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SHSE:600416'
s ROA % Range Over the Past 10 Years
Min: -9.08 Med: 0.66 Max: 2.1
Current: 1.38
During the past 13 years, Xiangtan Electric Manufacturing Co's highest ROA % was 2.10%. The lowest was -9.08%. And the median was 0.66%.
SHSE:600416's ROA % is ranked worse than 64.04% of 3073
companies
in the Industrial Products industry
Industry Median: 3.06
vs SHSE:600416: 1.38
Xiangtan Electric Manufacturing Co (SHSE:600416) 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.
Xiangtan Electric Manufacturing Co ROA % Related Terms
Xiangtan Electric Manufacturing 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, Xiangtan Electric Manufacturing 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.
Xiangtan Electric Manufacturing Co ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Xiangtan Electric Manufacturing Co's ROA % distribution charts can be found below:
* The bar in red indicates where Xiangtan Electric Manufacturing 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.
Xiangtan Electric Manufacturing Co (SHSE:600416) has a ROA % of 1.21% 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 Xiangtan Electric Manufacturing Co and its competitors. This is 83% above median its historical median of 0.66. According to the industry distribution chart, Xiangtan Electric Manufacturing Co ranks #1968 out of 3073 companies in the Industrial Products industry, placing it in the top 64%.
Is Xiangtan Electric Manufacturing Co's ROA % too high?
Xiangtan Electric Manufacturing Co's current ROA % of 1.21% is 83% above median its 10-year median of 0.66. The Industrial Products industry median ROA % is 3.06. Xiangtan Electric Manufacturing Co's value of 1.21% is 60.5% below this industry median. Based on the distribution chart, Xiangtan Electric Manufacturing Co ranks #1968 out of 3073 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Xiangtan Electric Manufacturing Co has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xiangtan Electric Manufacturing Co's ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Xiangtan Electric Manufacturing Co ranks #1968 out of 3073 companies for ROA %. This places Xiangtan Electric Manufacturing Co in the lower half of its industry. The industry median ROA % is 3.06. Xiangtan Electric Manufacturing Co's value of 1.21% is 60.5% below this benchmark. While the company's 10-year median is 0.66 vs. the industry median of 3.06, Xiangtan Electric Manufacturing 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 3.06, based on 3,073 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. Xiangtan Electric Manufacturing Co's current ROA % of 1.21% is 60.5% 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 Xiangtan Electric Manufacturing Co and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiangtan Electric Manufacturing Co's current ROA % is 1.21%, which is 83% above median its own 10-year median of 0.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiangtan Electric Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Xiangtan Electric Manufacturing Co (SHSE:600416) is currently considered Possible Value Trap. The stock's GF Value™ is ¥14.33, compared to a current price of ¥8.42 — trading 41.2% below its estimated fair value. The current ROA % is 1.21%, which is 83% above median its 10-year median of 0.66 and 60.5% below the Industrial Products industry median of 3.06. Xiangtan Electric Manufacturing Co's overall GF Score™ is 52/100 with 4 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 Xiangtan Electric Manufacturing Co (SHSE:600416), the current ROA % is 1.21% 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 Xiangtan Electric Manufacturing Co (SHSE:600416) Overvalued in 2026?
Based on GuruFocus' analysis, Xiangtan Electric Manufacturing Co stock appears to be undervalued.
The current stock price of ¥8.42 is trading 41.2% below its estimated GF Value™ of ¥14.33.
GuruFocus considers Xiangtan Electric Manufacturing Co to be Possible Value Trap.
Key valuation signals for SHSE:600416:
ROA %: 1.21% (83% above median its 10-year median of 0.66)
GF Value™: ¥14.33 vs. price of ¥8.42 (41.2% below fair value)
Industry Position: 60.5% below the Industrial Products median (#1968 of 3073)
No single metric tells the full story. See the SHSE:600416 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiangtan Electric Manufacturing Co Business Description
Xiangtan Electric Manufacturing Co Ltd is the backbone enterprise of China's electrical industry, the major technologies and equipment production. It is also involved in R&D and is the designated manufacturer of defense equipment.
52GF Score
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