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SHSE:600320's ROA % is ranked worse than 66.3% of 3074
companies
in the Industrial Products industry
Industry Median: 3.045
vs SHSE:600320: 1.03
Shanghai Zhenhua Heavy Industries Co (SHSE:600320) 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.
Shanghai Zhenhua Heavy Industries Co ROA % Related Terms
Shanghai Zhenhua Heavy Industries 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 Specialty Industrial Machinery subindustry, Shanghai Zhenhua Heavy Industries 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.
Shanghai Zhenhua Heavy Industries Co ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shanghai Zhenhua Heavy Industries Co's ROA % distribution charts can be found below:
* The bar in red indicates where Shanghai Zhenhua Heavy Industries 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.
Shanghai Zhenhua Heavy Industries Co (SHSE:600320) has a ROA % of 1.84% 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 Shanghai Zhenhua Heavy Industries Co and its competitors. This is 207% above median its historical median of 0.60. Over the past decade, Shanghai Zhenhua Heavy Industries Co's ROA % has ranged from 0.35 to 1.03. According to the industry distribution chart, Shanghai Zhenhua Heavy Industries Co ranks #2038 out of 3074 companies in the Industrial Products industry, placing it in the top 66.3%.
Is Shanghai Zhenhua Heavy Industries Co's ROA % too high?
Shanghai Zhenhua Heavy Industries Co's current ROA % of 1.84% is 207% above median its 10-year median of 0.60. Over the past 10 years, this metric has ranged from a low of 0.35 to a high of 1.03. The Industrial Products industry median ROA % is 3.05. Shanghai Zhenhua Heavy Industries Co's value of 1.84% is 39.6% below this industry median. Based on the distribution chart, Shanghai Zhenhua Heavy Industries Co ranks #2038 out of 3074 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shanghai Zhenhua Heavy Industries Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Zhenhua Heavy Industries Co's ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shanghai Zhenhua Heavy Industries Co ranks #2038 out of 3074 companies for ROA %. This places Shanghai Zhenhua Heavy Industries Co in the lower half of its industry. The industry median ROA % is 3.05. Shanghai Zhenhua Heavy Industries Co's value of 1.84% is 39.6% below this benchmark. Historically, Shanghai Zhenhua Heavy Industries Co's own ROA % has ranged from 0.35 to 1.03 over the past decade. While the company's 10-year median is 0.60 vs. the industry median of 3.05, Shanghai Zhenhua Heavy Industries 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 Industrial Products company?
The median ROA % among Industrial Products companies is 3.05, based on 3,074 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. Shanghai Zhenhua Heavy Industries Co's current ROA % of 1.84% is 39.6% 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 Shanghai Zhenhua Heavy Industries Co and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Zhenhua Heavy Industries Co's current ROA % is 1.84%, which is 207% above median its own 10-year median of 0.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Zhenhua Heavy Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Zhenhua Heavy Industries Co (SHSE:600320) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥4.61, compared to a current price of ¥4.14 — trading 10.2% below its estimated fair value. The current ROA % is 1.84%, which is 207% above median its 10-year median of 0.60 and 39.6% below the Industrial Products industry median of 3.05. Shanghai Zhenhua Heavy Industries Co's overall GF Score™ is 78/100 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 Shanghai Zhenhua Heavy Industries Co (SHSE:600320), the current ROA % is 1.84% 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 Shanghai Zhenhua Heavy Industries Co (SHSE:600320) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Zhenhua Heavy Industries Co stock appears to be undervalued.
The current stock price of ¥4.14 is trading 10.2% below its estimated GF Value™ of ¥4.61.
GuruFocus considers Shanghai Zhenhua Heavy Industries Co to be Modestly Undervalued.
Key valuation signals for SHSE:600320:
ROA %: 1.84% (207% above median its 10-year median of 0.60)
GF Value™: ¥4.61 vs. price of ¥4.14 (10.2% below fair value)
Industry Position: 39.6% below the Industrial Products median (#2038 of 3074)
No single metric tells the full story. See the SHSE:600320 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Zhenhua Heavy Industries Co Business Description
Shanghai Zhenhua Heavy Industries Co Ltd manufactures heavy equipment and offers product design and aftermarket services. It constructs large port loading systems and equipment, offshore heavy equipment, engineering machinery, ships, and other large structures. In addition, the company offers environment-friendly devices, including wind power, sea water desalination, sewage treatment, and recycling equipment. Research centers and technologies help meet customers' needs, and provide innovative solutions to enhance operational performance. Offices with regional parts are scattered across the globe to supply timely responses and support preventive maintenance. The majority of total revenue comes from Asia, but the company has diversified operations to several continents.
78GF Score
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ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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