XunleiXNET -0.52%70 Return-on-Tangible-Equity is -57.58% as of Mar. 2026. GuruFocus rates XNET with a GF Score™ of 70/100 and a GF Value™ of $3.24 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,473 Software companies, Xunlei ranks better than 87.26% 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. Xunlei's annualized net income for the quarter that ended in Mar. 2026 was $-698.6 Mil. Xunlei's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,213.1 Mil. Therefore, Xunlei's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -57.58%.
The historical rank and industry rank for Xunlei's Return-on-Tangible-Equity or its related term are showing as below:
XNET'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -18.28 Med: -2.42 Max: 130.11
Current: 83.61
During the past 13 years, Xunlei's highest Return-on-Tangible-Equity was 130.11%. The lowest was -18.28%. And the median was -2.42%.
XNET's Return-on-Tangible-Equity is ranked better than 87.26% of 2473
companies
in the Software industry
Industry Median: 8.79
vs XNET: 83.61
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.
Xunlei Return-on-Tangible-Equity Related Terms
Xunlei Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Xunlei'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.
XNET vs PSFE, IIIV, ALLT: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Xunlei'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.
Xunlei Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Xunlei's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Xunlei'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -57.58% mean?
Xunlei (XNET) has a Return-on-Tangible-Equity of -57.58% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Xunlei and its competitors. According to the industry distribution chart, Xunlei ranks #315 out of 2473 companies in the Software industry, placing it in the top 12.7%.
Is Xunlei's Return-on-Tangible-Equity too high?
Xunlei's current Return-on-Tangible-Equity is -57.58%. Based on the distribution chart, Xunlei ranks #315 out of 2473 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Xunlei has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xunlei's Return-on-Tangible-Equity compare to PSFE and IIIV?
According to the Software industry distribution chart, Xunlei ranks #315 out of 2473 companies for Return-on-Tangible-Equity. This places Xunlei in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.79. 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.79, based on 2,473 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. 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 Xunlei and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xunlei's current Return-on-Tangible-Equity is -57.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xunlei stock overvalued right now?
Based on GuruFocus' analysis, Xunlei (XNET) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.24, compared to a current price of $4.82 — trading 48.6% above its estimated fair value. The current Return-on-Tangible-Equity is -57.58%. Xunlei's overall GF Score™ is 70/100 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 Xunlei (XNET), the current Return-on-Tangible-Equity is -57.58% as of Mar. 2026. 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 Xunlei (XNET) Overvalued in 2026?
Based on GuruFocus' analysis, Xunlei stock appears to be overvalued.
The current stock price of $4.82 is trading 48.6% above its estimated GF Value™ of $3.24.
GuruFocus considers Xunlei to be Significantly Overvalued.
Key valuation signals for XNET:
Return-on-Tangible-Equity: -57.58%
GF Value™: $3.24 vs. price of $4.82 (48.6% above fair value)
No single metric tells the full story. See the XNET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xunlei Ltd is a technology company providing distributed cloud services in China. It operates a powerful internet platform in China based on cloud technology to enable its users to quickly access, store, manage and consume digital media content on the internet. The company has expanded its products and services from PC-based devices to mobile devices in part through pre-installed acceleration products in mobile phones to further enlarge its user base and offer its users a wider range of access points. It provides a wide range of products and services across cloud acceleration and digital entertainment to deliver an efficient, smart and safe internet environment to its users.
70GF Score
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