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Hunan New Welllink Advanced Metallic Material Co (BJSE:920634) 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.
Hunan New Welllink Advanced Metallic Material Co ROA % Related Terms
Hunan New Welllink Advanced Metallic Material 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.
Hunan New Welllink Advanced Metallic Material Co ROA % Chart
Hunan New Welllink Advanced Metallic Material Co Annual Data
* 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.
Hunan New Welllink Advanced Metallic Material Co ROA % vs Chemicals 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.
Hunan New Welllink Advanced Metallic Material Co (BJSE:920634) has a ROA % of 6.09% 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 Hunan New Welllink Advanced Metallic Material Co and its competitors. This is 32% below median its historical median of 9.01. Over the past decade, Hunan New Welllink Advanced Metallic Material Co's ROA % has ranged from 4.44 to 20.04. According to the industry distribution chart, Hunan New Welllink Advanced Metallic Material Co ranks #674 out of 1623 companies in the Chemicals industry, placing it in the top 41.5%.
Is Hunan New Welllink Advanced Metallic Material Co's ROA % too high?
Hunan New Welllink Advanced Metallic Material Co's current ROA % of 6.09% is 32% below median its 10-year median of 9.01. Over the past 10 years, this metric has ranged from a low of 4.44 to a high of 20.04. The Chemicals industry median ROA % is 3.43. Hunan New Welllink Advanced Metallic Material Co's value of 6.09% is 77.6% above this industry median. Based on the distribution chart, Hunan New Welllink Advanced Metallic Material Co ranks #674 out of 1623 companies in the Chemicals industry, which is above the industry midpoint. Overall, Hunan New Welllink Advanced Metallic Material Co has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hunan New Welllink Advanced Metallic Material Co's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Hunan New Welllink Advanced Metallic Material Co ranks #674 out of 1623 companies for ROA %. This puts Hunan New Welllink Advanced Metallic Material Co in the upper half of its industry. The industry median ROA % is 3.43. Hunan New Welllink Advanced Metallic Material Co's value of 6.09% is 77.6% above this benchmark. Historically, Hunan New Welllink Advanced Metallic Material Co's own ROA % has ranged from 4.44 to 20.04 over the past decade. While the company's 10-year median is 9.01 vs. the industry median of 3.43, Hunan New Welllink Advanced Metallic Material 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 a Chemicals company?
The median ROA % among Chemicals companies is 3.43, based on 1,623 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. Hunan New Welllink Advanced Metallic Material Co's current ROA % of 6.09% is 77.6% 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 Hunan New Welllink Advanced Metallic Material Co and its competitors. For the Chemicals industry, the median ROA % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan New Welllink Advanced Metallic Material Co's current ROA % is 6.09%, which is 32% below median its own 10-year median of 9.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan New Welllink Advanced Metallic Material Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan New Welllink Advanced Metallic Material Co (BJSE:920634) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥20.35, compared to a current price of ¥16.01 — trading 21.3% below its estimated fair value. The current ROA % is 6.09%, which is 32% below median its 10-year median of 9.01 and 77.6% above the Chemicals industry median of 3.43. Hunan New Welllink Advanced Metallic Material Co's overall GF Score™ is 74/100 with 9 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 Hunan New Welllink Advanced Metallic Material Co (BJSE:920634), the current ROA % is 6.09% 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 Hunan New Welllink Advanced Metallic Material Co (BJSE:920634) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan New Welllink Advanced Metallic Material Co stock appears to be undervalued.
The current stock price of ¥16.01 is trading 21.3% below its estimated GF Value™ of ¥20.35.
GuruFocus considers Hunan New Welllink Advanced Metallic Material Co to be Modestly Undervalued.
Key valuation signals for BJSE:920634:
ROA %: 6.09% (32% below median its 10-year median of 9.01)
GF Value™: ¥20.35 vs. price of ¥16.01 (21.3% below fair value)
Industry Position: 77.6% above the Chemicals median (#674 of 1623)
No single metric tells the full story. See the BJSE:920634 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan New Welllink Advanced Metallic Material Co Ltd engages in research and development, production, and sales of zinc metals such as spherical zinc powder, flake zinc powder, and irregular zinc powder.
74GF Score
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