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Jiangsu Innovative Ecological New Materials (HKSE:02116) 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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
Jiangsu Innovative Ecological New Materials ROA % Related Terms
Jiangsu Innovative Ecological New Materials 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.
Jiangsu Innovative Ecological New Materials ROA % Chart
Jiangsu Innovative Ecological New Materials 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.
Jiangsu Innovative Ecological New Materials 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 two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Jiangsu Innovative Ecological New Materials (HKSE:02116) has a ROA % of 4.25% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Jiangsu Innovative Ecological New Materials and its competitors. This is 41% below median its historical median of 7.22. Over the past decade, Jiangsu Innovative Ecological New Materials' ROA % has ranged from 3.31 to 23.80. According to the industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #493 out of 1615 companies in the Chemicals industry, placing it in the top 30.5%.
Is Jiangsu Innovative Ecological New Materials' ROA % too high?
Jiangsu Innovative Ecological New Materials' current ROA % of 4.25% is 41% below median its 10-year median of 7.22. Over the past 10 years, this metric has ranged from a low of 3.31 to a high of 23.80. The Chemicals industry median ROA % is 3.07. Jiangsu Innovative Ecological New Materials' value of 4.25% is 38.4% above this industry median. Based on the distribution chart, Jiangsu Innovative Ecological New Materials ranks #493 out of 1615 companies in the Chemicals industry, which is above the industry midpoint. Overall, Jiangsu Innovative Ecological New Materials has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Innovative Ecological New Materials' ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #493 out of 1615 companies for ROA %. This puts Jiangsu Innovative Ecological New Materials in the upper half of its industry. The industry median ROA % is 3.07. Jiangsu Innovative Ecological New Materials' value of 4.25% is 38.4% above this benchmark. Historically, Jiangsu Innovative Ecological New Materials' own ROA % has ranged from 3.31 to 23.80 over the past decade. While the company's 10-year median is 7.22 vs. the industry median of 3.07, Jiangsu Innovative Ecological New Materials 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 3.07, based on 1,615 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. Jiangsu Innovative Ecological New Materials's current ROA % of 4.25% is 38.4% 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 Jiangsu Innovative Ecological New Materials and its competitors. For the Chemicals industry, the median ROA % is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Innovative Ecological New Materials's current ROA % is 4.25%, which is 41% below median its own 10-year median of 7.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Innovative Ecological New Materials stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials (HKSE:02116) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.43, compared to a current price of HK$0.71 — trading 65.1% above its estimated fair value. The current ROA % is 4.25%, which is 41% below median its 10-year median of 7.22 and 38.4% above the Chemicals industry median of 3.07. Jiangsu Innovative Ecological New Materials' overall GF Score™ is 61/100 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 Jiangsu Innovative Ecological New Materials (HKSE:02116), the current ROA % is 4.25% 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 Jiangsu Innovative Ecological New Materials (HKSE:02116) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials stock appears to be overvalued.
The current stock price of HK$0.71 is trading 65.1% above its estimated GF Value™ of HK$0.43.
GuruFocus considers Jiangsu Innovative Ecological New Materials to be Significantly Overvalued.
Key valuation signals for HKSE:02116:
ROA %: 4.25% (41% below median its 10-year median of 7.22)
GF Value™: HK$0.43 vs. price of HK$0.71 (65.1% above fair value)
Industry Position: 38.4% above the Chemicals median (#493 of 1615)
No single metric tells the full story. See the HKSE:02116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Innovative Ecological New Materials Ltd develops, manufactures, and markets oil refining agents. The firm produces refining additives, oil additives, and other products. It offers and generates revenue from oil refining agents and fuel additives with desulfurizing agents, lubricity improvers, and metal passivation. The majority of the firm's revenue is generated from the sales of oil refining agents from Mainland China. The company operates in a single segment, which is the sale of oil refining agents and fuel additives.
61GF Score
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