SHNXY'
s ROA % Range Over the Past 10 Years
Min: 2.65 Med: 4.82 Max: 6
Current: 2.85
During the past 13 years, Shandong Xinhua Pharmaceutical Co's highest ROA % was 6.00%. The lowest was 2.65%. And the median was 4.82%.
SHNXY's ROA % is ranked better than 50.45% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 2.74
vs SHNXY: 2.85
Shandong Xinhua Pharmaceutical Co (OTCPK:SHNXY) 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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
Shandong Xinhua Pharmaceutical Co ROA % Related Terms
Shandong Xinhua Pharmaceutical 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Shandong Xinhua Pharmaceutical 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.
Shandong Xinhua Pharmaceutical Co ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shandong Xinhua Pharmaceutical Co's ROA % distribution charts can be found below:
* The bar in red indicates where Shandong Xinhua Pharmaceutical Co'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 four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Shandong Xinhua Pharmaceutical Co (SHNXY) has a ROA % of 3.72% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Shandong Xinhua Pharmaceutical Co and its competitors. This is 23% below median its historical median of 4.82. Over the past decade, Shandong Xinhua Pharmaceutical Co's ROA % has ranged from 2.65 to 6.00. According to the industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #498 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 49.6%.
Is Shandong Xinhua Pharmaceutical Co's ROA % too high?
Shandong Xinhua Pharmaceutical Co's current ROA % of 3.72% is 23% below median its 10-year median of 4.82. Over the past 10 years, this metric has ranged from a low of 2.65 to a high of 6.00. The Drug Manufacturers industry median ROA % is 2.74. Shandong Xinhua Pharmaceutical Co's value of 3.72% is 35.8% above this industry median. Based on the distribution chart, Shandong Xinhua Pharmaceutical Co ranks #498 out of 1005 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Shandong Xinhua Pharmaceutical Co has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Shandong Xinhua Pharmaceutical Co's ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #498 out of 1005 companies for ROA %. This puts Shandong Xinhua Pharmaceutical Co in the upper half of its industry. The industry median ROA % is 2.74. Shandong Xinhua Pharmaceutical Co's value of 3.72% is 35.8% above this benchmark. Historically, Shandong Xinhua Pharmaceutical Co's own ROA % has ranged from 2.65 to 6.00 over the past decade. While the company's 10-year median is 4.82 vs. the industry median of 2.74, Shandong Xinhua Pharmaceutical 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.74, based on 1,005 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. Shandong Xinhua Pharmaceutical Co's current ROA % of 3.72% is 35.8% 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 Shandong Xinhua Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Xinhua Pharmaceutical Co's current ROA % is 3.72%, which is 23% below median its own 10-year median of 4.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Xinhua Pharmaceutical Co stock overvalued right now?
Shandong Xinhua Pharmaceutical Co (SHNXY) has a current ROA % of 3.72%. The stock's GF Value™ is $21.89, compared to a current price of $18.19 — trading 16.9% below its estimated fair value. The current ROA % is 3.72%, which is 23% below median its 10-year median of 4.82 and 35.8% above the Drug Manufacturers industry median of 2.74. Shandong Xinhua Pharmaceutical Co's overall GF Score™ is 75/100 with 5 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 Shandong Xinhua Pharmaceutical Co (SHNXY), the current ROA % is 3.72% 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 Shandong Xinhua Pharmaceutical Co (SHNXY) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Xinhua Pharmaceutical Co stock appears to be undervalued.
The current stock price of $18.19 is trading 16.9% below its estimated GF Value™ of $21.89.
Key valuation signals for SHNXY:
ROA %: 3.72% (23% below median its 10-year median of 4.82)
GF Value™: $21.89 vs. price of $18.19 (16.9% below fair value)
Industry Position: 35.8% above the Drug Manufacturers median (#498 of 1005)
No single metric tells the full story. See the SHNXY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Xinhua Pharmaceutical Co Business Description
Shandong Xinhua Pharmaceutical Co Ltd is a pharmaceutical products manufacturer based in China. It operates various segments namely Chemical raw materials, Preparations, Pharmaceutical intermediates and other products. The company is mainly engaged in the business of development, manufacture and sale of bulk pharmaceuticals, preparations and chemical products.
75GF Score
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