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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. Honghua Group's annualized net income for the quarter that ended in Dec. 2025 was €0.3 Mil. Honghua Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €326.3 Mil. Therefore, Honghua Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 0.09%.
The historical rank and industry rank for Honghua Group's Return-on-Tangible-Equity or its related term are showing as below:
STU:4HB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -33.8 Med: -7.21 Max: 2.7
Current: 1.43
During the past 13 years, Honghua Group's highest Return-on-Tangible-Equity was 2.70%. The lowest was -33.80%. And the median was -7.21%.
STU:4HB's Return-on-Tangible-Equity is ranked worse than 64.48% of 943
companies
in the Oil & Gas industry
Industry Median: 6.78
vs STU:4HB: 1.43
Honghua Group (STU:4HB) 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.
Honghua Group Return-on-Tangible-Equity Related Terms
Honghua Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Honghua Group'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.
STU:4HB vs SLB, BKR, HAL: Return-on-Tangible-Equity Comparison
For the Oil & Gas Equipment & Services subindustry, Honghua Group'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.
Honghua Group Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Honghua Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Honghua Group'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.09% mean?
Honghua Group (STU:4HB) has a Return-on-Tangible-Equity of 0.09% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Honghua Group and its competitors. According to the industry distribution chart, Honghua Group ranks #608 out of 943 companies in the Oil & Gas industry, placing it in the top 64.5%.
Is Honghua Group's Return-on-Tangible-Equity too high?
Honghua Group's current Return-on-Tangible-Equity is 0.09%. The Oil & Gas industry median Return-on-Tangible-Equity is 6.78. Honghua Group's value of 0.09% is 98.7% below this industry median. Based on the distribution chart, Honghua Group ranks #608 out of 943 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Honghua Group has a GF Score™ of 36/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honghua Group's Return-on-Tangible-Equity compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Honghua Group ranks #608 out of 943 companies for Return-on-Tangible-Equity. This places Honghua Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.78. Honghua Group's value of 0.09% is 98.7% below this benchmark. 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 Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.78, based on 943 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. Honghua Group's current Return-on-Tangible-Equity of 0.09% is 98.7% 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 Honghua Group and its competitors. For the Oil & Gas 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. Honghua Group's current Return-on-Tangible-Equity is 0.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honghua Group stock overvalued right now?
Based on GuruFocus' analysis, Honghua Group (STU:4HB) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.01, compared to a current price of €0.01 — trading 30% above its estimated fair value. The current Return-on-Tangible-Equity is 0.09% and 98.7% below the Oil & Gas industry median of 6.78. Honghua Group's overall GF Score™ is 36/100 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 Honghua Group (STU:4HB), the current Return-on-Tangible-Equity is 0.09% as of Dec. 2025. 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 Honghua Group (STU:4HB) Overvalued in 2026?
Based on GuruFocus' analysis, Honghua Group stock appears to be overvalued.
The current stock price of €0.01 is trading 30% above its estimated GF Value™ of €0.01.
GuruFocus considers Honghua Group to be Modestly Overvalued.
Key valuation signals for STU:4HB:
Return-on-Tangible-Equity: 0.09%
GF Value™: €0.01 vs. price of €0.01 (30% above fair value)
Industry Position: 98.7% below the Oil & Gas median (#608 of 943)
No single metric tells the full story. See the STU:4HB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honghua Group Ltd is an oil and gas exploration and development equipment manufacturing and drilling engineering services company. Its product portfolio includes land drilling rigs, electric fracturing equipment, core parts and components of drilling and completion equipment, offshore engineering equipment manufacturing, drilling engineering services, digital products for drilling and completion, as well as new energy equipment and comprehensive services for oil and gas fields, providing customers with a full products and services for energy development. Its segments include land drilling rigs, parts and components, and others; drilling engineering services; fracturing services; and offshore engineering. The land drilling rigs segment derives the majority of the revenue.
36GF Score
Get the complete analysis for STU:4HB
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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