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Zhejiang Headman Machinery CoSHSE:688577 +0.51%81 Return-on-Tangible-Equity is 8.07% as of Mar. 2026, which is 14% below its 10-year median of 9.34. GuruFocus rates SHSE:688577 with a GF Score™ of 81/100 and a GF Value™ of ¥34.76 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,974 Industrial Products companies, Zhejiang Headman Machinery Co ranks better than 52.72% 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. Zhejiang Headman Machinery Co's annualized net income for the quarter that ended in Mar. 2026 was ¥66.3 Mil. Zhejiang Headman Machinery Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥821.6 Mil. Therefore, Zhejiang Headman Machinery Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.07%.
The historical rank and industry rank for Zhejiang Headman Machinery Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:688577'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.01 Med: 9.34 Max: 27.09
Current: 7.36
During the past 13 years, Zhejiang Headman Machinery Co's highest Return-on-Tangible-Equity was 27.09%. The lowest was 3.01%. And the median was 9.34%.
SHSE:688577's Return-on-Tangible-Equity is ranked better than 52.72% of 2974
companies
in the Industrial Products industry
Industry Median: 6.775
vs SHSE:688577: 7.36
Zhejiang Headman Machinery Co (SHSE:688577) 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 Headman Machinery Co Return-on-Tangible-Equity Related Terms
Zhejiang Headman Machinery Co 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 Headman Machinery Co Return-on-Tangible-Equity Chart
SHSE:688577 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Zhejiang Headman Machinery 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.
Zhejiang Headman Machinery Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zhejiang Headman Machinery Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zhejiang Headman Machinery 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 8.07% mean?
Zhejiang Headman Machinery Co (SHSE:688577) has a Return-on-Tangible-Equity of 8.07% 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 Headman Machinery Co and its competitors. This is 14% below median its historical median of 9.34. Over the past decade, Zhejiang Headman Machinery Co's Return-on-Tangible-Equity has ranged from 3.01 to 27.09. According to the industry distribution chart, Zhejiang Headman Machinery Co ranks #1406 out of 2974 companies in the Industrial Products industry, placing it in the top 47.3%.
Is Zhejiang Headman Machinery Co's Return-on-Tangible-Equity too high?
Zhejiang Headman Machinery Co's current Return-on-Tangible-Equity of 8.07% is 14% below median its 10-year median of 9.34. Over the past 10 years, this metric has ranged from a low of 3.01 to a high of 27.09. The Industrial Products industry median Return-on-Tangible-Equity is 6.78. Zhejiang Headman Machinery Co's value of 8.07% is 19.1% above this industry median. Based on the distribution chart, Zhejiang Headman Machinery Co ranks #1406 out of 2974 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Zhejiang Headman Machinery Co has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Headman Machinery Co's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Zhejiang Headman Machinery Co ranks #1406 out of 2974 companies for Return-on-Tangible-Equity. This puts Zhejiang Headman Machinery Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.78. Zhejiang Headman Machinery Co's value of 8.07% is 19.1% above this benchmark. Historically, Zhejiang Headman Machinery Co's own Return-on-Tangible-Equity has ranged from 3.01 to 27.09 over the past decade. While the company's 10-year median is 9.34 vs. the industry median of 6.78, Zhejiang Headman Machinery 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. Zhejiang Headman Machinery Co's current Return-on-Tangible-Equity of 8.07% is 19.1% 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 Zhejiang Headman Machinery 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. Zhejiang Headman Machinery Co's current Return-on-Tangible-Equity is 8.07%, which is 14% below median its own 10-year median of 9.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Headman Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Headman Machinery Co (SHSE:688577) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥34.76, compared to a current price of ¥39.20 — trading 12.8% above its estimated fair value. The current Return-on-Tangible-Equity is 8.07%, which is 14% below median its 10-year median of 9.34 and 19.1% above the Industrial Products industry median of 6.78. Zhejiang Headman Machinery Co's overall GF Score™ is 81/100 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 Zhejiang Headman Machinery Co (SHSE:688577), the current Return-on-Tangible-Equity is 8.07% 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 Headman Machinery Co (SHSE:688577) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Headman Machinery Co stock appears to be overvalued.
The current stock price of ¥39.20 is trading 12.8% above its estimated GF Value™ of ¥34.76.
GuruFocus considers Zhejiang Headman Machinery Co to be Modestly Overvalued.
Key valuation signals for SHSE:688577:
Return-on-Tangible-Equity: 8.07% (14% below median its 10-year median of 9.34)
GF Value™: ¥34.76 vs. price of ¥39.20 (12.8% above fair value)
Industry Position: 19.1% above the Industrial Products median (#1406 of 2974)
No single metric tells the full story. See the SHSE:688577 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Headman Machinery Co Business Description
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