SHSE:600426's ROA % is ranked better than 80.22% of 1613
companies
in the Chemicals industry
Industry Median: 2.9
vs SHSE:600426: 7.56
Shandong Hualu-hengsheng Chemical Co (SHSE:600426) 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 Hualu-hengsheng Chemical Co ROA % Related Terms
Shandong Hualu-hengsheng Chemical 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 Chemicals subindustry, Shandong Hualu-hengsheng Chemical 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 Hualu-hengsheng Chemical 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Shandong Hualu-hengsheng Chemical Co (SHSE:600426) has a ROA % of 8.87% 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 Hualu-hengsheng Chemical Co and its competitors. This is near median its historical median of 9.17. Over the past decade, Shandong Hualu-hengsheng Chemical Co's ROA % has ranged from 6.92 to 29.54. According to the industry distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #319 out of 1613 companies in the Chemicals industry, placing it in the top 19.8%.
Is Shandong Hualu-hengsheng Chemical Co's ROA % too high?
Shandong Hualu-hengsheng Chemical Co's current ROA % of 8.87% is near median its 10-year median of 9.17. Over the past 10 years, this metric has ranged from a low of 6.92 to a high of 29.54. The Chemicals industry median ROA % is 2.90. Shandong Hualu-hengsheng Chemical Co's value of 8.87% is 205.9% above this industry median. Based on the distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #319 out of 1613 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Shandong Hualu-hengsheng Chemical Co has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Hualu-hengsheng Chemical Co's ROA % compare to DOW?
According to the Chemicals industry distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #319 out of 1613 companies for ROA %. This places Shandong Hualu-hengsheng Chemical Co in the top 20% of its industry — outperforming the majority of peers. The industry median ROA % is 2.90. Shandong Hualu-hengsheng Chemical Co's value of 8.87% is 205.9% above this benchmark. Historically, Shandong Hualu-hengsheng Chemical Co's own ROA % has ranged from 6.92 to 29.54 over the past decade. While the company's 10-year median is 9.17 vs. the industry median of 2.90, Shandong Hualu-hengsheng Chemical 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 2.90, based on 1,613 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 Hualu-hengsheng Chemical Co's current ROA % of 8.87% is 205.9% 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 Hualu-hengsheng Chemical Co and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Hualu-hengsheng Chemical Co's current ROA % is 8.87%, which is near median its own 10-year median of 9.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Hualu-hengsheng Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Hualu-hengsheng Chemical Co (SHSE:600426) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥30.39, compared to a current price of ¥24.30 — trading 20% below its estimated fair value. The current ROA % is 8.87%, which is near median its 10-year median of 9.17 and 205.9% above the Chemicals industry median of 2.90. Shandong Hualu-hengsheng Chemical Co's overall GF Score™ is 95/100 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 Hualu-hengsheng Chemical Co (SHSE:600426), the current ROA % is 8.87% 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 Hualu-hengsheng Chemical Co (SHSE:600426) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Hualu-hengsheng Chemical Co stock appears to be undervalued.
The current stock price of ¥24.30 is trading 20% below its estimated GF Value™ of ¥30.39.
GuruFocus considers Shandong Hualu-hengsheng Chemical Co to be Modestly Undervalued.
Key valuation signals for SHSE:600426:
ROA %: 8.87% (near median its 10-year median of 9.17)
GF Value™: ¥30.39 vs. price of ¥24.30 (20% below fair value)
Industry Position: 205.9% above the Chemicals median (#319 of 1613)
No single metric tells the full story. See the SHSE:600426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Hualu-hengsheng Chemical Co Business Description
Shandong Hualu-Hengsheng Chemical Co Ltd is engaged in the production and sale of chemical products and chemical fertilizers, as well as power generation and heating businesses. The company's main products include new energy and new materials related products such as caprolactam, adipic acid, and others, chemical fertilizers such as urea and others, organic amines such as dimethylformamide (DMF), monomethylamine, and others, and acetic acid and derivatives products such as acetic acid, acetic anhydride, and others.
95GF Score
Get the complete analysis for SHSE:600426
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:600426 has been successfully added to your 
