SHSE:600316's ROA % is ranked worse than 63.59% of 357
companies
in the Aerospace & Defense industry
Industry Median: 2.47
vs SHSE:600316: 0.36
Jiangxi Hongdu Aviation Industry Co (SHSE:600316) 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.
Jiangxi Hongdu Aviation Industry Co ROA % Related Terms
Jiangxi Hongdu Aviation Industry 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 Aerospace & Defense subindustry, Jiangxi Hongdu Aviation Industry 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.
Jiangxi Hongdu Aviation Industry Co ROA % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Jiangxi Hongdu Aviation Industry Co's ROA % distribution charts can be found below:
* The bar in red indicates where Jiangxi Hongdu Aviation Industry 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.
Jiangxi Hongdu Aviation Industry Co (SHSE:600316) has a ROA % of 0.17% 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 Jiangxi Hongdu Aviation Industry Co and its competitors. This is 69% below median its historical median of 0.55. Over the past decade, Jiangxi Hongdu Aviation Industry Co's ROA % has ranged from 0.11 to 1.46. According to the industry distribution chart, Jiangxi Hongdu Aviation Industry Co ranks #227 out of 357 companies in the Aerospace & Defense industry, placing it in the top 63.6%.
Is Jiangxi Hongdu Aviation Industry Co's ROA % too high?
Jiangxi Hongdu Aviation Industry Co's current ROA % of 0.17% is 69% below median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 1.46. The Aerospace & Defense industry median ROA % is 2.47. Jiangxi Hongdu Aviation Industry Co's value of 0.17% is 93.1% below this industry median. Based on the distribution chart, Jiangxi Hongdu Aviation Industry Co ranks #227 out of 357 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Jiangxi Hongdu Aviation Industry Co has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jiangxi Hongdu Aviation Industry Co's ROA % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Jiangxi Hongdu Aviation Industry Co ranks #227 out of 357 companies for ROA %. This places Jiangxi Hongdu Aviation Industry Co in the lower half of its industry. The industry median ROA % is 2.47. Jiangxi Hongdu Aviation Industry Co's value of 0.17% is 93.1% below this benchmark. Historically, Jiangxi Hongdu Aviation Industry Co's own ROA % has ranged from 0.11 to 1.46 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 2.47, Jiangxi Hongdu Aviation Industry Co 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 an Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.47, based on 357 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. Jiangxi Hongdu Aviation Industry Co's current ROA % of 0.17% is 93.1% 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 Jiangxi Hongdu Aviation Industry Co and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangxi Hongdu Aviation Industry Co's current ROA % is 0.17%, which is 69% below median its own 10-year median of 0.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangxi Hongdu Aviation Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangxi Hongdu Aviation Industry Co (SHSE:600316) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥50.89, compared to a current price of ¥28.89 — trading 43.2% below its estimated fair value. The current ROA % is 0.17%, which is 69% below median its 10-year median of 0.55 and 93.1% below the Aerospace & Defense industry median of 2.47. Jiangxi Hongdu Aviation Industry Co's overall GF Score™ is 62/100 with 2 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 Jiangxi Hongdu Aviation Industry Co (SHSE:600316), the current ROA % is 0.17% 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 Jiangxi Hongdu Aviation Industry Co (SHSE:600316) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangxi Hongdu Aviation Industry Co stock appears to be undervalued.
The current stock price of ¥28.89 is trading 43.2% below its estimated GF Value™ of ¥50.89.
GuruFocus considers Jiangxi Hongdu Aviation Industry Co to be Significantly Undervalued.
Key valuation signals for SHSE:600316:
ROA %: 0.17% (69% below median its 10-year median of 0.55)
GF Value™: ¥50.89 vs. price of ¥28.89 (43.2% below fair value)
Industry Position: 93.1% below the Aerospace & Defense median (#227 of 357)
No single metric tells the full story. See the SHSE:600316 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangxi Hongdu Aviation Industry Co Business Description
Jiangxi Hongdu Aviation Industry Co Ltd engages in the manufacture and sale of aviation products, motorcycles, and engines. The company operates through Trainer Business, Subcontract Production Business, and General Aviation Business segments. The main products of the K8 series jet trainer and the first teacher six-propeller trainer are exported to many countries and regions such as Asia, Africa, and the Americas. Further, the group act as the main export base for China's trainer aircraft, agricultural and forestry aircraft research and production bases and aviation foreign trade.
62GF Score
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