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Hotai Finance CoTPE:6592 +0.51%87 Return-on-Tangible-Equity is 10.57% as of Dec. 2025, which is 25% below its 10-year median of 14.04. GuruFocus rates TPE:6592 with a GF Score™ of 87/100 and a GF Value™ of NT$81.40 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 525 Credit Services companies, Hotai Finance Co ranks better than 57.9% 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 Finance Co's annualized net income for the quarter that ended in Dec. 2025 was NT$3,881 Mil. Hotai Finance Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$36,723 Mil. Therefore, Hotai Finance Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.57%.
The historical rank and industry rank for Hotai Finance Co's Return-on-Tangible-Equity or its related term are showing as below:
TPE:6592'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.43 Med: 14.04 Max: 17.79
Current: 9.3
During the past 10 years, Hotai Finance Co's highest Return-on-Tangible-Equity was 17.79%. The lowest was 8.43%. And the median was 14.04%.
TPE:6592's Return-on-Tangible-Equity is ranked better than 57.9% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs TPE:6592: 9.30
Hotai Finance Co (TPE:6592) 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 Finance Co Return-on-Tangible-Equity Related Terms
Hotai Finance Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hotai Finance 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:6592 vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Hotai Finance 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 Finance Co Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Hotai Finance Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hotai Finance 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 10.57% mean?
Hotai Finance Co (TPE:6592) has a Return-on-Tangible-Equity of 10.57% 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 Finance Co and its competitors. This is 25% below median its historical median of 14.04. Over the past decade, Hotai Finance Co's Return-on-Tangible-Equity has ranged from 8.43 to 17.79. According to the industry distribution chart, Hotai Finance Co ranks #221 out of 525 companies in the Credit Services industry, placing it in the top 42.1%.
Is Hotai Finance Co's Return-on-Tangible-Equity too high?
Hotai Finance Co's current Return-on-Tangible-Equity of 10.57% is 25% below median its 10-year median of 14.04. Over the past 10 years, this metric has ranged from a low of 8.43 to a high of 17.79. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Hotai Finance Co's value of 10.57% is 50.8% above this industry median. Based on the distribution chart, Hotai Finance Co ranks #221 out of 525 companies in the Credit Services industry, which is above the industry midpoint. Overall, Hotai Finance Co has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hotai Finance Co's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Hotai Finance Co ranks #221 out of 525 companies for Return-on-Tangible-Equity. This puts Hotai Finance Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.01. Hotai Finance Co's value of 10.57% is 50.8% above this benchmark. Historically, Hotai Finance Co's own Return-on-Tangible-Equity has ranged from 8.43 to 17.79 over the past decade. While the company's 10-year median is 14.04 vs. the industry median of 7.01, Hotai Finance 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 Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 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 Finance Co's current Return-on-Tangible-Equity of 10.57% is 50.8% 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 Finance Co and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hotai Finance Co's current Return-on-Tangible-Equity is 10.57%, which is 25% below median its own 10-year median of 14.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotai Finance Co stock overvalued right now?
Based on GuruFocus' analysis, Hotai Finance Co (TPE:6592) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$81.40, compared to a current price of NT$59.70 — trading 26.7% below its estimated fair value. The current Return-on-Tangible-Equity is 10.57%, which is 25% below median its 10-year median of 14.04 and 50.8% above the Credit Services industry median of 7.01. Hotai Finance Co's overall GF Score™ is 87/100 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 Finance Co (TPE:6592), the current Return-on-Tangible-Equity is 10.57% 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 Finance Co (TPE:6592) Overvalued in 2026?
Based on GuruFocus' analysis, Hotai Finance Co stock appears to be undervalued.
The current stock price of NT$59.70 is trading 26.7% below its estimated GF Value™ of NT$81.40.
GuruFocus considers Hotai Finance Co to be Modestly Undervalued.
Key valuation signals for TPE:6592:
Return-on-Tangible-Equity: 10.57% (25% below median its 10-year median of 14.04)
GF Value™: NT$81.40 vs. price of NT$59.70 (26.7% below fair value)
Industry Position: 50.8% above the Credit Services median (#221 of 525)
No single metric tells the full story. See the TPE:6592 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hotai Finance Co Ltd is a Taiwan-based full-service financing company. It is engaged in the installment sales and leases of vehicles and equipment. The company offers products and services such as an Installment loan for a new car, used car, motorcycle & scooter, and others. The company's geographical segment consists of Taiwan and China. The company generates the majority of its revenue from Taiwan.
87GF Score
Get the complete analysis for TPE:6592
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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