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Lutian Machinery CoSHSE:605259 -0.88%81 Return-on-Tangible-Equity is 10.21% as of Mar. 2026, which is 33% below its 10-year median of 15.26. GuruFocus rates SHSE:605259 with a GF Score™ of 81/100 and a GF Value™ of ¥23.65 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,972 Industrial Products companies, Lutian Machinery Co ranks better than 74.39% 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. Lutian Machinery Co's annualized net income for the quarter that ended in Mar. 2026 was ¥180 Mil. Lutian Machinery Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥1,761 Mil. Therefore, Lutian Machinery Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.21%.
The historical rank and industry rank for Lutian Machinery Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:605259'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.8 Med: 15.26 Max: 20.79
Current: 13.61
During the past 9 years, Lutian Machinery Co's highest Return-on-Tangible-Equity was 20.79%. The lowest was 8.80%. And the median was 15.26%.
SHSE:605259's Return-on-Tangible-Equity is ranked better than 74.39% of 2972
companies
in the Industrial Products industry
Industry Median: 6.78
vs SHSE:605259: 13.61
Lutian Machinery Co (SHSE:605259) 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.
Lutian Machinery Co Return-on-Tangible-Equity Related Terms
Lutian Machinery Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lutian Machinery 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.
Lutian Machinery Co Return-on-Tangible-Equity Chart
SHSE:605259 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Lutian Machinery 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.
Lutian Machinery Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lutian Machinery Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lutian Machinery 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 10.21% mean?
Lutian Machinery Co (SHSE:605259) has a Return-on-Tangible-Equity of 10.21% 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 Lutian Machinery Co and its competitors. This is 33% below median its historical median of 15.26. Over the past decade, Lutian Machinery Co's Return-on-Tangible-Equity has ranged from 8.80 to 20.79. According to the industry distribution chart, Lutian Machinery Co ranks #761 out of 2972 companies in the Industrial Products industry, placing it in the top 25.6%.
Is Lutian Machinery Co's Return-on-Tangible-Equity too high?
Lutian Machinery Co's current Return-on-Tangible-Equity of 10.21% is 33% below median its 10-year median of 15.26. Over the past 10 years, this metric has ranged from a low of 8.80 to a high of 20.79. The Industrial Products industry median Return-on-Tangible-Equity is 6.78. Lutian Machinery Co's value of 10.21% is 50.6% above this industry median. Based on the distribution chart, Lutian Machinery Co ranks #761 out of 2972 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Lutian Machinery Co has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lutian Machinery Co's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Lutian Machinery Co ranks #761 out of 2972 companies for Return-on-Tangible-Equity. This puts Lutian Machinery Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.78. Lutian Machinery Co's value of 10.21% is 50.6% above this benchmark. Historically, Lutian Machinery Co's own Return-on-Tangible-Equity has ranged from 8.80 to 20.79 over the past decade. While the company's 10-year median is 15.26 vs. the industry median of 6.78, Lutian Machinery 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.78, based on 2,972 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. Lutian Machinery Co's current Return-on-Tangible-Equity of 10.21% is 50.6% 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 Lutian Machinery Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lutian Machinery Co's current Return-on-Tangible-Equity is 10.21%, which is 33% below median its own 10-year median of 15.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lutian Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Lutian Machinery Co (SHSE:605259) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥23.65, compared to a current price of ¥16.99 — trading 28.2% below its estimated fair value. The current Return-on-Tangible-Equity is 10.21%, which is 33% below median its 10-year median of 15.26 and 50.6% above the Industrial Products industry median of 6.78. Lutian Machinery Co's overall GF Score™ is 81/100 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 Lutian Machinery Co (SHSE:605259), the current Return-on-Tangible-Equity is 10.21% 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 Lutian Machinery Co (SHSE:605259) Overvalued in 2026?
Based on GuruFocus' analysis, Lutian Machinery Co stock appears to be undervalued.
The current stock price of ¥16.99 is trading 28.2% below its estimated GF Value™ of ¥23.65.
GuruFocus considers Lutian Machinery Co to be Modestly Undervalued.
Key valuation signals for SHSE:605259:
Return-on-Tangible-Equity: 10.21% (33% below median its 10-year median of 15.26)
GF Value™: ¥23.65 vs. price of ¥16.99 (28.2% below fair value)
Industry Position: 50.6% above the Industrial Products median (#761 of 2972)
No single metric tells the full story. See the SHSE:605259 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lutian Machinery Co Ltd research and development, production and sales of general power machinery products mainly including generator sets, water pump units and engines and high-pressure cleaner products.
81GF Score
Get the complete analysis for SHSE:605259
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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