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Hotai Motor CoTPE:2207 +2.71%70 Return-on-Tangible-Equity is 25.01% as of Dec. 2025, which is 8% above its 10-year median of 23.17. GuruFocus rates TPE:2207 with a GF Score™ of 70/100 and a GF Value™ of NT$687.26 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,283 Vehicles & Parts companies, Hotai Motor Co ranks better than 88.07% 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. Hotai Motor Co's annualized net income for the quarter that ended in Dec. 2025 was NT$20,212 Mil. Hotai Motor Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$80,802 Mil. Therefore, Hotai Motor Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 25.01%.
The historical rank and industry rank for Hotai Motor Co's Return-on-Tangible-Equity or its related term are showing as below:
TPE:2207'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -33.9 Med: 23.17 Max: 42.67
Current: 24.95
During the past 13 years, Hotai Motor Co's highest Return-on-Tangible-Equity was 42.67%. The lowest was -33.90%. And the median was 23.17%.
TPE:2207's Return-on-Tangible-Equity is ranked better than 88.07% of 1283
companies
in the Vehicles & Parts industry
Industry Median: 7.47
vs TPE:2207: 24.95
Hotai Motor Co (TPE:2207) 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.
Hotai Motor Co Return-on-Tangible-Equity Related Terms
Hotai Motor Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hotai Motor 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.
TPE:2207 vs CVNA, PAG, ALTB: Return-on-Tangible-Equity Comparison
For the Auto & Truck Dealerships subindustry, Hotai Motor 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.
Hotai Motor Co Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hotai Motor Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hotai Motor 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 (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 25.01% mean?
Hotai Motor Co (TPE:2207) has a Return-on-Tangible-Equity of 25.01% 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 Hotai Motor Co and its competitors. This is near median its historical median of 23.17. According to the industry distribution chart, Hotai Motor Co ranks #153 out of 1283 companies in the Vehicles & Parts industry, placing it in the top 11.9%.
Is Hotai Motor Co's Return-on-Tangible-Equity too high?
Hotai Motor Co's current Return-on-Tangible-Equity of 25.01% is near median its 10-year median of 23.17. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.47. Hotai Motor Co's value of 25.01% is 234.8% above this industry median. Based on the distribution chart, Hotai Motor Co ranks #153 out of 1283 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hotai Motor Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hotai Motor Co's Return-on-Tangible-Equity compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Hotai Motor Co ranks #153 out of 1283 companies for Return-on-Tangible-Equity. This places Hotai Motor Co in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.47. Hotai Motor Co's value of 25.01% is 234.8% above this benchmark. While the company's 10-year median is 23.17 vs. the industry median of 7.47, Hotai Motor 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 a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.47, based on 1,283 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. Hotai Motor Co's current Return-on-Tangible-Equity of 25.01% is 234.8% 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 Hotai Motor Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hotai Motor Co's current Return-on-Tangible-Equity is 25.01%, which is near median its own 10-year median of 23.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotai Motor Co stock overvalued right now?
Based on GuruFocus' analysis, Hotai Motor Co (TPE:2207) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$687.26, compared to a current price of NT$493.00 — trading 28.3% below its estimated fair value. The current Return-on-Tangible-Equity is 25.01%, which is near median its 10-year median of 23.17 and 234.8% above the Vehicles & Parts industry median of 7.47. Hotai Motor Co's overall GF Score™ is 70/100 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 Hotai Motor Co (TPE:2207), the current Return-on-Tangible-Equity is 25.01% 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 Hotai Motor Co (TPE:2207) Overvalued in 2026?
Based on GuruFocus' analysis, Hotai Motor Co stock appears to be undervalued.
The current stock price of NT$493.00 is trading 28.3% below its estimated GF Value™ of NT$687.26.
GuruFocus considers Hotai Motor Co to be Modestly Undervalued.
Key valuation signals for TPE:2207:
Return-on-Tangible-Equity: 25.01% (near median its 10-year median of 23.17)
GF Value™: NT$687.26 vs. price of NT$493.00 (28.3% below fair value)
Industry Position: 234.8% above the Vehicles & Parts median (#153 of 1283)
No single metric tells the full story. See the TPE:2207 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hotai Motor Co Ltd is engaged in import, trading, selling and repairing of vehicles and their parts, as well as installment sales and leases of vehicles, and sales of used vehicles and business of property insurance. The segments of the company include the Distributor of Toyota and Hino products segments, Installment trading, Leasing, and other segments. It has operations across both Taiwan and mainland China, with the vast majority of revenue derived domestically.
70GF Score
Get the complete analysis for TPE:2207
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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