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Precision Tsugami (China)HKSE:01651 +1.95%81 ROE % is 34.50% as of Mar. 2026, which is 42% above its 10-year median of 24.30. GuruFocus rates HKSE:01651 with a GF Score™ of 81/100 and a GF Value™ of HK$20.43 (Significantly Overvalued). Among 3,014 Industrial Products companies, Precision Tsugami (China) ranks better than 96.38% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Tools & Accessories subindustry, Precision Tsugami (China)'s ROE %, along with its competitors' market caps and ROE % 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.
Precision Tsugami (China) ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Precision Tsugami (China)'s ROE % distribution charts can be found below:
* The bar in red indicates where Precision Tsugami (China)'s ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Precision Tsugami (China) (HKSE:01651) has a ROE % of 34.50% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Precision Tsugami (China) and its competitors. This is 42% above median its historical median of 24.30. Over the past decade, Precision Tsugami (China)'s ROE % has ranged from 10.51 to 34.03. According to the industry distribution chart, Precision Tsugami (China) ranks #109 out of 3014 companies in the Industrial Products industry, placing it in the top 3.6%.
Is Precision Tsugami (China)'s ROE % too high?
Precision Tsugami (China)'s current ROE % of 34.50% is 42% above median its 10-year median of 24.30. Over the past 10 years, this metric has ranged from a low of 10.51 to a high of 34.03. The Industrial Products industry median ROE % is 6.25. Precision Tsugami (China)'s value of 34.50% is 452% above this industry median. Based on the distribution chart, Precision Tsugami (China) ranks #109 out of 3014 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Precision Tsugami (China) has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precision Tsugami (China)'s ROE % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Precision Tsugami (China) ranks #109 out of 3014 companies for ROE %. This places Precision Tsugami (China) in the top 4% of its industry — outperforming the majority of peers. The industry median ROE % is 6.25. Precision Tsugami (China)'s value of 34.50% is 452% above this benchmark. Historically, Precision Tsugami (China)'s own ROE % has ranged from 10.51 to 34.03 over the past decade. While the company's 10-year median is 24.30 vs. the industry median of 6.25, Precision Tsugami (China) 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 ROE % for an Industrial Products company?
The median ROE % among Industrial Products companies is 6.25, based on 3,014 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Precision Tsugami (China)'s current ROE % of 34.50% is 452% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Precision Tsugami (China) and its competitors. For the Industrial Products industry, the median ROE % is 6.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Tsugami (China)'s current ROE % is 34.50%, which is 42% above median its own 10-year median of 24.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Tsugami (China) stock overvalued right now?
Based on GuruFocus' analysis, Precision Tsugami (China) (HKSE:01651) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$20.43, compared to a current price of HK$52.35 — trading 156.2% above its estimated fair value. The current ROE % is 34.50%, which is 42% above median its 10-year median of 24.30 and 452% above the Industrial Products industry median of 6.25. Precision Tsugami (China)'s overall GF Score™ is 81/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Precision Tsugami (China) (HKSE:01651), the current ROE % is 34.50% 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 Precision Tsugami (China) (HKSE:01651) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Tsugami (China) stock appears to be overvalued.
The current stock price of HK$52.35 is trading 156.2% above its estimated GF Value™ of HK$20.43.
GuruFocus considers Precision Tsugami (China) to be Significantly Overvalued.
Key valuation signals for HKSE:01651:
ROE %: 34.50% (42% above median its 10-year median of 24.30)
GF Value™: HK$20.43 vs. price of HK$52.35 (156.2% above fair value)
Industry Position: 452% above the Industrial Products median (#109 of 3014)
No single metric tells the full story. See the HKSE:01651 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Tsugami (China) Corp Ltd is engaged in the manufacturing and distribution of computer numerical control (CNC) high precision machine tools; and the provision of commercial consultation services. It manufactures and sells CNC machine tools including Precision lathes, Precision machining centers, Precision thread and form rolling machines and Precision grinding machines under the TSUGAMI brand. The company only has one reportable operating segment which is the manufacture and sale of high precision CNC machine tools. Its products are mainly for the Chinese market and are also sold to Japan, Europe, the USA, Southeast Asia and other countries.
81GF Score
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