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SHSE:600771's ROA % is ranked worse than 50.25% of 1009
companies
in the Drug Manufacturers industry
Industry Median: 2.74
vs SHSE:600771: 2.69
GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) 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.
GuangYuYuan Chinese Herbal Medicine Co ROA % Related Terms
GuangYuYuan Chinese Herbal Medicine 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.
GuangYuYuan Chinese Herbal Medicine Co ROA % Chart
GuangYuYuan Chinese Herbal Medicine Co Annual Data
For the Drug Manufacturers - General subindustry, GuangYuYuan Chinese Herbal Medicine 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.
GuangYuYuan Chinese Herbal Medicine Co ROA % vs Drug Manufacturers 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.
GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) has a ROA % of 10.72% 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 GuangYuYuan Chinese Herbal Medicine Co and its competitors. This is 428% above median its historical median of 2.03. According to the industry distribution chart, GuangYuYuan Chinese Herbal Medicine Co ranks #507 out of 1009 companies in the Drug Manufacturers industry, placing it in the top 50.2%.
Is GuangYuYuan Chinese Herbal Medicine Co's ROA % too high?
GuangYuYuan Chinese Herbal Medicine Co's current ROA % of 10.72% is 428% above median its 10-year median of 2.03. The Drug Manufacturers industry median ROA % is 2.74. GuangYuYuan Chinese Herbal Medicine Co's value of 10.72% is 291.2% above this industry median. Based on the distribution chart, GuangYuYuan Chinese Herbal Medicine Co ranks #507 out of 1009 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, GuangYuYuan Chinese Herbal Medicine Co has a GF Score™ of 52/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GuangYuYuan Chinese Herbal Medicine Co's ROA % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, GuangYuYuan Chinese Herbal Medicine Co ranks #507 out of 1009 companies for ROA %. This places GuangYuYuan Chinese Herbal Medicine Co in the lower half of its industry. The industry median ROA % is 2.74. GuangYuYuan Chinese Herbal Medicine Co's value of 10.72% is 291.2% above this benchmark. While the company's 10-year median is 2.03 vs. the industry median of 2.74, GuangYuYuan Chinese Herbal Medicine 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.74, based on 1,009 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. GuangYuYuan Chinese Herbal Medicine Co's current ROA % of 10.72% is 291.2% 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 GuangYuYuan Chinese Herbal Medicine Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GuangYuYuan Chinese Herbal Medicine Co's current ROA % is 10.72%, which is 428% above median its own 10-year median of 2.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GuangYuYuan Chinese Herbal Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥24.06, compared to a current price of ¥15.04 — trading 37.5% below its estimated fair value. The current ROA % is 10.72%, which is 428% above median its 10-year median of 2.03 and 291.2% above the Drug Manufacturers industry median of 2.74. GuangYuYuan Chinese Herbal Medicine Co's overall GF Score™ is 52/100 with 1 warning sign 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 GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771), the current ROA % is 10.72% 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 GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) Overvalued in 2026?
Based on GuruFocus' analysis, GuangYuYuan Chinese Herbal Medicine Co stock appears to be undervalued.
The current stock price of ¥15.04 is trading 37.5% below its estimated GF Value™ of ¥24.06.
GuruFocus considers GuangYuYuan Chinese Herbal Medicine Co to be Significantly Undervalued.
Key valuation signals for SHSE:600771:
ROA %: 10.72% (428% above median its 10-year median of 2.03)
GF Value™: ¥24.06 vs. price of ¥15.04 (37.5% below fair value)
Industry Position: 291.2% above the Drug Manufacturers median (#507 of 1009)
No single metric tells the full story. See the SHSE:600771 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GuangYuYuan Chinese Herbal Medicine Co Business Description
GuangYuYuan Chinese Herbal Medicine Co Ltd distributes pharmaceutical products. Its products include far plate turtle age wine bottle, niuhuang qingxin pills, boutique angong niuhuang wan, modified turtle age wine, ding kundan, and many more.
52GF Score
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