Hangzhou Raycloud Technology Co (SHSE:688365) Return-on-Tangible-Equity: 5.35% (As of Mar. 2026) — 57% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SHSE:688365 Hangzhou Raycloud Technology Co Ltd SHSE:688365
65 GF Score
Price ¥13.16
GF Value ¥12.98
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is Hangzhou Raycloud Technology Co Return-on-Tangible-Equity?

Hangzhou Raycloud Technology Co SHSE:688365 -2.30% 65 Return-on-Tangible-Equity is 5.35% as of Mar. 2026, which is 57% above its 10-year median of 3.41. GuruFocus rates SHSE:688365 with a GF Score™ of 65/100 and a GF Value™ of ¥12.98 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,485 Software companies, Hangzhou Raycloud Technology Co ranks worse than 69.34% 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. Hangzhou Raycloud Technology Co's annualized net income for the quarter that ended in Mar. 2026 was ¥24.1 Mil. Hangzhou Raycloud Technology Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥450.0 Mil. Therefore, Hangzhou Raycloud Technology Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.35%.

The historical rank and industry rank for Hangzhou Raycloud Technology Co's Return-on-Tangible-Equity or its related term are showing as below:

SHSE:688365' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -25.95   Med: 3.41   Max: 27.32
Current: -1.49

During the past 10 years, Hangzhou Raycloud Technology Co's highest Return-on-Tangible-Equity was 27.32%. The lowest was -25.95%. And the median was 3.41%.

SHSE:688365's Return-on-Tangible-Equity is ranked worse than
69.34% of 2485 companies
in the Software industry
Industry Median: 8.99 vs SHSE:688365: -1.49

Hangzhou Raycloud Technology Co  (SHSE:688365) 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.


Hangzhou Raycloud Technology Co Return-on-Tangible-Equity Related Terms


Hangzhou Raycloud Technology Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Hangzhou Raycloud Technology 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.

Hangzhou Raycloud Technology Co Return-on-Tangible-Equity Chart

Hangzhou Raycloud Technology Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.61 -25.95 -2.83 -12.09 -4.83

Hangzhou Raycloud Technology 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 -8.31 0.63 -2.67 -10.01 5.35

SHSE:688365 vs QH, SHOP, UBER: Return-on-Tangible-Equity Comparison

For the Software - Application subindustry, Hangzhou Raycloud Technology 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.


Hangzhou Raycloud Technology Co Return-on-Tangible-Equity vs Software Industry

For the Software industry and Technology sector, Hangzhou Raycloud Technology Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Hangzhou Raycloud Technology Co's Return-on-Tangible-Equity falls into.


SHSE:688365
65GF Score
Hangzhou Raycloud Technology Co Ltd SHSE:688365
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hangzhou Raycloud Technology Co Return-on-Tangible-Equity Calculation

Hangzhou Raycloud Technology 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 )
=-26.082/( (632.341+448.349 )/ 2 )
=-26.082/540.345
=-4.83 %

Hangzhou Raycloud Technology 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 )
=24.084/( (448.349+451.568)/ 2 )
=24.084/449.9585
=5.35 %

* 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 5.35% mean?
Hangzhou Raycloud Technology Co (SHSE:688365) has a Return-on-Tangible-Equity of 5.35% 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 Hangzhou Raycloud Technology Co and its competitors. This is 57% above median its historical median of 3.41. According to the industry distribution chart, Hangzhou Raycloud Technology Co ranks #1723 out of 2485 companies in the Software industry, placing it in the top 69.3%.
Is Hangzhou Raycloud Technology Co's Return-on-Tangible-Equity too high?
Hangzhou Raycloud Technology Co's current Return-on-Tangible-Equity of 5.35% is 57% above median its 10-year median of 3.41. The Software industry median Return-on-Tangible-Equity is 8.99. Hangzhou Raycloud Technology Co's value of 5.35% is 40.5% below this industry median. Based on the distribution chart, Hangzhou Raycloud Technology Co ranks #1723 out of 2485 companies in the Software industry, which is below the industry midpoint. Overall, Hangzhou Raycloud Technology Co has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou Raycloud Technology Co's Return-on-Tangible-Equity compare to QH and SHOP?
According to the Software industry distribution chart, Hangzhou Raycloud Technology Co ranks #1723 out of 2485 companies for Return-on-Tangible-Equity. This places Hangzhou Raycloud Technology Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.99. Hangzhou Raycloud Technology Co's value of 5.35% is 40.5% below this benchmark. While the company's 10-year median is 3.41 vs. the industry median of 8.99, Hangzhou Raycloud Technology Co has consistently been below 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 a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.99, based on 2,485 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. Hangzhou Raycloud Technology Co's current Return-on-Tangible-Equity of 5.35% is 40.5% below 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 Hangzhou Raycloud Technology Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou Raycloud Technology Co's current Return-on-Tangible-Equity is 5.35%, which is 57% above median its own 10-year median of 3.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou Raycloud Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou Raycloud Technology Co (SHSE:688365) is currently considered Fairly Valued. The stock's GF Value™ is ¥12.98, compared to a current price of ¥13.16 — trading 1.4% above its estimated fair value. The current Return-on-Tangible-Equity is 5.35%, which is 57% above median its 10-year median of 3.41 and 40.5% below the Software industry median of 8.99. Hangzhou Raycloud Technology Co's overall GF Score™ is 65/100 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 Hangzhou Raycloud Technology Co (SHSE:688365), the current Return-on-Tangible-Equity is 5.35% 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 Hangzhou Raycloud Technology Co (SHSE:688365) Overvalued in 2026?

Based on GuruFocus' analysis, Hangzhou Raycloud Technology Co stock appears to be overvalued. The current stock price of ¥13.16 is trading 1.4% above its estimated GF Value™ of ¥12.98. GuruFocus considers Hangzhou Raycloud Technology Co to be Fairly Valued.

Key valuation signals for SHSE:688365:

  • Return-on-Tangible-Equity: 5.35% (57% above median its 10-year median of 3.41)
  • GF Value™: ¥12.98 vs. price of ¥13.16 (1.4% above fair value)
  • GF Score™: 65/100 with 4 warning signs
  • Industry Position: 40.5% below the Software median (#1723 of 2485)

No single metric tells the full story. See the SHSE:688365 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hangzhou Raycloud Technology Co Business Description

Address No.588 Jiangnan Avenue, 11th Floor, Main Building, Hengxin Building, Binjiang District, Zhejiang Province, Hangzhou, CHN, 310052
Hangzhou Raycloud Technology Co Ltd is an e-commerce software and service technology company. It provides value-added products and services such as SaaS products, supporting hardware, operating services, and CRM SMS for e-commerce merchants based on e-commerce platforms. Its products and services include super manager, courier assistant, wangdian transaction, wangdian data, merchandise, prosperous store promotion, super store manager-cross-border edition, super express, super commodity, super deal and seller network.
65GF Score

Get the complete analysis for SHSE:688365

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

¥13.16
Price
¥12.98
GF Value