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Guangdong Tianan New Material CoSHSE:603725 -2.58%69 Return-on-Tangible-Equity is 14.81% as of Mar. 2026, which is 82% above its 10-year median of 8.15. GuruFocus rates SHSE:603725 with a GF Score™ of 69/100 and a GF Value™ of ¥7.14 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,571 Chemicals companies, Guangdong Tianan New Material Co ranks better than 91.98% on this metric.
The historical rank and industry rank for Guangdong Tianan New Material Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:603725'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -85.77 Med: 8.15 Max: 43.55
Current: 23.76
During the past 13 years, Guangdong Tianan New Material Co's highest Return-on-Tangible-Equity was 43.55%. The lowest was -85.77%. And the median was 8.15%.
SHSE:603725's Return-on-Tangible-Equity is ranked better than 91.98% of 1571
companies
in the Chemicals industry
Industry Median: 5.9
vs SHSE:603725: 23.76
Guangdong Tianan New Material Co (SHSE:603725) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Guangdong Tianan New Material Co Return-on-Tangible-Equity Related Terms
Guangdong Tianan New Material Co Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Guangdong Tianan New Material Co Return-on-Tangible-Equity Chart
SHSE:603725 vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Guangdong Tianan New Material Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Guangdong Tianan New Material Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Guangdong Tianan New Material Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Guangdong Tianan New Material Co's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.81% mean?
Guangdong Tianan New Material Co (SHSE:603725) has a Return-on-Tangible-Equity of 14.81% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Guangdong Tianan New Material Co and its competitors. This is 82% above median its historical median of 8.15. According to the industry distribution chart, Guangdong Tianan New Material Co ranks #126 out of 1571 companies in the Chemicals industry, placing it in the top 8%.
Is Guangdong Tianan New Material Co's Return-on-Tangible-Equity too high?
Guangdong Tianan New Material Co's current Return-on-Tangible-Equity of 14.81% is 82% above median its 10-year median of 8.15. The Chemicals industry median Return-on-Tangible-Equity is 5.90. Guangdong Tianan New Material Co's value of 14.81% is 151% above this industry median. Based on the distribution chart, Guangdong Tianan New Material Co ranks #126 out of 1571 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Guangdong Tianan New Material Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Tianan New Material Co's Return-on-Tangible-Equity compare to DOW?
According to the Chemicals industry distribution chart, Guangdong Tianan New Material Co ranks #126 out of 1571 companies for Return-on-Tangible-Equity. This places Guangdong Tianan New Material Co in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.90. Guangdong Tianan New Material Co's value of 14.81% is 151% above this benchmark. While the company's 10-year median is 8.15 vs. the industry median of 5.90, Guangdong Tianan New Material Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.90, based on 1,571 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Guangdong Tianan New Material Co's current Return-on-Tangible-Equity of 14.81% is 151% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Guangdong Tianan New Material Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangdong Tianan New Material Co's current Return-on-Tangible-Equity is 14.81%, which is 82% above median its own 10-year median of 8.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Tianan New Material Co stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Tianan New Material Co (SHSE:603725) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥7.14, compared to a current price of ¥10.20 — trading 42.9% above its estimated fair value. The current Return-on-Tangible-Equity is 14.81%, which is 82% above median its 10-year median of 8.15 and 151% above the Chemicals industry median of 5.90. Guangdong Tianan New Material Co's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Guangdong Tianan New Material Co (SHSE:603725), the current Return-on-Tangible-Equity is 14.81% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Guangdong Tianan New Material Co (SHSE:603725) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Tianan New Material Co stock appears to be overvalued.
The current stock price of ¥10.20 is trading 42.9% above its estimated GF Value™ of ¥7.14.
GuruFocus considers Guangdong Tianan New Material Co to be Significantly Overvalued.
Key valuation signals for SHSE:603725:
Return-on-Tangible-Equity: 14.81% (82% above median its 10-year median of 8.15)
GF Value™: ¥7.14 vs. price of ¥10.20 (42.9% above fair value)
Industry Position: 151% above the Chemicals median (#126 of 1571)
No single metric tells the full story. See the SHSE:603725 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Tianan New Material Co Ltd is a manufacturer of environmentally friendly high-end decorative materials and automotive interior materials in China. Its primary products include home decoration finishes, automotive interior finishes, films, and artificial leather products, such as polyvinyl chloride (PVC), polypropylene (PP), and thermoplastic polyolefin (TPO), and other polymer surface materials.
69GF Score
Get the complete analysis for SHSE:603725
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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