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Song Chuan Precision CoTPE:7788 -9.96%18 Return-on-Tangible-Equity is 8.23% as of Dec. 2025, which is 22% below its 10-year median of 10.55. GuruFocus rates TPE:7788 with a GF Score™ of 18/100. The stock has 3 warning signs investors should review. Among 2,969 Industrial Products companies, Song Chuan Precision Co ranks worse than 56.21% 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. Song Chuan Precision Co's annualized net income for the quarter that ended in Dec. 2025 was NT$444 Mil. Song Chuan Precision Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$5,392 Mil. Therefore, Song Chuan Precision Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.23%.
The historical rank and industry rank for Song Chuan Precision Co's Return-on-Tangible-Equity or its related term are showing as below:
TPE:7788'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.94 Med: 10.55 Max: 24.38
Current: 5.29
During the past 6 years, Song Chuan Precision Co's highest Return-on-Tangible-Equity was 24.38%. The lowest was 4.94%. And the median was 10.55%.
TPE:7788's Return-on-Tangible-Equity is ranked worse than 56.21% of 2969
companies
in the Industrial Products industry
Industry Median: 6.72
vs TPE:7788: 5.29
Song Chuan Precision Co (TPE:7788) 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.
Song Chuan Precision Co Return-on-Tangible-Equity Related Terms
Song Chuan Precision Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Song Chuan Precision 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.
Song Chuan Precision Co Return-on-Tangible-Equity Chart
TPE:7788 vs VRT, BE: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Song Chuan Precision 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.
Song Chuan Precision Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Song Chuan Precision Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Song Chuan Precision 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 8.23% mean?
Song Chuan Precision Co (TPE:7788) has a Return-on-Tangible-Equity of 8.23% 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 Song Chuan Precision Co and its competitors. This is 22% below median its historical median of 10.55. Over the past decade, Song Chuan Precision Co's Return-on-Tangible-Equity has ranged from 4.94 to 24.38. According to the industry distribution chart, Song Chuan Precision Co ranks #1669 out of 2969 companies in the Industrial Products industry, placing it in the top 56.2%.
Is Song Chuan Precision Co's Return-on-Tangible-Equity too high?
Song Chuan Precision Co's current Return-on-Tangible-Equity of 8.23% is 22% below median its 10-year median of 10.55. Over the past 10 years, this metric has ranged from a low of 4.94 to a high of 24.38. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Song Chuan Precision Co's value of 8.23% is 22.5% above this industry median. Based on the distribution chart, Song Chuan Precision Co ranks #1669 out of 2969 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Song Chuan Precision Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Song Chuan Precision Co's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Song Chuan Precision Co ranks #1669 out of 2969 companies for Return-on-Tangible-Equity. This places Song Chuan Precision Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Song Chuan Precision Co's value of 8.23% is 22.5% above this benchmark. Historically, Song Chuan Precision Co's own Return-on-Tangible-Equity has ranged from 4.94 to 24.38 over the past decade. While the company's 10-year median is 10.55 vs. the industry median of 6.72, Song Chuan Precision 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,969 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. Song Chuan Precision Co's current Return-on-Tangible-Equity of 8.23% is 22.5% 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 Song Chuan Precision Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Song Chuan Precision Co's current Return-on-Tangible-Equity is 8.23%, which is 22% below median its own 10-year median of 10.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Song Chuan Precision Co stock overvalued right now?
Song Chuan Precision Co (TPE:7788) has a current Return-on-Tangible-Equity of 8.23%. The current Return-on-Tangible-Equity is 8.23%, which is 22% below median its 10-year median of 10.55 and 22.5% above the Industrial Products industry median of 6.72. Song Chuan Precision Co's overall GF Score™ is 18/100 with 3 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 Song Chuan Precision Co (TPE:7788), the current Return-on-Tangible-Equity is 8.23% 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.
Song Chuan Precision Co Ltd is engaged in the research and development, manufacturing, processing, and sales of electronic components such as relays and capacitors. Its product range includes PCB and plug-in automotive relays, PCB miniature power relays, Industrial and general purpose relays, and Safety relays. Its products are used in various applications such as home appliances, automotives, IT products, other applications. The company's segment includes Song Chung, Xiamen, America, Shanghai, and Other segment.
18GF Score
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