Zhongsheng Group HoldingsZSHGY 57 Return-on-Tangible-Equity is -20.85% as of Dec. 2025. GuruFocus rates ZSHGY with a GF Score™ of 57/100 and a GF Value™ of $17.54 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 1,284 Vehicles & Parts companies, Zhongsheng Group Holdings ranks worse than 84.81% 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. Zhongsheng Group Holdings's annualized net income for the quarter that ended in Dec. 2025 was $-762 Mil. Zhongsheng Group Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $3,656 Mil. Therefore, Zhongsheng Group Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -20.85%.
The historical rank and industry rank for Zhongsheng Group Holdings's Return-on-Tangible-Equity or its related term are showing as below:
ZSHGY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.71 Med: 52.51 Max: 87.96
Current: -6.61
During the past 13 years, Zhongsheng Group Holdings's highest Return-on-Tangible-Equity was 87.96%. The lowest was -6.71%. And the median was 52.51%.
ZSHGY's Return-on-Tangible-Equity is ranked worse than 84.81% of 1284
companies
in the Vehicles & Parts industry
Industry Median: 7.48
vs ZSHGY: -6.61
Zhongsheng Group Holdings (OTCPK:ZSHGY) 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.
Zhongsheng Group Holdings Return-on-Tangible-Equity Related Terms
Zhongsheng Group Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zhongsheng Group Holdings'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.
Zhongsheng Group Holdings Return-on-Tangible-Equity Chart
ZSHGY vs CVNA, PAG, ALTB: Return-on-Tangible-Equity Comparison
For the Auto & Truck Dealerships subindustry, Zhongsheng Group Holdings'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.
Zhongsheng Group Holdings Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Zhongsheng Group Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zhongsheng Group Holdings'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 two times the semi-annual (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 -20.85% mean?
Zhongsheng Group Holdings (ZSHGY) has a Return-on-Tangible-Equity of -20.85% 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 Zhongsheng Group Holdings and its competitors. According to the industry distribution chart, Zhongsheng Group Holdings ranks #1089 out of 1284 companies in the Vehicles & Parts industry, placing it in the top 84.8%.
Is Zhongsheng Group Holdings' Return-on-Tangible-Equity too high?
Zhongsheng Group Holdings' current Return-on-Tangible-Equity is -20.85%. Based on the distribution chart, Zhongsheng Group Holdings ranks #1089 out of 1284 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Zhongsheng Group Holdings has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongsheng Group Holdings' Return-on-Tangible-Equity compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Zhongsheng Group Holdings ranks #1089 out of 1284 companies for Return-on-Tangible-Equity. This places Zhongsheng Group Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.48. 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.48, based on 1,284 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 Zhongsheng Group Holdings and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongsheng Group Holdings's current Return-on-Tangible-Equity is -20.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongsheng Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongsheng Group Holdings (ZSHGY) is currently considered Significantly Undervalued. The stock's GF Value™ is $17.54, compared to a current price of $6.48 — trading 63.1% below its estimated fair value. The current Return-on-Tangible-Equity is -20.85%. Zhongsheng Group Holdings' overall GF Score™ is 57/100 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 Zhongsheng Group Holdings (ZSHGY), the current Return-on-Tangible-Equity is -20.85% 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 Zhongsheng Group Holdings (ZSHGY) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongsheng Group Holdings stock appears to be undervalued.
The current stock price of $6.48 is trading 63.1% below its estimated GF Value™ of $17.54.
GuruFocus considers Zhongsheng Group Holdings to be Significantly Undervalued.
Key valuation signals for ZSHGY:
Return-on-Tangible-Equity: -20.85%
GF Value™: $17.54 vs. price of $6.48 (63.1% below fair value)
No single metric tells the full story. See the ZSHGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongsheng Group Holdings Ltd principally engaged in the sale and service of motor vehicles. The principal activity of the Company is investment holding. It has one reportable segment which is the sale of motor vehicles and the provision of related services. The company's automobile brands including luxury brands of Mercedes-Benz, Lexus, BMW, Audi, Jaguar Land Rover, Porsche, Volvo and AITO, and mid-to-high end automobile brands including Toyota, Nissan and Honda. In addition to its new automobile sales business, its after-sales businesses offer spare parts, automobile accessories, repair and maintenance services, detailing services, and other automobile-related products and services.
57GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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