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Sk Shu Paint CoSHSE:603737 -1.41%76 Return-on-Tangible-Equity is 20.43% as of Mar. 2026, which is 4% below its 10-year median of 21.38. GuruFocus rates SHSE:603737 with a GF Score™ of 76/100 and a GF Value™ of ¥32.81 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,571 Chemicals companies, Sk Shu Paint Co ranks better than 95.54% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sk Shu Paint Co's annualized net income for the quarter that ended in Mar. 2026 was ¥427 Mil. Sk Shu Paint Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥2,089 Mil. Therefore, Sk Shu Paint Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.43%.
The historical rank and industry rank for Sk Shu Paint Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:603737'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -24.07 Med: 21.38 Max: 37.06
Current: 34.74
During the past 13 years, Sk Shu Paint Co's highest Return-on-Tangible-Equity was 37.06%. The lowest was -24.07%. And the median was 21.38%.
SHSE:603737's Return-on-Tangible-Equity is ranked better than 95.54% of 1571
companies
in the Chemicals industry
Industry Median: 5.9
vs SHSE:603737: 34.74
Sk Shu Paint Co (SHSE:603737) 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.
Sk Shu Paint Co Return-on-Tangible-Equity Related Terms
Sk Shu Paint Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sk Shu Paint Co's Return-on-Tangible-Equity can be seen below:
* 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.
SHSE:603737 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Sk Shu Paint 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.
Sk Shu Paint Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sk Shu Paint Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sk Shu Paint 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 20.43% mean?
Sk Shu Paint Co (SHSE:603737) has a Return-on-Tangible-Equity of 20.43% 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 Sk Shu Paint Co and its competitors. This is near median its historical median of 21.38. According to the industry distribution chart, Sk Shu Paint Co ranks #70 out of 1571 companies in the Chemicals industry, placing it in the top 4.5%.
Is Sk Shu Paint Co's Return-on-Tangible-Equity too high?
Sk Shu Paint Co's current Return-on-Tangible-Equity of 20.43% is near median its 10-year median of 21.38. The Chemicals industry median Return-on-Tangible-Equity is 5.90. Sk Shu Paint Co's value of 20.43% is 246.3% above this industry median. Based on the distribution chart, Sk Shu Paint Co ranks #70 out of 1571 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sk Shu Paint Co has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sk Shu Paint Co's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sk Shu Paint Co ranks #70 out of 1571 companies for Return-on-Tangible-Equity. This places Sk Shu Paint Co in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.90. Sk Shu Paint Co's value of 20.43% is 246.3% above this benchmark. While the company's 10-year median is 21.38 vs. the industry median of 5.90, Sk Shu Paint 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. Sk Shu Paint Co's current Return-on-Tangible-Equity of 20.43% is 246.3% 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 Sk Shu Paint 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. Sk Shu Paint Co's current Return-on-Tangible-Equity is 20.43%, which is near median its own 10-year median of 21.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sk Shu Paint Co stock overvalued right now?
Based on GuruFocus' analysis, Sk Shu Paint Co (SHSE:603737) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥32.81, compared to a current price of ¥23.13 — trading 29.5% below its estimated fair value. The current Return-on-Tangible-Equity is 20.43%, which is near median its 10-year median of 21.38 and 246.3% above the Chemicals industry median of 5.90. Sk Shu Paint Co's overall GF Score™ is 76/100 with 2 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 Sk Shu Paint Co (SHSE:603737), the current Return-on-Tangible-Equity is 20.43% 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 Sk Shu Paint Co (SHSE:603737) Overvalued in 2026?
Based on GuruFocus' analysis, Sk Shu Paint Co stock appears to be undervalued.
The current stock price of ¥23.13 is trading 29.5% below its estimated GF Value™ of ¥32.81.
GuruFocus considers Sk Shu Paint Co to be Significantly Undervalued.
Key valuation signals for SHSE:603737:
Return-on-Tangible-Equity: 20.43% (near median its 10-year median of 21.38)
GF Value™: ¥32.81 vs. price of ¥23.13 (29.5% below fair value)
Industry Position: 246.3% above the Chemicals median (#70 of 1571)
No single metric tells the full story. See the SHSE:603737 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sk Shu Paint Co Ltd is engaged in the Research and development, production and sales of architectural coatings (wall coatings), wood coatings and adhesives.
76GF Score
Get the complete analysis for SHSE:603737
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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