Continental HoldingsTPE:3703 76 Return-on-Tangible-Equity is 14.81% as of Dec. 2025, which is 116% above its 10-year median of 6.87. GuruFocus rates TPE:3703 with a GF Score™ of 76/100 and a GF Value™ of NT$32.59 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,709 Construction companies, Continental Holdings ranks worse than 52.6% 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. Continental Holdings's annualized net income for the quarter that ended in Dec. 2025 was NT$2,910 Mil. Continental Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$19,648 Mil. Therefore, Continental Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 14.81%.
The historical rank and industry rank for Continental Holdings's Return-on-Tangible-Equity or its related term are showing as below:
TPE:3703'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.44 Med: 6.87 Max: 11.87
Current: 7.36
During the past 13 years, Continental Holdings's highest Return-on-Tangible-Equity was 11.87%. The lowest was 0.44%. And the median was 6.87%.
TPE:3703's Return-on-Tangible-Equity is ranked worse than 52.6% of 1709
companies
in the Construction industry
Industry Median: 8.21
vs TPE:3703: 7.36
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.
Continental Holdings Return-on-Tangible-Equity Related Terms
Continental Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Continental Holdings'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:3703 vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Continental Holdings'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.
Continental Holdings Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Continental Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Continental Holdings'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 14.81% mean?
Continental Holdings (TPE:3703) has a Return-on-Tangible-Equity of 14.81% 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 Continental Holdings and its competitors. This is 116% above median its historical median of 6.87. Over the past decade, Continental Holdings' Return-on-Tangible-Equity has ranged from 0.44 to 11.87. According to the industry distribution chart, Continental Holdings ranks #899 out of 1709 companies in the Construction industry, placing it in the top 52.6%.
Is Continental Holdings' Return-on-Tangible-Equity too high?
Continental Holdings' current Return-on-Tangible-Equity of 14.81% is 116% above median its 10-year median of 6.87. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 11.87. The Construction industry median Return-on-Tangible-Equity is 8.21. Continental Holdings' value of 14.81% is 80.4% above this industry median. Based on the distribution chart, Continental Holdings ranks #899 out of 1709 companies in the Construction industry, which is below the industry midpoint. Overall, Continental Holdings has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Continental Holdings' Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Continental Holdings ranks #899 out of 1709 companies for Return-on-Tangible-Equity. This places Continental Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.21. Continental Holdings' value of 14.81% is 80.4% above this benchmark. Historically, Continental Holdings' own Return-on-Tangible-Equity has ranged from 0.44 to 11.87 over the past decade. While the company's 10-year median is 6.87 vs. the industry median of 8.21, Continental Holdings 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,709 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. Continental Holdings's current Return-on-Tangible-Equity of 14.81% is 80.4% 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 Continental Holdings and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental Holdings's current Return-on-Tangible-Equity is 14.81%, which is 116% above median its own 10-year median of 6.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental Holdings stock overvalued right now?
Based on GuruFocus' analysis, Continental Holdings (TPE:3703) is currently considered Possible Value Trap. The stock's GF Value™ is NT$32.59, compared to a current price of NT$20.55 — trading 36.9% below its estimated fair value. The current Return-on-Tangible-Equity is 14.81%, which is 116% above median its 10-year median of 6.87 and 80.4% above the Construction industry median of 8.21. Continental Holdings' overall GF Score™ is 76/100 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 Continental Holdings (TPE:3703), the current Return-on-Tangible-Equity is 14.81% 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 Continental Holdings (TPE:3703) Overvalued in 2026?
Based on GuruFocus' analysis, Continental Holdings stock appears to be undervalued.
The current stock price of NT$20.55 is trading 36.9% below its estimated GF Value™ of NT$32.59.
GuruFocus considers Continental Holdings to be Possible Value Trap.
Key valuation signals for TPE:3703:
Return-on-Tangible-Equity: 14.81% (116% above median its 10-year median of 6.87)
GF Value™: NT$32.59 vs. price of NT$20.55 (36.9% below fair value)
Industry Position: 80.4% above the Construction median (#899 of 1709)
No single metric tells the full story. See the TPE:3703 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Continental Holdings Corp has an investment portfolio covers three business sectors: Construction Engineering, Real Estate Development, and Environmental Project Development & Water Treatment businesses. Its segments include Construction Engineering: civil construction and building construction; Real Estate Development: real estate development and lease; Environmental Project Development & Water Treatment: expertise in processing sewage, industrial wastewater, solid waste, etc; Investment: to supervise and monitor each operating segment's operation, and control and allocate each operating segment's operating resources. The majority of the revenue is derived from the Construction Engineering segment.
76GF Score
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