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HitGenSHSE:688222 -4.72%90 Return-on-Tangible-Equity is 12.50% as of Mar. 2026, which is 160% above its 10-year median of 4.81. GuruFocus rates SHSE:688222 with a GF Score™ of 90/100 and a GF Value™ of ¥26.11 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,198 Biotechnology companies, HitGen ranks better than 85.98% 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. HitGen's annualized net income for the quarter that ended in Mar. 2026 was ¥166.0 Mil. HitGen's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥1,328.2 Mil. Therefore, HitGen's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.50%.
The historical rank and industry rank for HitGen's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:688222'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -29.77 Med: 4.81 Max: 27.78
Current: 9.29
During the past 10 years, HitGen's highest Return-on-Tangible-Equity was 27.78%. The lowest was -29.77%. And the median was 4.81%.
SHSE:688222's Return-on-Tangible-Equity is ranked better than 85.98% of 1198
companies
in the Biotechnology industry
Industry Median: -42.305
vs SHSE:688222: 9.29
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.
HitGen Return-on-Tangible-Equity Related Terms
HitGen Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for HitGen'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.
SHSE:688222 vs VRTX, REGN, RVMD: Return-on-Tangible-Equity Comparison
For the Biotechnology subindustry, HitGen'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.
HitGen Return-on-Tangible-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, HitGen's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HitGen'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 12.50% mean?
HitGen (SHSE:688222) has a Return-on-Tangible-Equity of 12.50% 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 HitGen and its competitors. This is 160% above median its historical median of 4.81. According to the industry distribution chart, HitGen ranks #168 out of 1198 companies in the Biotechnology industry, placing it in the top 14%.
Is HitGen's Return-on-Tangible-Equity too high?
HitGen's current Return-on-Tangible-Equity of 12.50% is 160% above median its 10-year median of 4.81. Based on the distribution chart, HitGen ranks #168 out of 1198 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, HitGen has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does HitGen's Return-on-Tangible-Equity compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, HitGen ranks #168 out of 1198 companies for Return-on-Tangible-Equity. This places HitGen in the top 14% of its industry — outperforming the majority of peers. 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 Biotechnology company?
A good Return-on-Tangible-Equity depends on the Biotechnology industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 HitGen and its competitors. HitGen's current Return-on-Tangible-Equity is 12.50%, which is 160% above median its own 10-year median of 4.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HitGen stock overvalued right now?
Based on GuruFocus' analysis, HitGen (SHSE:688222) is currently considered Fairly Valued. The stock's GF Value™ is ¥26.11, compared to a current price of ¥28.26 — trading 8.2% above its estimated fair value. The current Return-on-Tangible-Equity is 12.50%, which is 160% above median its 10-year median of 4.81. HitGen's overall GF Score™ is 90/100 with 1 warning sign 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 HitGen (SHSE:688222), the current Return-on-Tangible-Equity is 12.50% 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 HitGen (SHSE:688222) Overvalued in 2026?
Based on GuruFocus' analysis, HitGen stock appears to be overvalued.
The current stock price of ¥28.26 is trading 8.2% above its estimated GF Value™ of ¥26.11.
GuruFocus considers HitGen to be Fairly Valued.
Key valuation signals for SHSE:688222:
Return-on-Tangible-Equity: 12.50% (160% above median its 10-year median of 4.81)
GF Value™: ¥26.11 vs. price of ¥28.26 (8.2% above fair value)
No single metric tells the full story. See the SHSE:688222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HitGen Inc is dedicated to building a world-class biopharmaceutical enterprise. Its mission is to advance human health and quality of life. It provides therapeutic solutions to address unmet medical needs. Centered on its internationally DEL (DNA-encoded Library) technology, the Company has expanded into Fragment-Based Drug Discovery and Structure-Based Drug Design and a suite of complementary platforms based on Oligonucleotide-based Therapeutics, Targeted Proximity Drugs, and Cyclic Peptidomimetics. The group has developed HAILO, a proprietary "DEL+AI+Automation" molecular optimization platform, thereby establishing a distinctive novel molecule discovery engine that delivers both therapeutic molecules and tool molecules to the world-wide pharmaceutical industry.
90GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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