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Tangshannyou Chemical Industries Co (SHSE:600409) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Tangshannyou Chemical Industries Co ROA % Related Terms
Tangshannyou Chemical 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 Chemicals subindustry, Tangshannyou Chemical 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.
Tangshannyou Chemical Industries Co 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 four times the quarterly (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Tangshannyou Chemical Industries Co (SHSE:600409) has a ROA % of 3.84% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tangshannyou Chemical Industries Co and its competitors. This is 17% above median its historical median of 3.29. Over the past decade, Tangshannyou Chemical Industries Co's ROA % has ranged from 0.34 to 8.38. According to the industry distribution chart, Tangshannyou Chemical Industries Co ranks #1147 out of 1617 companies in the Chemicals industry, placing it in the top 70.9%.
Is Tangshannyou Chemical Industries Co's ROA % too high?
Tangshannyou Chemical Industries Co's current ROA % of 3.84% is 17% above median its 10-year median of 3.29. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 8.38. The Chemicals industry median ROA % is 3.43. Tangshannyou Chemical Industries Co's value of 3.84% is 12% above this industry median. Based on the distribution chart, Tangshannyou Chemical Industries Co ranks #1147 out of 1617 companies in the Chemicals industry, which is below the industry midpoint. Overall, Tangshannyou Chemical Industries Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tangshannyou Chemical Industries Co's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Tangshannyou Chemical Industries Co ranks #1147 out of 1617 companies for ROA %. This places Tangshannyou Chemical Industries Co in the lower half of its industry. The industry median ROA % is 3.43. Tangshannyou Chemical Industries Co's value of 3.84% is 12% above this benchmark. Historically, Tangshannyou Chemical Industries Co's own ROA % has ranged from 0.34 to 8.38 over the past decade. While the company's 10-year median is 3.29 vs. the industry median of 3.43, Tangshannyou Chemical Industries 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 Chemicals company?
The median ROA % among Chemicals companies is 3.43, based on 1,617 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. Tangshannyou Chemical Industries Co's current ROA % of 3.84% is 12% 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 Tangshannyou Chemical Industries Co and its competitors. For the Chemicals industry, the median ROA % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tangshannyou Chemical Industries Co's current ROA % is 3.84%, which is 17% above median its own 10-year median of 3.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tangshannyou Chemical Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Tangshannyou Chemical Industries Co (SHSE:600409) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥5.22, compared to a current price of ¥7.17 — trading 37.4% above its estimated fair value. The current ROA % is 3.84%, which is 17% above median its 10-year median of 3.29 and 12% above the Chemicals industry median of 3.43. Tangshannyou Chemical Industries Co's overall GF Score™ is 62/100 with 6 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 Tangshannyou Chemical Industries Co (SHSE:600409), the current ROA % is 3.84% as of Jun. 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 Tangshannyou Chemical Industries Co (SHSE:600409) Overvalued in 2026?
Based on GuruFocus' analysis, Tangshannyou Chemical Industries Co stock appears to be overvalued.
The current stock price of ¥7.17 is trading 37.4% above its estimated GF Value™ of ¥5.22.
GuruFocus considers Tangshannyou Chemical Industries Co to be Significantly Overvalued.
Key valuation signals for SHSE:600409:
ROA %: 3.84% (17% above median its 10-year median of 3.29)
GF Value™: ¥5.22 vs. price of ¥7.17 (37.4% above fair value)
Industry Position: 12% above the Chemicals median (#1147 of 1617)
No single metric tells the full story. See the SHSE:600409 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tangshan Sanyou Chemical Industries Co Ltd is principally engaged in the production and sale of chemical products. Sanyou's technical process includes squeezing and pressing method, solid phase, and liquid phase. The company offers dense and light soda ash, hydration dense and extrusion dense soda ash, normal, low salt, super-low salt, and special low soda ash, industrial soda ash, food additive soda ash, viscose fiber, PVC and caustic soda products. In addition, the company offers salt products comprising industry salt, refined powder salt, industrial washing brine and magnesium chloride.
62GF Score
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