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Xiamen Leading Optics CoSHSE:605118 -0.46%90 Return-on-Tangible-Equity is 17.96% as of Mar. 2026, which is 2% above its 10-year median of 17.60. GuruFocus rates SHSE:605118 with a GF Score™ of 90/100 and a GF Value™ of ¥28.18 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,384 Hardware companies, Xiamen Leading Optics Co ranks better than 82.97% 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. Xiamen Leading Optics Co's annualized net income for the quarter that ended in Mar. 2026 was ¥281.8 Mil. Xiamen Leading Optics Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥1,568.8 Mil. Therefore, Xiamen Leading Optics Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.96%.
The historical rank and industry rank for Xiamen Leading Optics Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:605118'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.03 Med: 17.6 Max: 70.06
Current: 17.82
During the past 10 years, Xiamen Leading Optics Co's highest Return-on-Tangible-Equity was 70.06%. The lowest was 11.03%. And the median was 17.60%.
SHSE:605118's Return-on-Tangible-Equity is ranked better than 82.97% of 2384
companies
in the Hardware industry
Industry Median: 5.395
vs SHSE:605118: 17.82
Xiamen Leading Optics Co (SHSE:605118) 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.
Xiamen Leading Optics Co Return-on-Tangible-Equity Related Terms
Xiamen Leading Optics Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Xiamen Leading Optics 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.
Xiamen Leading Optics Co Return-on-Tangible-Equity Chart
SHSE:605118 vs APH, GLW, TEL: Return-on-Tangible-Equity Comparison
For the Electronic Components subindustry, Xiamen Leading Optics 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.
Xiamen Leading Optics Co Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Xiamen Leading Optics Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Xiamen Leading Optics 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 17.96% mean?
Xiamen Leading Optics Co (SHSE:605118) has a Return-on-Tangible-Equity of 17.96% 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 Xiamen Leading Optics Co and its competitors. This is near median its historical median of 17.60. Over the past decade, Xiamen Leading Optics Co's Return-on-Tangible-Equity has ranged from 11.03 to 70.06. According to the industry distribution chart, Xiamen Leading Optics Co ranks #406 out of 2384 companies in the Hardware industry, placing it in the top 17%.
Is Xiamen Leading Optics Co's Return-on-Tangible-Equity too high?
Xiamen Leading Optics Co's current Return-on-Tangible-Equity of 17.96% is near median its 10-year median of 17.60. Over the past 10 years, this metric has ranged from a low of 11.03 to a high of 70.06. The Hardware industry median Return-on-Tangible-Equity is 5.40. Xiamen Leading Optics Co's value of 17.96% is 232.9% above this industry median. Based on the distribution chart, Xiamen Leading Optics Co ranks #406 out of 2384 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Xiamen Leading Optics Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Leading Optics Co's Return-on-Tangible-Equity compare to APH and GLW?
According to the Hardware industry distribution chart, Xiamen Leading Optics Co ranks #406 out of 2384 companies for Return-on-Tangible-Equity. This places Xiamen Leading Optics Co in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.40. Xiamen Leading Optics Co's value of 17.96% is 232.9% above this benchmark. Historically, Xiamen Leading Optics Co's own Return-on-Tangible-Equity has ranged from 11.03 to 70.06 over the past decade. While the company's 10-year median is 17.60 vs. the industry median of 5.40, Xiamen Leading Optics 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.40, based on 2,384 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. Xiamen Leading Optics Co's current Return-on-Tangible-Equity of 17.96% is 232.9% 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 Xiamen Leading Optics Co and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Leading Optics Co's current Return-on-Tangible-Equity is 17.96%, which is near median its own 10-year median of 17.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Leading Optics Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Leading Optics Co (SHSE:605118) is currently considered Fairly Valued. The stock's GF Value™ is ¥28.18, compared to a current price of ¥28.02 — trading 0.6% below its estimated fair value. The current Return-on-Tangible-Equity is 17.96%, which is near median its 10-year median of 17.60 and 232.9% above the Hardware industry median of 5.40. Xiamen Leading Optics Co's overall GF Score™ is 90/100 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 Xiamen Leading Optics Co (SHSE:605118), the current Return-on-Tangible-Equity is 17.96% 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 Xiamen Leading Optics Co (SHSE:605118) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Leading Optics Co stock appears to be undervalued.
The current stock price of ¥28.02 is trading 0.6% below its estimated GF Value™ of ¥28.18.
GuruFocus considers Xiamen Leading Optics Co to be Fairly Valued.
Key valuation signals for SHSE:605118:
Return-on-Tangible-Equity: 17.96% (near median its 10-year median of 17.60)
GF Value™: ¥28.18 vs. price of ¥28.02 (0.6% below fair value)
Industry Position: 232.9% above the Hardware median (#406 of 2384)
No single metric tells the full story. See the SHSE:605118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen Leading Optics Co Ltd is engaged in design, production and sales of optical lenses. The company's products include Surveillance Lens; Automotives Lens; Machine Vision Lens; ITS Lens; Low Distortion Lens; Consumer Imaging; and Panoramic Lens. Its products are used in multiple fields of application including security surveillance, medical and biological studies and researches, intelligent traffic systems, video conference, intelligent home security, sports camera and many more.
90GF Score
Get the complete analysis for SHSE:605118
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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