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Hengsheng Energy CoSHSE:605580 +4.00%84 Return-on-Tangible-Equity is 22.97% as of Mar. 2026, which is 3% above its 10-year median of 22.20. GuruFocus rates SHSE:605580 with a GF Score™ of 84/100 and a GF Value™ of ¥15.35 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 432 Utilities - Independent Power Producers companies, Hengsheng Energy Co ranks better than 84.26% 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. Hengsheng Energy Co's annualized net income for the quarter that ended in Mar. 2026 was ¥194 Mil. Hengsheng Energy Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥846 Mil. Therefore, Hengsheng Energy Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 22.97%.
The historical rank and industry rank for Hengsheng Energy Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:605580'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.78 Med: 22.2 Max: 36.21
Current: 20.6
During the past 11 years, Hengsheng Energy Co's highest Return-on-Tangible-Equity was 36.21%. The lowest was 15.78%. And the median was 22.20%.
SHSE:605580's Return-on-Tangible-Equity is ranked better than 84.26% of 432
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.41
vs SHSE:605580: 20.60
Hengsheng Energy Co (SHSE:605580) 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.
Hengsheng Energy Co Return-on-Tangible-Equity Related Terms
Hengsheng Energy Co Return-on-Tangible-Equity Historical Data
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The historical data trend for Hengsheng Energy 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.
Hengsheng Energy Co Return-on-Tangible-Equity Chart
Hengsheng Energy Co Return-on-Tangible-Equity Competitor Comparison
For the Utilities - Renewable subindustry, Hengsheng Energy 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.
Hengsheng Energy Co Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Hengsheng Energy Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hengsheng Energy 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 22.97% mean?
Hengsheng Energy Co (SHSE:605580) has a Return-on-Tangible-Equity of 22.97% 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 Hengsheng Energy Co and its competitors. This is near median its historical median of 22.20. Over the past decade, Hengsheng Energy Co's Return-on-Tangible-Equity has ranged from 15.78 to 36.21. According to the industry distribution chart, Hengsheng Energy Co ranks #68 out of 432 companies in the Utilities - Independent Power Producers industry, placing it in the top 15.7%.
Is Hengsheng Energy Co's Return-on-Tangible-Equity too high?
Hengsheng Energy Co's current Return-on-Tangible-Equity of 22.97% is near median its 10-year median of 22.20. Over the past 10 years, this metric has ranged from a low of 15.78 to a high of 36.21. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.41. Hengsheng Energy Co's value of 22.97% is 420.9% above this industry median. Based on the distribution chart, Hengsheng Energy Co ranks #68 out of 432 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Hengsheng Energy Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hengsheng Energy Co's Return-on-Tangible-Equity compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Hengsheng Energy Co ranks #68 out of 432 companies for Return-on-Tangible-Equity. This places Hengsheng Energy Co in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.41. Hengsheng Energy Co's value of 22.97% is 420.9% above this benchmark. Historically, Hengsheng Energy Co's own Return-on-Tangible-Equity has ranged from 15.78 to 36.21 over the past decade. While the company's 10-year median is 22.20 vs. the industry median of 4.41, Hengsheng Energy 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 Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.41, based on 432 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. Hengsheng Energy Co's current Return-on-Tangible-Equity of 22.97% is 420.9% 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 Hengsheng Energy Co and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengsheng Energy Co's current Return-on-Tangible-Equity is 22.97%, which is near median its own 10-year median of 22.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengsheng Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Hengsheng Energy Co (SHSE:605580) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥15.35, compared to a current price of ¥18.98 — trading 23.6% above its estimated fair value. The current Return-on-Tangible-Equity is 22.97%, which is near median its 10-year median of 22.20 and 420.9% above the Utilities - Independent Power Producers industry median of 4.41. Hengsheng Energy Co's overall GF Score™ is 84/100 with 6 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 Hengsheng Energy Co (SHSE:605580), the current Return-on-Tangible-Equity is 22.97% 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 Hengsheng Energy Co (SHSE:605580) Overvalued in 2026?
Based on GuruFocus' analysis, Hengsheng Energy Co stock appears to be overvalued.
The current stock price of ¥18.98 is trading 23.6% above its estimated GF Value™ of ¥15.35.
GuruFocus considers Hengsheng Energy Co to be Modestly Overvalued.
Key valuation signals for SHSE:605580:
Return-on-Tangible-Equity: 22.97% (near median its 10-year median of 22.20)
GF Value™: ¥15.35 vs. price of ¥18.98 (23.6% above fair value)
Industry Position: 420.9% above the Utilities - Independent Power Producers median (#68 of 432)
No single metric tells the full story. See the SHSE:605580 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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