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Zhejiang Xinhua Chemical CoSHSE:603867 -3.53%92 Return-on-Tangible-Equity is 11.04% as of Mar. 2026, which is 26% below its 10-year median of 14.97. GuruFocus rates SHSE:603867 with a GF Score™ of 92/100 and a GF Value™ of ¥29.23 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,569 Chemicals companies, Zhejiang Xinhua Chemical Co ranks better than 69.98% 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. Zhejiang Xinhua Chemical Co's annualized net income for the quarter that ended in Mar. 2026 was ¥325 Mil. Zhejiang Xinhua Chemical Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥2,944 Mil. Therefore, Zhejiang Xinhua Chemical Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.04%.
The historical rank and industry rank for Zhejiang Xinhua Chemical Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:603867'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.25 Med: 14.97 Max: 29.43
Current: 10.45
During the past 12 years, Zhejiang Xinhua Chemical Co's highest Return-on-Tangible-Equity was 29.43%. The lowest was 10.25%. And the median was 14.97%.
SHSE:603867's Return-on-Tangible-Equity is ranked better than 69.98% of 1569
companies
in the Chemicals industry
Industry Median: 5.78
vs SHSE:603867: 10.45
Zhejiang Xinhua Chemical Co (SHSE:603867) 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.
Zhejiang Xinhua Chemical Co Return-on-Tangible-Equity Related Terms
Zhejiang Xinhua Chemical 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.
Zhejiang Xinhua Chemical Co Return-on-Tangible-Equity Chart
SHSE:603867 vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Zhejiang Xinhua Chemical 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.
Zhejiang Xinhua Chemical Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Zhejiang Xinhua Chemical Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zhejiang Xinhua Chemical 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 11.04% mean?
Zhejiang Xinhua Chemical Co (SHSE:603867) has a Return-on-Tangible-Equity of 11.04% 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 Zhejiang Xinhua Chemical Co and its competitors. This is 26% below median its historical median of 14.97. Over the past decade, Zhejiang Xinhua Chemical Co's Return-on-Tangible-Equity has ranged from 10.25 to 29.43. According to the industry distribution chart, Zhejiang Xinhua Chemical Co ranks #471 out of 1569 companies in the Chemicals industry, placing it in the top 30%.
Is Zhejiang Xinhua Chemical Co's Return-on-Tangible-Equity too high?
Zhejiang Xinhua Chemical Co's current Return-on-Tangible-Equity of 11.04% is 26% below median its 10-year median of 14.97. Over the past 10 years, this metric has ranged from a low of 10.25 to a high of 29.43. The Chemicals industry median Return-on-Tangible-Equity is 5.78. Zhejiang Xinhua Chemical Co's value of 11.04% is 91% above this industry median. Based on the distribution chart, Zhejiang Xinhua Chemical Co ranks #471 out of 1569 companies in the Chemicals industry, which is above the industry midpoint. Overall, Zhejiang Xinhua Chemical Co has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Xinhua Chemical Co's Return-on-Tangible-Equity compare to DOW?
According to the Chemicals industry distribution chart, Zhejiang Xinhua Chemical Co ranks #471 out of 1569 companies for Return-on-Tangible-Equity. This puts Zhejiang Xinhua Chemical Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.78. Zhejiang Xinhua Chemical Co's value of 11.04% is 91% above this benchmark. Historically, Zhejiang Xinhua Chemical Co's own Return-on-Tangible-Equity has ranged from 10.25 to 29.43 over the past decade. While the company's 10-year median is 14.97 vs. the industry median of 5.78, Zhejiang Xinhua Chemical 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 5.78, based on 1,569 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. Zhejiang Xinhua Chemical Co's current Return-on-Tangible-Equity of 11.04% is 91% 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 Zhejiang Xinhua Chemical Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Xinhua Chemical Co's current Return-on-Tangible-Equity is 11.04%, which is 26% below median its own 10-year median of 14.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Xinhua Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Xinhua Chemical Co (SHSE:603867) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥29.23, compared to a current price of ¥26.24 — trading 10.2% below its estimated fair value. The current Return-on-Tangible-Equity is 11.04%, which is 26% below median its 10-year median of 14.97 and 91% above the Chemicals industry median of 5.78. Zhejiang Xinhua Chemical Co's overall GF Score™ is 92/100 with 4 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 Zhejiang Xinhua Chemical Co (SHSE:603867), the current Return-on-Tangible-Equity is 11.04% 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 Zhejiang Xinhua Chemical Co (SHSE:603867) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Xinhua Chemical Co stock appears to be undervalued.
The current stock price of ¥26.24 is trading 10.2% below its estimated GF Value™ of ¥29.23.
GuruFocus considers Zhejiang Xinhua Chemical Co to be Modestly Undervalued.
Key valuation signals for SHSE:603867:
Return-on-Tangible-Equity: 11.04% (26% below median its 10-year median of 14.97)
GF Value™: ¥29.23 vs. price of ¥26.24 (10.2% below fair value)
Industry Position: 91% above the Chemicals median (#471 of 1569)
No single metric tells the full story. See the SHSE:603867 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Xinhua Chemical Co Ltd is mainly engaged in the production and operation of Organic Amine series, Aroma chemical series, Peroxide series,Synthetic Ammonia series and other fine chemicals.
92GF Score
Get the complete analysis for SHSE:603867
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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