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Cathay Chemical WorksTPE:1713 -0.41%74 Return-on-Tangible-Equity is 21.35% as of Dec. 2025, which is 266% above its 10-year median of 5.83. GuruFocus rates TPE:1713 with a GF Score™ of 74/100 and a GF Value™ of NT$42.74 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,570 Chemicals companies, Cathay Chemical Works ranks better than 82.29% 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. Cathay Chemical Works's annualized net income for the quarter that ended in Dec. 2025 was NT$791.4 Mil. Cathay Chemical Works's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$3,706.5 Mil. Therefore, Cathay Chemical Works's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 21.35%.
The historical rank and industry rank for Cathay Chemical Works's Return-on-Tangible-Equity or its related term are showing as below:
TPE:1713'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.22 Med: 5.83 Max: 43.26
Current: 14.87
During the past 13 years, Cathay Chemical Works's highest Return-on-Tangible-Equity was 43.26%. The lowest was 3.22%. And the median was 5.83%.
TPE:1713's Return-on-Tangible-Equity is ranked better than 82.29% of 1570
companies
in the Chemicals industry
Industry Median: 5.77
vs TPE:1713: 14.87
Cathay Chemical Works (TPE:1713) 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.
Cathay Chemical Works Return-on-Tangible-Equity Related Terms
Cathay Chemical Works Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Cathay Chemical Works'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.
Cathay Chemical Works Return-on-Tangible-Equity Chart
TPE:1713 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Cathay Chemical Works'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.
Cathay Chemical Works Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cathay Chemical Works's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cathay Chemical Works'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 (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 21.35% mean?
Cathay Chemical Works (TPE:1713) has a Return-on-Tangible-Equity of 21.35% 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 Cathay Chemical Works and its competitors. This is 266% above median its historical median of 5.83. Over the past decade, Cathay Chemical Works' Return-on-Tangible-Equity has ranged from 3.22 to 43.26. According to the industry distribution chart, Cathay Chemical Works ranks #278 out of 1570 companies in the Chemicals industry, placing it in the top 17.7%.
Is Cathay Chemical Works' Return-on-Tangible-Equity too high?
Cathay Chemical Works' current Return-on-Tangible-Equity of 21.35% is 266% above median its 10-year median of 5.83. Over the past 10 years, this metric has ranged from a low of 3.22 to a high of 43.26. The Chemicals industry median Return-on-Tangible-Equity is 5.77. Cathay Chemical Works' value of 21.35% is 270% above this industry median. Based on the distribution chart, Cathay Chemical Works ranks #278 out of 1570 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Cathay Chemical Works has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cathay Chemical Works' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Cathay Chemical Works ranks #278 out of 1570 companies for Return-on-Tangible-Equity. This places Cathay Chemical Works in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.77. Cathay Chemical Works' value of 21.35% is 270% above this benchmark. Historically, Cathay Chemical Works' own Return-on-Tangible-Equity has ranged from 3.22 to 43.26 over the past decade. While the company's 10-year median is 5.83 vs. the industry median of 5.77, Cathay Chemical Works 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 a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.77, based on 1,570 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. Cathay Chemical Works's current Return-on-Tangible-Equity of 21.35% is 270% 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 Cathay Chemical Works and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Chemical Works's current Return-on-Tangible-Equity is 21.35%, which is 266% above median its own 10-year median of 5.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Chemical Works stock overvalued right now?
Based on GuruFocus' analysis, Cathay Chemical Works (TPE:1713) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$42.74, compared to a current price of NT$48.20 — trading 12.8% above its estimated fair value. The current Return-on-Tangible-Equity is 21.35%, which is 266% above median its 10-year median of 5.83 and 270% above the Chemicals industry median of 5.77. Cathay Chemical Works' overall GF Score™ is 74/100 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 Cathay Chemical Works (TPE:1713), the current Return-on-Tangible-Equity is 21.35% 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 Cathay Chemical Works (TPE:1713) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Chemical Works stock appears to be overvalued.
The current stock price of NT$48.20 is trading 12.8% above its estimated GF Value™ of NT$42.74.
GuruFocus considers Cathay Chemical Works to be Modestly Overvalued.
Key valuation signals for TPE:1713:
Return-on-Tangible-Equity: 21.35% (266% above median its 10-year median of 5.83)
GF Value™: NT$42.74 vs. price of NT$48.20 (12.8% above fair value)
Industry Position: 270% above the Chemicals median (#278 of 1570)
No single metric tells the full story. See the TPE:1713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Chemical Works Inc Company's mainly business is the manufacture and sale of sodium hydrosulfite, zinc oxide, sodium formaldehyde sulfoxylate, zinc dust and so on. It is the sole operating department. The company has presence in Taiwan, Asia, America, Europe, New Zealand and Australia. The majority of revenue comes from Taiwan.
74GF Score
Get the complete analysis for TPE:1713
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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