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Zhongzhi Pharmaceutical HoldingsHKSE:03737 47 ROA % is 0.93% as of Dec. 2025, which is 88% below its 10-year median of 7.83. GuruFocus rates HKSE:03737 with a GF Score™ of 47/100 and a GF Value™ of HK$0.89 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,007 Drug Manufacturers companies, Zhongzhi Pharmaceutical Holdings ranks worse than 59.19% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Zhongzhi Pharmaceutical Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$19 Mil.
Zhongzhi Pharmaceutical Holdings's average Total Assets over the quarter that ended in Dec. 2025 was HK$2,019 Mil. Therefore, Zhongzhi Pharmaceutical Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 0.93%.
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.
Zhongzhi Pharmaceutical Holdings ROA % Related Terms
Zhongzhi Pharmaceutical Holdings 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Zhongzhi Pharmaceutical Holdings'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.
Zhongzhi Pharmaceutical Holdings ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhongzhi Pharmaceutical Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Zhongzhi Pharmaceutical Holdings's ROA % 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 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.
Zhongzhi Pharmaceutical Holdings (HKSE:03737) has a ROA % of 0.93% 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 Zhongzhi Pharmaceutical Holdings and its competitors. This is 88% below median its historical median of 7.83. Over the past decade, Zhongzhi Pharmaceutical Holdings' ROA % has ranged from 0.92 to 10.56. According to the industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #596 out of 1007 companies in the Drug Manufacturers industry, placing it in the top 59.2%.
Is Zhongzhi Pharmaceutical Holdings' ROA % too high?
Zhongzhi Pharmaceutical Holdings' current ROA % of 0.93% is 88% below median its 10-year median of 7.83. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 10.56. The Drug Manufacturers industry median ROA % is 2.47. Zhongzhi Pharmaceutical Holdings' value of 0.93% is 62.3% below this industry median. Based on the distribution chart, Zhongzhi Pharmaceutical Holdings ranks #596 out of 1007 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zhongzhi Pharmaceutical Holdings has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongzhi Pharmaceutical Holdings' ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #596 out of 1007 companies for ROA %. This places Zhongzhi Pharmaceutical Holdings in the lower half of its industry. The industry median ROA % is 2.47. Zhongzhi Pharmaceutical Holdings' value of 0.93% is 62.3% below this benchmark. Historically, Zhongzhi Pharmaceutical Holdings' own ROA % has ranged from 0.92 to 10.56 over the past decade. While the company's 10-year median is 7.83 vs. the industry median of 2.47, Zhongzhi Pharmaceutical Holdings has consistently been below 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.47, based on 1,007 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. Zhongzhi Pharmaceutical Holdings's current ROA % of 0.93% is 62.3% below 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 Zhongzhi Pharmaceutical Holdings and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongzhi Pharmaceutical Holdings's current ROA % is 0.93%, which is 88% below median its own 10-year median of 7.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongzhi Pharmaceutical Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings (HKSE:03737) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.89, compared to a current price of HK$0.71 — trading 20.2% below its estimated fair value. The current ROA % is 0.93%, which is 88% below median its 10-year median of 7.83 and 62.3% below the Drug Manufacturers industry median of 2.47. Zhongzhi Pharmaceutical Holdings' overall GF Score™ is 47/100 with 7 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737), the current ROA % is 0.93% 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings stock appears to be undervalued.
The current stock price of HK$0.71 is trading 20.2% below its estimated GF Value™ of HK$0.89.
GuruFocus considers Zhongzhi Pharmaceutical Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:03737:
ROA %: 0.93% (88% below median its 10-year median of 7.83)
GF Value™: HK$0.89 vs. price of HK$0.71 (20.2% below fair value)
Industry Position: 62.3% below the Drug Manufacturers median (#596 of 1007)
No single metric tells the full story. See the HKSE:03737 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongzhi Pharmaceutical Holdings Ltd is an investment holding company principally engaged in the manufacture and sale of pharmaceutical products in the PRC. The Group is a large industrial and trading enterprise group featuring researching, producing, and selling traditional Chinese medicine preparations, prepared slices of Chinese crude drugs, and foods. Its products include Shenqi Koufuye, Yinhuang Jiaonang, Yinhuang Keli, and others. Its segments are the pharmaceutical manufacturing segment, which generates maximum revenue, is engaged in the research and development, manufacturing, and sale of Chinese patent medicines and decoction pieces consisting of traditional decoction pieces and modern decoction pieces, and the operation of the chain pharmacies segment.
47GF Score
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