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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. Zhejiang He Chuan Technology's annualized net income for the quarter that ended in Mar. 2026 was ¥-23 Mil. Zhejiang He Chuan Technology's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥1,128 Mil. Therefore, Zhejiang He Chuan Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -2.00%.
The historical rank and industry rank for Zhejiang He Chuan Technology's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:688320'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -12.02 Med: 11.49 Max: 26.35
Current: -9.3
During the past 8 years, Zhejiang He Chuan Technology's highest Return-on-Tangible-Equity was 26.35%. The lowest was -12.02%. And the median was 11.49%.
SHSE:688320's Return-on-Tangible-Equity is ranked worse than 82.17% of 2384
companies
in the Hardware industry
Industry Median: 5.32
vs SHSE:688320: -9.30
Zhejiang He Chuan Technology (SHSE:688320) 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.
Zhejiang He Chuan Technology Return-on-Tangible-Equity Related Terms
Zhejiang He Chuan Technology Return-on-Tangible-Equity Historical Data
* 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.
Zhejiang He Chuan Technology Return-on-Tangible-Equity Chart
SHSE:688320 vs DELL, ANET, SNDK: Return-on-Tangible-Equity Comparison
For the Computer Hardware subindustry, Zhejiang He Chuan Technology'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.
Zhejiang He Chuan Technology Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Zhejiang He Chuan Technology's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zhejiang He Chuan Technology'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 -2.00% mean?
Zhejiang He Chuan Technology (SHSE:688320) has a Return-on-Tangible-Equity of -2.00% 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 Zhejiang He Chuan Technology and its competitors. According to the industry distribution chart, Zhejiang He Chuan Technology ranks #1959 out of 2384 companies in the Hardware industry, placing it in the top 82.2%.
Is Zhejiang He Chuan Technology's Return-on-Tangible-Equity too high?
Zhejiang He Chuan Technology's current Return-on-Tangible-Equity is -2.00%. Based on the distribution chart, Zhejiang He Chuan Technology ranks #1959 out of 2384 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Zhejiang He Chuan Technology has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang He Chuan Technology's Return-on-Tangible-Equity compare to DELL and ANET?
According to the Hardware industry distribution chart, Zhejiang He Chuan Technology ranks #1959 out of 2384 companies for Return-on-Tangible-Equity. This places Zhejiang He Chuan Technology in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.32. 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 5.32, 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. 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 Zhejiang He Chuan Technology and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang He Chuan Technology's current Return-on-Tangible-Equity is -2.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang He Chuan Technology stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang He Chuan Technology (SHSE:688320) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥42.49, compared to a current price of ¥27.28 — trading 35.8% below its estimated fair value. The current Return-on-Tangible-Equity is -2.00%. Zhejiang He Chuan Technology's overall GF Score™ is 70/100 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 Zhejiang He Chuan Technology (SHSE:688320), the current Return-on-Tangible-Equity is -2.00% 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 Zhejiang He Chuan Technology (SHSE:688320) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang He Chuan Technology stock appears to be undervalued.
The current stock price of ¥27.28 is trading 35.8% below its estimated GF Value™ of ¥42.49.
GuruFocus considers Zhejiang He Chuan Technology to be Significantly Undervalued.
Key valuation signals for SHSE:688320:
Return-on-Tangible-Equity: -2.00%
GF Value™: ¥42.49 vs. price of ¥27.28 (35.8% below fair value)
No single metric tells the full story. See the SHSE:688320 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang He Chuan Technology Corp Ltd is engaged in the research and development, production, sales and application integration of industrial automation products. The company provides information such as Programmable logic controllers (PLCs), Servo systems (servo drives and servo motors), Touch screens, frequency inverters, Control sensors and motion-control chips, CNC multi-axis controllers, robotic controllers, linear modules, and vision systems.
70GF Score
Get the complete analysis for SHSE:688320
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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