Zhuzhou Huarui Precision Tools Co (SHSE:688059) Return-on-Tangible-Equity: 37.42% (As of Mar. 2026) — 66% Above Median

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SHSE:688059 Zhuzhou Huarui Precision Tools Co Ltd SHSE:688059
87 GF Score
Price ¥76.01
GF Value ¥66.73
Valuation Modestly Overvalued
! 6 Warning Signs
View Full Analysis

What is Zhuzhou Huarui Precision Tools Co Return-on-Tangible-Equity?

Zhuzhou Huarui Precision Tools Co SHSE:688059 -3.63% 87 Return-on-Tangible-Equity is 37.42% as of Mar. 2026, which is 66% above its 10-year median of 22.52. GuruFocus rates SHSE:688059 with a GF Score™ of 87/100 and a GF Value™ of ¥66.73 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,974 Industrial Products companies, Zhuzhou Huarui Precision Tools Co ranks better than 85.81% 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. Zhuzhou Huarui Precision Tools Co's annualized net income for the quarter that ended in Mar. 2026 was ¥701 Mil. Zhuzhou Huarui Precision Tools Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥1,873 Mil. Therefore, Zhuzhou Huarui Precision Tools Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 37.42%.

The historical rank and industry rank for Zhuzhou Huarui Precision Tools Co's Return-on-Tangible-Equity or its related term are showing as below:

SHSE:688059' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.42   Med: 22.52   Max: 27.81
Current: 21.18

During the past 9 years, Zhuzhou Huarui Precision Tools Co's highest Return-on-Tangible-Equity was 27.81%. The lowest was 8.42%. And the median was 22.52%.

SHSE:688059's Return-on-Tangible-Equity is ranked better than
85.81% of 2974 companies
in the Industrial Products industry
Industry Median: 6.775 vs SHSE:688059: 21.18

Zhuzhou Huarui Precision Tools Co  (SHSE:688059) 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.


Zhuzhou Huarui Precision Tools Co Return-on-Tangible-Equity Related Terms


Zhuzhou Huarui Precision Tools Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Zhuzhou Huarui Precision Tools 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.

Zhuzhou Huarui Precision Tools Co Return-on-Tangible-Equity Chart

Zhuzhou Huarui Precision Tools Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only 25.75 16.93 13.60 8.42 12.86

Zhuzhou Huarui Precision Tools Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.83 16.69 15.02 13.10 37.42

SHSE:688059 vs SNA, RBC, SWK: Return-on-Tangible-Equity Comparison

For the Tools & Accessories subindustry, Zhuzhou Huarui Precision Tools 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.


Zhuzhou Huarui Precision Tools Co Return-on-Tangible-Equity vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Zhuzhou Huarui Precision Tools Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Zhuzhou Huarui Precision Tools Co's Return-on-Tangible-Equity falls into.


SHSE:688059
87GF Score
Zhuzhou Huarui Precision Tools Co Ltd SHSE:688059
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhuzhou Huarui Precision Tools Co Return-on-Tangible-Equity Calculation

Zhuzhou Huarui Precision Tools Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=186.645/( (1308.51+1594.382 )/ 2 )
=186.645/1451.446
=12.86 %

Zhuzhou Huarui Precision Tools Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=700.756/( (1594.382+2151.358)/ 2 )
=700.756/1872.87
=37.42 %

* 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 37.42% mean?
Zhuzhou Huarui Precision Tools Co (SHSE:688059) has a Return-on-Tangible-Equity of 37.42% 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 Zhuzhou Huarui Precision Tools Co and its competitors. This is 66% above median its historical median of 22.52. Over the past decade, Zhuzhou Huarui Precision Tools Co's Return-on-Tangible-Equity has ranged from 8.42 to 27.81. According to the industry distribution chart, Zhuzhou Huarui Precision Tools Co ranks #422 out of 2974 companies in the Industrial Products industry, placing it in the top 14.2%.
Is Zhuzhou Huarui Precision Tools Co's Return-on-Tangible-Equity too high?
Zhuzhou Huarui Precision Tools Co's current Return-on-Tangible-Equity of 37.42% is 66% above median its 10-year median of 22.52. Over the past 10 years, this metric has ranged from a low of 8.42 to a high of 27.81. The Industrial Products industry median Return-on-Tangible-Equity is 6.78. Zhuzhou Huarui Precision Tools Co's value of 37.42% is 452.3% above this industry median. Based on the distribution chart, Zhuzhou Huarui Precision Tools Co ranks #422 out of 2974 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Zhuzhou Huarui Precision Tools Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhuzhou Huarui Precision Tools Co's Return-on-Tangible-Equity compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Zhuzhou Huarui Precision Tools Co ranks #422 out of 2974 companies for Return-on-Tangible-Equity. This places Zhuzhou Huarui Precision Tools Co in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.78. Zhuzhou Huarui Precision Tools Co's value of 37.42% is 452.3% above this benchmark. Historically, Zhuzhou Huarui Precision Tools Co's own Return-on-Tangible-Equity has ranged from 8.42 to 27.81 over the past decade. While the company's 10-year median is 22.52 vs. the industry median of 6.78, Zhuzhou Huarui Precision Tools 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 2,974 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. Zhuzhou Huarui Precision Tools Co's current Return-on-Tangible-Equity of 37.42% is 452.3% 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 Zhuzhou Huarui Precision Tools 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. Zhuzhou Huarui Precision Tools Co's current Return-on-Tangible-Equity is 37.42%, which is 66% above median its own 10-year median of 22.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhuzhou Huarui Precision Tools Co stock overvalued right now?
Based on GuruFocus' analysis, Zhuzhou Huarui Precision Tools Co (SHSE:688059) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥66.73, compared to a current price of ¥76.01 — trading 13.9% above its estimated fair value. The current Return-on-Tangible-Equity is 37.42%, which is 66% above median its 10-year median of 22.52 and 452.3% above the Industrial Products industry median of 6.78. Zhuzhou Huarui Precision Tools Co's overall GF Score™ is 87/100 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 Zhuzhou Huarui Precision Tools Co (SHSE:688059), the current Return-on-Tangible-Equity is 37.42% 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 Zhuzhou Huarui Precision Tools Co (SHSE:688059) Overvalued in 2026?

Based on GuruFocus' analysis, Zhuzhou Huarui Precision Tools Co stock appears to be overvalued. The current stock price of ¥76.01 is trading 13.9% above its estimated GF Value™ of ¥66.73. GuruFocus considers Zhuzhou Huarui Precision Tools Co to be Modestly Overvalued.

Key valuation signals for SHSE:688059:

  • Return-on-Tangible-Equity: 37.42% (66% above median its 10-year median of 22.52)
  • GF Value™: ¥66.73 vs. price of ¥76.01 (13.9% above fair value)
  • GF Score™: 87/100 with 6 warning signs
  • Industry Position: 452.3% above the Industrial Products median (#422 of 2974)

No single metric tells the full story. See the SHSE:688059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhuzhou Huarui Precision Tools Co Business Description

Address No. 68, Chuangye 2nd Road, Lusong District, Hunan Province, Zhuzhou, CHN, 412000
Zhuzhou Huarui Precision Tools Co Ltd is engaged in research and development, production and sales of cemented carbide tools, solid carbide end mills, welded and clamped cutting tools and cemented carbide material. The company's products are mainly used in aerospace, rail transit, automobile, energy, precision electronics, precision mold and other industries.
87GF Score

Get the complete analysis for SHSE:688059

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥76.01
Price
¥66.73
GF Value