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SHSE:603991's Return-on-Tangible-Equity is ranked worse than 61.96% of 991
companies
in the Semiconductors industry
Industry Median: 6.42
vs SHSE:603991: 1.90
Shenzhen Leading Semiconductor Industry Co (SHSE:603991) 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.
Shenzhen Leading Semiconductor Industry Co Return-on-Tangible-Equity Related Terms
Shenzhen Leading Semiconductor 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.
Shenzhen Leading Semiconductor Industry Co Return-on-Tangible-Equity Chart
Shenzhen Leading Semiconductor Industry Co Annual Data
SHSE:603991 vs AMAT, LRCX, KLAC: Return-on-Tangible-Equity Comparison
For the Semiconductor Equipment & Materials subindustry, Shenzhen Leading Semiconductor 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.
Shenzhen Leading Semiconductor Industry Co Return-on-Tangible-Equity vs Semiconductors Industry
* 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 8.86% mean?
Shenzhen Leading Semiconductor Industry Co (SHSE:603991) has a Return-on-Tangible-Equity of 8.86% 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 Shenzhen Leading Semiconductor Industry Co and its competitors. According to the industry distribution chart, Shenzhen Leading Semiconductor Industry Co ranks #614 out of 991 companies in the Semiconductors industry, placing it in the top 62%.
Is Shenzhen Leading Semiconductor Industry Co's Return-on-Tangible-Equity too high?
Shenzhen Leading Semiconductor Industry Co's current Return-on-Tangible-Equity is 8.86%. The Semiconductors industry median Return-on-Tangible-Equity is 6.42. Shenzhen Leading Semiconductor Industry Co's value of 8.86% is 38% above this industry median. Based on the distribution chart, Shenzhen Leading Semiconductor Industry Co ranks #614 out of 991 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Shenzhen Leading Semiconductor Industry Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Leading Semiconductor Industry Co's Return-on-Tangible-Equity compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Shenzhen Leading Semiconductor Industry Co ranks #614 out of 991 companies for Return-on-Tangible-Equity. This places Shenzhen Leading Semiconductor Industry Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.42. Shenzhen Leading Semiconductor Industry Co's value of 8.86% is 38% above this benchmark. 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 Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 6.42, based on 991 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. Shenzhen Leading Semiconductor Industry Co's current Return-on-Tangible-Equity of 8.86% is 38% 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 Shenzhen Leading Semiconductor Industry Co and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 6.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Leading Semiconductor Industry Co's current Return-on-Tangible-Equity is 8.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Leading Semiconductor Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Leading Semiconductor Industry Co (SHSE:603991) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥168.50, compared to a current price of ¥134.54 — trading 20.2% below its estimated fair value. The current Return-on-Tangible-Equity is 8.86% and 38% above the Semiconductors industry median of 6.42. Shenzhen Leading Semiconductor Industry Co's overall GF Score™ is 70/100 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 Shenzhen Leading Semiconductor Industry Co (SHSE:603991), the current Return-on-Tangible-Equity is 8.86% 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 Shenzhen Leading Semiconductor Industry Co (SHSE:603991) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Leading Semiconductor Industry Co stock appears to be undervalued.
The current stock price of ¥134.54 is trading 20.2% below its estimated GF Value™ of ¥168.50.
GuruFocus considers Shenzhen Leading Semiconductor Industry Co to be Modestly Undervalued.
Key valuation signals for SHSE:603991:
Return-on-Tangible-Equity: 8.86%
GF Value™: ¥168.50 vs. price of ¥134.54 (20.2% below fair value)
Industry Position: 38% above the Semiconductors median (#614 of 991)
No single metric tells the full story. See the SHSE:603991 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Leading Semiconductor Industry Co Ltd is engaged in the sales of self-produced products, the import and export of goods and technologies, and semiconductor device manufacturing. The company operates in the manufacturing of specialized semiconductor device equipment and electronic equipment, the development of basic and application artificial intelligence software, and the research, development, and production of electronic specialty materials. It also provides technical services, technology development, and information system operation and maintenance services.
70GF Score
Get the complete analysis for SHSE:603991
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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