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Chengdu Zhonghuan Flow Controls Mfg Co (BJSE:920260) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data.
* 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
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Chengdu Zhonghuan Flow Controls Mfg Co ROA % Related Terms
Chengdu Zhonghuan Flow Controls Mfg Co ROA % Historical Data
* 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.
Chengdu Zhonghuan Flow Controls Mfg Co ROA % Chart
Chengdu Zhonghuan Flow Controls Mfg Co Annual Data
For the Specialty Industrial Machinery subindustry, Chengdu Zhonghuan Flow Controls Mfg Co's ROA %, along with its competitors' market caps and ROA % 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.
Chengdu Zhonghuan Flow Controls Mfg Co ROA % vs Industrial Products Industry
* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Chengdu Zhonghuan Flow Controls Mfg Co (BJSE:920260) has a ROA % of 6.32% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Chengdu Zhonghuan Flow Controls Mfg Co and its competitors. This is 35% below median its historical median of 9.75. Over the past decade, Chengdu Zhonghuan Flow Controls Mfg Co's ROA % has ranged from 5.62 to 15.79. According to the industry distribution chart, Chengdu Zhonghuan Flow Controls Mfg Co ranks #868 out of 3089 companies in the Industrial Products industry, placing it in the top 28.1%.
Is Chengdu Zhonghuan Flow Controls Mfg Co's ROA % too high?
Chengdu Zhonghuan Flow Controls Mfg Co's current ROA % of 6.32% is 35% below median its 10-year median of 9.75. Over the past 10 years, this metric has ranged from a low of 5.62 to a high of 15.79. The Industrial Products industry median ROA % is 3.21. Chengdu Zhonghuan Flow Controls Mfg Co's value of 6.32% is 96.9% above this industry median. Based on the distribution chart, Chengdu Zhonghuan Flow Controls Mfg Co ranks #868 out of 3089 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Chengdu Zhonghuan Flow Controls Mfg Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chengdu Zhonghuan Flow Controls Mfg Co's ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Chengdu Zhonghuan Flow Controls Mfg Co ranks #868 out of 3089 companies for ROA %. This puts Chengdu Zhonghuan Flow Controls Mfg Co in the upper half of its industry. The industry median ROA % is 3.21. Chengdu Zhonghuan Flow Controls Mfg Co's value of 6.32% is 96.9% above this benchmark. Historically, Chengdu Zhonghuan Flow Controls Mfg Co's own ROA % has ranged from 5.62 to 15.79 over the past decade. While the company's 10-year median is 9.75 vs. the industry median of 3.21, Chengdu Zhonghuan Flow Controls Mfg Co 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 ROA % for an Industrial Products company?
The median ROA % among Industrial Products companies is 3.21, based on 3,089 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chengdu Zhonghuan Flow Controls Mfg Co's current ROA % of 6.32% is 96.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Chengdu Zhonghuan Flow Controls Mfg Co and its competitors. For the Industrial Products industry, the median ROA % is 3.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chengdu Zhonghuan Flow Controls Mfg Co's current ROA % is 6.32%, which is 35% below median its own 10-year median of 9.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengdu Zhonghuan Flow Controls Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Chengdu Zhonghuan Flow Controls Mfg Co (BJSE:920260) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.07, compared to a current price of ¥8.70 — trading 13.6% below its estimated fair value. The current ROA % is 6.32%, which is 35% below median its 10-year median of 9.75 and 96.9% above the Industrial Products industry median of 3.21. Chengdu Zhonghuan Flow Controls Mfg Co's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Chengdu Zhonghuan Flow Controls Mfg Co (BJSE:920260), the current ROA % is 6.32% as of Jun. 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 Chengdu Zhonghuan Flow Controls Mfg Co (BJSE:920260) Overvalued in 2026?
Based on GuruFocus' analysis, Chengdu Zhonghuan Flow Controls Mfg Co stock appears to be undervalued.
The current stock price of ¥8.70 is trading 13.6% below its estimated GF Value™ of ¥10.07.
GuruFocus considers Chengdu Zhonghuan Flow Controls Mfg Co to be Modestly Undervalued.
Key valuation signals for BJSE:920260:
ROA %: 6.32% (35% below median its 10-year median of 9.75)
GF Value™: ¥10.07 vs. price of ¥8.70 (13.6% below fair value)
Industry Position: 96.9% above the Industrial Products median (#868 of 3089)
No single metric tells the full story. See the BJSE:920260 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chengdu Zhonghuan Flow Controls Mfg Co Ltd engages in the design, development, production, and sales of valve actuators, wellhead safety control systems, and skid-mounted equipment. It manufactures API 6D valve gas-hydraulic actuators, electro-hydraulic actuators, and pneumatic actuators; API 6A wellhead safety control systems, wellhead safety valve actuators; skids for the majority of conventional oil and gas fields, unconventional oil and gas fields, gas storage depots, and local gas companies. Assembly and module manufacturing; control valves and instrumentation.
76GF Score
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