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Cheng LoongTPE:1904 70 Return-on-Tangible-Equity is 8.82% as of Dec. 2025, which is 8% above its 10-year median of 8.17. GuruFocus rates TPE:1904 with a GF Score™ of 70/100 and a GF Value™ of NT$25.95 (Modestly Undervalued). The stock has 12 warning signs investors should review. Among 279 Forest Products companies, Cheng Loong ranks better than 54.12% 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. Cheng Loong's annualized net income for the quarter that ended in Dec. 2025 was NT$2,538 Mil. Cheng Loong's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$28,787 Mil. Therefore, Cheng Loong's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.82%.
The historical rank and industry rank for Cheng Loong's Return-on-Tangible-Equity or its related term are showing as below:
TPE:1904'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.07 Med: 8.17 Max: 17.65
Current: 2.86
During the past 13 years, Cheng Loong's highest Return-on-Tangible-Equity was 17.65%. The lowest was 2.07%. And the median was 8.17%.
TPE:1904's Return-on-Tangible-Equity is ranked better than 54.12% of 279
companies
in the Forest Products industry
Industry Median: 2.21
vs TPE:1904: 2.86
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.
Cheng Loong Return-on-Tangible-Equity Related Terms
Cheng Loong Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Cheng Loong'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.
For the Paper & Paper Products subindustry, Cheng Loong'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.
Cheng Loong Return-on-Tangible-Equity vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Cheng Loong's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cheng Loong'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 8.82% mean?
Cheng Loong (TPE:1904) has a Return-on-Tangible-Equity of 8.82% 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 Cheng Loong and its competitors. This is near median its historical median of 8.17. Over the past decade, Cheng Loong's Return-on-Tangible-Equity has ranged from 2.07 to 17.65. According to the industry distribution chart, Cheng Loong ranks #128 out of 279 companies in the Forest Products industry, placing it in the top 45.9%.
Is Cheng Loong's Return-on-Tangible-Equity too high?
Cheng Loong's current Return-on-Tangible-Equity of 8.82% is near median its 10-year median of 8.17. Over the past 10 years, this metric has ranged from a low of 2.07 to a high of 17.65. The Forest Products industry median Return-on-Tangible-Equity is 2.21. Cheng Loong's value of 8.82% is 299.1% above this industry median. Based on the distribution chart, Cheng Loong ranks #128 out of 279 companies in the Forest Products industry, which is above the industry midpoint. Overall, Cheng Loong has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cheng Loong's Return-on-Tangible-Equity compare to competitors?
According to the Forest Products industry distribution chart, Cheng Loong ranks #128 out of 279 companies for Return-on-Tangible-Equity. This puts Cheng Loong in the upper half of its industry. The industry median Return-on-Tangible-Equity is 2.21. Cheng Loong's value of 8.82% is 299.1% above this benchmark. Historically, Cheng Loong's own Return-on-Tangible-Equity has ranged from 2.07 to 17.65 over the past decade. While the company's 10-year median is 8.17 vs. the industry median of 2.21, Cheng Loong 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 Forest Products company?
The median Return-on-Tangible-Equity among Forest Products companies is 2.21, based on 279 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. Cheng Loong's current Return-on-Tangible-Equity of 8.82% is 299.1% 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 Cheng Loong and its competitors. For the Forest Products industry, the median Return-on-Tangible-Equity is 2.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Loong's current Return-on-Tangible-Equity is 8.82%, which is near median its own 10-year median of 8.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Loong stock overvalued right now?
Based on GuruFocus' analysis, Cheng Loong (TPE:1904) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$25.95, compared to a current price of NT$22.30 — trading 14.1% below its estimated fair value. The current Return-on-Tangible-Equity is 8.82%, which is near median its 10-year median of 8.17 and 299.1% above the Forest Products industry median of 2.21. Cheng Loong's overall GF Score™ is 70/100 with 12 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 Cheng Loong (TPE:1904), the current Return-on-Tangible-Equity is 8.82% 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 Cheng Loong (TPE:1904) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Loong stock appears to be undervalued.
The current stock price of NT$22.30 is trading 14.1% below its estimated GF Value™ of NT$25.95.
GuruFocus considers Cheng Loong to be Modestly Undervalued.
Key valuation signals for TPE:1904:
Return-on-Tangible-Equity: 8.82% (near median its 10-year median of 8.17)
GF Value™: NT$25.95 vs. price of NT$22.30 (14.1% below fair value)
Industry Position: 299.1% above the Forest Products median (#128 of 279)
No single metric tells the full story. See the TPE:1904 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Loong Corp manufactures and sells a variety of paper products. The company is engaged in the manufacturing and sale of paper products, materials for paper products, corrugated cartons, and related products. It is also engaged in building commercial and residential premises for rent and sale in partnership with construction companies. The company generates a majority of its revenue from the manufacturing and sale of industrial paper, corrugated containers, and related products. Its geographical segments are Taiwan, which generates key revenue, China, and Southeast Asia.
70GF Score
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