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Shandong Donghong Pipe Industry CoSHSE:603856 +1.18%80 Return-on-Tangible-Equity is 6.81% as of Mar. 2026, which is 36% below its 10-year median of 10.66. GuruFocus rates SHSE:603856 with a GF Score™ of 80/100 and a GF Value™ of ¥9.29 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,710 Construction companies, Shandong Donghong Pipe Industry Co ranks better than 55.03% on this metric.
The historical rank and industry rank for Shandong Donghong Pipe Industry Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:603856'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.12 Med: 10.66 Max: 18.36
Current: 9.85
During the past 13 years, Shandong Donghong Pipe Industry Co's highest Return-on-Tangible-Equity was 18.36%. The lowest was 7.12%. And the median was 10.66%.
SHSE:603856's Return-on-Tangible-Equity is ranked better than 55.03% of 1710
companies
in the Construction industry
Industry Median: 8.21
vs SHSE:603856: 9.85
Shandong Donghong Pipe Industry Co (SHSE:603856) 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.
Shandong Donghong Pipe Industry Co Return-on-Tangible-Equity Related Terms
Shandong Donghong Pipe Industry 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.
Shandong Donghong Pipe Industry Co Return-on-Tangible-Equity Chart
SHSE:603856 vs TT, JCI, CARR: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Shandong Donghong Pipe Industry 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.
Shandong Donghong Pipe Industry Co Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Shandong Donghong Pipe Industry Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shandong Donghong Pipe Industry 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 6.81% mean?
Shandong Donghong Pipe Industry Co (SHSE:603856) has a Return-on-Tangible-Equity of 6.81% 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 Shandong Donghong Pipe Industry Co and its competitors. This is 36% below median its historical median of 10.66. Over the past decade, Shandong Donghong Pipe Industry Co's Return-on-Tangible-Equity has ranged from 7.12 to 18.36. According to the industry distribution chart, Shandong Donghong Pipe Industry Co ranks #769 out of 1710 companies in the Construction industry, placing it in the top 45%.
Is Shandong Donghong Pipe Industry Co's Return-on-Tangible-Equity too high?
Shandong Donghong Pipe Industry Co's current Return-on-Tangible-Equity of 6.81% is 36% below median its 10-year median of 10.66. Over the past 10 years, this metric has ranged from a low of 7.12 to a high of 18.36. The Construction industry median Return-on-Tangible-Equity is 8.21. Shandong Donghong Pipe Industry Co's value of 6.81% is 17.1% below this industry median. Based on the distribution chart, Shandong Donghong Pipe Industry Co ranks #769 out of 1710 companies in the Construction industry, which is above the industry midpoint. Overall, Shandong Donghong Pipe Industry Co has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Donghong Pipe Industry Co's Return-on-Tangible-Equity compare to TT and JCI?
According to the Construction industry distribution chart, Shandong Donghong Pipe Industry Co ranks #769 out of 1710 companies for Return-on-Tangible-Equity. This puts Shandong Donghong Pipe Industry Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.21. Shandong Donghong Pipe Industry Co's value of 6.81% is 17.1% below this benchmark. Historically, Shandong Donghong Pipe Industry Co's own Return-on-Tangible-Equity has ranged from 7.12 to 18.36 over the past decade. While the company's 10-year median is 10.66 vs. the industry median of 8.21, Shandong Donghong Pipe Industry Co has consistently been below 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,710 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. Shandong Donghong Pipe Industry Co's current Return-on-Tangible-Equity of 6.81% is 17.1% below 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 Shandong Donghong Pipe Industry Co and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Donghong Pipe Industry Co's current Return-on-Tangible-Equity is 6.81%, which is 36% below median its own 10-year median of 10.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Donghong Pipe Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co (SHSE:603856) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥9.29, compared to a current price of ¥11.13 — trading 19.8% above its estimated fair value. The current Return-on-Tangible-Equity is 6.81%, which is 36% below median its 10-year median of 10.66 and 17.1% below the Construction industry median of 8.21. Shandong Donghong Pipe Industry Co's overall GF Score™ is 80/100 with 5 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 Shandong Donghong Pipe Industry Co (SHSE:603856), the current Return-on-Tangible-Equity is 6.81% 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 Shandong Donghong Pipe Industry Co (SHSE:603856) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co stock appears to be overvalued.
The current stock price of ¥11.13 is trading 19.8% above its estimated GF Value™ of ¥9.29.
GuruFocus considers Shandong Donghong Pipe Industry Co to be Modestly Overvalued.
Key valuation signals for SHSE:603856:
Return-on-Tangible-Equity: 6.81% (36% below median its 10-year median of 10.66)
GF Value™: ¥9.29 vs. price of ¥11.13 (19.8% above fair value)
Industry Position: 17.1% below the Construction median (#769 of 1710)
No single metric tells the full story. See the SHSE:603856 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Donghong Pipe Industry Co Business Description
Shandong Donghong Pipe Industry Co Ltd is engaged in the research and development, manufacturing and service of an intelligent pipeline system in China. Its products line includes steel mesh skeleton plastic composite pipes, super wear-resisting composite pipes, HDPE gas pipes, plastic-coated steel pipes, polyethylene pipes for underground coal mining, and other products.
80GF Score
Get the complete analysis for SHSE:603856
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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