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ZKH GroupZKH -0.34%36 Return-on-Tangible-Equity is -1.43% as of Mar. 2026. GuruFocus rates ZKH with a GF Score™ of 36/100. The stock has 1 warning sign investors should review. Among 1,059 Retail - Cyclical companies, ZKH Group ranks worse than 80.26% 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. ZKH Group's annualized net income for the quarter that ended in Mar. 2026 was $-6 Mil. ZKH Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $410 Mil. Therefore, ZKH Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -1.43%.
The historical rank and industry rank for ZKH Group's Return-on-Tangible-Equity or its related term are showing as below:
ZKH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.57 Med: -6.69 Max: -2.84
Current: -2.84
During the past 6 years, ZKH Group's highest Return-on-Tangible-Equity was -2.84%. The lowest was -8.57%. And the median was -6.69%.
ZKH's Return-on-Tangible-Equity is ranked worse than 80.26% of 1059
companies
in the Retail - Cyclical industry
Industry Median: 8.45
vs ZKH: -2.84
ZKH Group (NYSE:ZKH) 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.
ZKH Group Return-on-Tangible-Equity Related Terms
ZKH Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ZKH 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.
ZKH vs NEGG, LOGC, BBBY: Return-on-Tangible-Equity Comparison
For the Internet Retail subindustry, ZKH 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.
ZKH Group Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, ZKH Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ZKH 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 (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 -1.43% mean?
ZKH Group (ZKH) has a Return-on-Tangible-Equity of -1.43% 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 ZKH Group and its competitors. According to the industry distribution chart, ZKH Group ranks #850 out of 1059 companies in the Retail - Cyclical industry, placing it in the top 80.3%.
Is ZKH Group's Return-on-Tangible-Equity too high?
ZKH Group's current Return-on-Tangible-Equity is -1.43%. Based on the distribution chart, ZKH Group ranks #850 out of 1059 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, ZKH Group has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does ZKH Group's Return-on-Tangible-Equity compare to NEGG and LOGC?
According to the Retail - Cyclical industry distribution chart, ZKH Group ranks #850 out of 1059 companies for Return-on-Tangible-Equity. This places ZKH Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.45. 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.45, based on 1,059 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 ZKH Group and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZKH Group's current Return-on-Tangible-Equity is -1.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZKH Group stock overvalued right now?
ZKH Group (ZKH) has a current Return-on-Tangible-Equity of -1.43%. The current Return-on-Tangible-Equity is -1.43%. ZKH Group's overall GF Score™ is 36/100 with 1 warning sign 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 ZKH Group (ZKH), the current Return-on-Tangible-Equity is -1.43% 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.
ZKH Group Ltd engages in providing MRO procurement service platform in China. It provides one-stop MRO procurement and management services for its customers, and offers digital and fulfillment solutions for participants along the industry value chain. It offers a broad range of MRO product offerings covering all MRO product lines on its platform, including spare parts, chemicals, manufacturing parts, general consumables, and office supplies. Majority of the revenues are derived from the PRC.
36GF Score
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