SEC Electric Machinery Co (SHSE:603988) EBIT: ¥35.9 Mil (TTM As of Mar. 2026)

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SHSE:603988 SEC Electric Machinery Co Ltd SHSE:603988
63 GF Score
Price ¥20.65
GF Value ¥15.51
Valuation Significantly Overvalued
! 4 Warning Signs
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What is SEC Electric Machinery Co EBIT?

SEC Electric Machinery Co SHSE:603988 +10.02% 63 EBIT is ¥35.9 Mil as of Mar. 2026. GuruFocus rates SHSE:603988 with a GF Score™ of 63/100 and a GF Value™ of ¥15.51 (Significantly Overvalued). The stock has 4 warning signs investors should review.

SEC Electric Machinery Co's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was ¥6.4 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was ¥35.9 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. SEC Electric Machinery Co's annualized ROC % for the quarter that ended in Mar. 2026 was 4.63%. SEC Electric Machinery Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 16.91%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. SEC Electric Machinery Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 0.78%.


SEC Electric Machinery Co  (SHSE:603988) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

SEC Electric Machinery Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=31.884 * ( 1 - 24.63% )/( (523.675 + 513.911)/ 2 )
=24.0309708/518.793
=4.63 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1084.75 - 305.083 - ( 255.992 - max(0, 420.794 - 938.619+255.992))
=523.675

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1076.154 - 302.854 - ( 259.389 - max(0, 407.138 - 933.429+259.389))
=513.911

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

SEC Electric Machinery Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=25.612/( ( (100.121 + max(55.197, 0)) + (97.039 + max(50.53, 0)) )/ 2 )
=25.612/( ( 155.318 + 147.569 )/ 2 )
=25.612/151.4435
=16.91 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(236.137 + 235.45 + 3.1340000000001) - (305.083 + 0 + 114.441)
=55.197

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(209.752 + 241.704 + 4.931) - (302.854 + 0 + 103.003)
=50.53

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

SEC Electric Machinery Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=35.925/4606.752
=0.78 %

* 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.


SEC Electric Machinery Co EBIT Related Terms


SEC Electric Machinery Co EBIT Historical Data

* Premium members only.

The historical data trend for SEC Electric Machinery Co's EBIT 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.

SEC Electric Machinery Co EBIT Chart

SEC Electric Machinery Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.65 60.80 52.22 -13.52 36.61

SEC Electric Machinery Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.09 31.67 7.72 -9.87 6.40

SHSE:603988 vs GEV, ETN, PH: EBIT Comparison

For the Specialty Industrial Machinery subindustry, SEC Electric Machinery Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.


SEC Electric Machinery Co EV-to-EBIT vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, SEC Electric Machinery Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where SEC Electric Machinery Co's EV-to-EBIT falls into.


SHSE:603988
63GF Score
SEC Electric Machinery Co Ltd SHSE:603988
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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SEC Electric Machinery Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥35.9 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of ¥35.9 Mil mean?
SEC Electric Machinery Co (SHSE:603988) has a EBIT of ¥35.9 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on SEC Electric Machinery Co.
Is SEC Electric Machinery Co's EBIT too high?
SEC Electric Machinery Co's current EBIT is ¥35.9 Mil. Overall, SEC Electric Machinery Co has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SEC Electric Machinery Co's EBIT compare to GEV and ETN?
SEC Electric Machinery Co's EBIT of ¥35.9 Mil can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Industrial Products company?
A good EBIT depends on the Industrial Products industry context. However, EBIT 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 EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on SEC Electric Machinery Co. SEC Electric Machinery Co's current EBIT is ¥35.9 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SEC Electric Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, SEC Electric Machinery Co (SHSE:603988) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥15.51, compared to a current price of ¥20.65 — trading 33.1% above its estimated fair value. The current EBIT is ¥35.9 Mil. SEC Electric Machinery Co's overall GF Score™ is 63/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For SEC Electric Machinery Co (SHSE:603988), the current EBIT is ¥35.9 Mil 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 SEC Electric Machinery Co (SHSE:603988) Overvalued in 2026?

Based on GuruFocus' analysis, SEC Electric Machinery Co stock appears to be overvalued. The current stock price of ¥20.65 is trading 33.1% above its estimated GF Value™ of ¥15.51. GuruFocus considers SEC Electric Machinery Co to be Significantly Overvalued.

Key valuation signals for SHSE:603988:

  • EBIT: ¥35.9 Mil
  • GF Value™: ¥15.51 vs. price of ¥20.65 (33.1% above fair value)
  • GF Score™: 63/100 with 4 warning signs

No single metric tells the full story. See the SHSE:603988 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


SEC Electric Machinery Co Business Description

Address No. 777 East Gaolang Road, Binhu District, Jiangsu Provice, Wuxi, CHN
SEC Electric Machinery Co Ltd is a China-based medium and large-scale motors manufacturer and exporter. Its product range includes direct current (DC) motors, slip ring alternating current (AC) motors, squirrel cage AC motors, synchronous motors, petroleum drilling motors, mine elevator motors, wind-driven generators, flameproof motors, short-circuit generators, and turbo generators. The company caters its products and services to the metallurgy, thermal power, petrochemical, mining, building material production, paper converting,g, and wind energy conversion industries. The company exports its products to the United States, Italy, Brazil, Russia, Turkey, Korea, South Africa, India, Kazakhstan, Thailand, Bangladesh, Vietnam, Nigeria, and Sudan.
63GF Score

Get the complete analysis for SHSE:603988

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥20.65
Price
¥15.51
GF Value