SHSE:600691'
s ROA % Range Over the Past 10 Years
Min: -5.78 Med: -0.49 Max: 1.77
Current: -4.47
During the past 13 years, Shanxi Luan Chemical Technology Co's highest ROA % was 1.77%. The lowest was -5.78%. And the median was -0.49%.
SHSE:600691's ROA % is ranked worse than 84.93% of 1613
companies
in the Chemicals industry
Industry Median: 2.9
vs SHSE:600691: -4.47
Shanxi Luan Chemical Technology Co (SHSE:600691) 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.
Shanxi Luan Chemical Technology Co ROA % Related Terms
Shanxi Luan Chemical Technology 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, Shanxi Luan Chemical Technology 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.
Shanxi Luan Chemical Technology Co ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shanxi Luan Chemical Technology Co's ROA % distribution charts can be found below:
* The bar in red indicates where Shanxi Luan Chemical Technology 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.
Shanxi Luan Chemical Technology Co (SHSE:600691) has a ROA % of -1.31% 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 Shanxi Luan Chemical Technology Co and its competitors. According to the industry distribution chart, Shanxi Luan Chemical Technology Co ranks #1370 out of 1613 companies in the Chemicals industry, placing it in the top 84.9%.
Is Shanxi Luan Chemical Technology Co's ROA % too high?
Shanxi Luan Chemical Technology Co's current ROA % is -1.31%. Based on the distribution chart, Shanxi Luan Chemical Technology Co ranks #1370 out of 1613 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Shanxi Luan Chemical Technology Co has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shanxi Luan Chemical Technology Co's ROA % compare to DOW?
According to the Chemicals industry distribution chart, Shanxi Luan Chemical Technology Co ranks #1370 out of 1613 companies for ROA %. This places Shanxi Luan Chemical Technology Co in the lower half of its industry. The industry median ROA % is 2.90. 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. 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 Shanxi Luan Chemical Technology 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. Shanxi Luan Chemical Technology Co's current ROA % is -1.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanxi Luan Chemical Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Shanxi Luan Chemical Technology Co (SHSE:600691) is currently considered Fairly Valued. The stock's GF Value™ is ¥2.16, compared to a current price of ¥2.33 — trading 7.9% above its estimated fair value. The current ROA % is -1.31%. Shanxi Luan Chemical Technology Co's overall GF Score™ is 48/100 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 Shanxi Luan Chemical Technology Co (SHSE:600691), the current ROA % is -1.31% 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 Shanxi Luan Chemical Technology Co (SHSE:600691) Overvalued in 2026?
Based on GuruFocus' analysis, Shanxi Luan Chemical Technology Co stock appears to be overvalued.
The current stock price of ¥2.33 is trading 7.9% above its estimated GF Value™ of ¥2.16.
GuruFocus considers Shanxi Luan Chemical Technology Co to be Fairly Valued.
Key valuation signals for SHSE:600691:
ROA %: -1.31%
GF Value™: ¥2.16 vs. price of ¥2.33 (7.9% above fair value)
No single metric tells the full story. See the SHSE:600691 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanxi Luan Chemical Technology Co Business Description
Shanxi Luan Chemical Technology Co Ltd is engaged in Production and sales of coal chemical products (including agricultural chemical products, basic chemical products, fine chemical products) and chemical equipment, manufacturing of chemical machinery and equipment, research and development of chemical products, etc.
48GF Score
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