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Zyxel GroupTPE:3704 -2.41%74 Return-on-Tangible-Equity is 6.33% as of Dec. 2025, which is 15% above its 10-year median of 5.51. GuruFocus rates TPE:3704 with a GF Score™ of 74/100 and a GF Value™ of NT$36.91 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,387 Hardware companies, Zyxel Group ranks better than 51.95% 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. Zyxel Group's annualized net income for the quarter that ended in Dec. 2025 was NT$711 Mil. Zyxel Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$11,232 Mil. Therefore, Zyxel Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 6.33%.
The historical rank and industry rank for Zyxel Group's Return-on-Tangible-Equity or its related term are showing as below:
TPE:3704'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8 Med: 5.51 Max: 17.77
Current: 5.78
During the past 13 years, Zyxel Group's highest Return-on-Tangible-Equity was 17.77%. The lowest was -8.00%. And the median was 5.51%.
TPE:3704's Return-on-Tangible-Equity is ranked better than 51.95% of 2387
companies
in the Hardware industry
Industry Median: 5.28
vs TPE:3704: 5.78
Zyxel Group (TPE:3704) 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.
Zyxel Group Return-on-Tangible-Equity Related Terms
Zyxel Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zyxel 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.
TPE:3704 vs CSCO, CIEN, MSI: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, Zyxel 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.
Zyxel Group Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Zyxel Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zyxel 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 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 6.33% mean?
Zyxel Group (TPE:3704) has a Return-on-Tangible-Equity of 6.33% 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 Zyxel Group and its competitors. This is 15% above median its historical median of 5.51. According to the industry distribution chart, Zyxel Group ranks #1147 out of 2387 companies in the Hardware industry, placing it in the top 48.1%.
Is Zyxel Group's Return-on-Tangible-Equity too high?
Zyxel Group's current Return-on-Tangible-Equity of 6.33% is 15% above median its 10-year median of 5.51. The Hardware industry median Return-on-Tangible-Equity is 5.28. Zyxel Group's value of 6.33% is 19.9% above this industry median. Based on the distribution chart, Zyxel Group ranks #1147 out of 2387 companies in the Hardware industry, which is above the industry midpoint. Overall, Zyxel Group has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zyxel Group's Return-on-Tangible-Equity compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Zyxel Group ranks #1147 out of 2387 companies for Return-on-Tangible-Equity. This puts Zyxel Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.28. Zyxel Group's value of 6.33% is 19.9% above this benchmark. While the company's 10-year median is 5.51 vs. the industry median of 5.28, Zyxel Group 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.28, based on 2,387 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. Zyxel Group's current Return-on-Tangible-Equity of 6.33% is 19.9% 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 Zyxel Group and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zyxel Group's current Return-on-Tangible-Equity is 6.33%, which is 15% above median its own 10-year median of 5.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zyxel Group stock overvalued right now?
Based on GuruFocus' analysis, Zyxel Group (TPE:3704) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$36.91, compared to a current price of NT$48.65 — trading 31.8% above its estimated fair value. The current Return-on-Tangible-Equity is 6.33%, which is 15% above median its 10-year median of 5.51 and 19.9% above the Hardware industry median of 5.28. Zyxel Group's overall GF Score™ is 74/100 with 5 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 Zyxel Group (TPE:3704), the current Return-on-Tangible-Equity is 6.33% 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 Zyxel Group (TPE:3704) Overvalued in 2026?
Based on GuruFocus' analysis, Zyxel Group stock appears to be overvalued.
The current stock price of NT$48.65 is trading 31.8% above its estimated GF Value™ of NT$36.91.
GuruFocus considers Zyxel Group to be Significantly Overvalued.
Key valuation signals for TPE:3704:
Return-on-Tangible-Equity: 6.33% (15% above median its 10-year median of 5.51)
GF Value™: NT$36.91 vs. price of NT$48.65 (31.8% above fair value)
Industry Position: 19.9% above the Hardware median (#1147 of 2387)
No single metric tells the full story. See the TPE:3704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zyxel Group Corp is a Taiwan-based company that offers communications and networking products. It produces wifi systems, wireless extenders, home routers, cloud access cameras, switches, power and adapters, personal cloud storage, and security appliances and services. Geographically, it covers the United States, France, and other countries. It has four reportable segments: brand business segment, channel business segment, product business segment, and investment segment.
74GF Score
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