Shandong Xinchao Energy (SHSE:600777) ROA %: 2.17% (As of Jun. 2026) — 30% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SHSE:600777 Shandong Xinchao Energy Corp Ltd SHSE:600777
53 GF Score
Price ¥4.08
GF Value ¥2.06
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Shandong Xinchao Energy ROA %?

Shandong Xinchao Energy SHSE:600777 +0.25% 53 ROA % is 2.17% as of Jun. 2026, which is 30% below its 10-year median of 3.12. GuruFocus rates SHSE:600777 with a GF Score™ of 53/100 and a GF Value™ of ¥2.06 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,037 Oil & Gas companies, Shandong Xinchao Energy ranks worse than 54.77% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shandong Xinchao Energy's annualized Net Income for the quarter that ended in Jun. 2026 was ¥747 Mil. Shandong Xinchao Energy's average Total Assets over the quarter that ended in Jun. 2026 was ¥34,366 Mil. Therefore, Shandong Xinchao Energy's annualized ROA % for the quarter that ended in Jun. 2026 was 2.17%.

The historical rank and industry rank for Shandong Xinchao Energy's ROA % or its related term are showing as below:

SHSE:600777' s ROA % Range Over the Past 10 Years
Min: -10.37   Med: 3.12   Max: 10.87
Current: 1.64

During the past 13 years, Shandong Xinchao Energy's highest ROA % was 10.87%. The lowest was -10.37%. And the median was 3.12%.

SHSE:600777's ROA % is ranked worse than
54.77% of 1037 companies
in the Oil & Gas industry
Industry Median: 2.39 vs SHSE:600777: 1.64

Shandong Xinchao Energy  (SHSE:600777) 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 bank’s 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:

ROA %(Q: Jun. 2026 )
=Net Income/Total Assets
=747.384/34366.327
=(Net Income / Revenue)*(Revenue / Total Assets)
=(747.384 / 6402.048)*(6402.048 / 34366.327)
=Net Margin %*Asset Turnover
=11.67 %*0.1863
=2.17 %

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.


Shandong Xinchao Energy ROA % Related Terms


Shandong Xinchao Energy ROA % Historical Data

* Premium members only.

The historical data trend for Shandong Xinchao Energy's ROA % can be seen below:

* 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.

Shandong Xinchao Energy ROA % Chart

Shandong Xinchao Energy Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.49 10.87 8.00 5.90 3.42

Shandong Xinchao Energy Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.08 4.13 -1.39 1.64 2.17

SHSE:600777 vs COP, EOG, OXY: ROA % Comparison

For the Oil & Gas E&P subindustry, Shandong Xinchao Energy'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 Xinchao Energy ROA % vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Shandong Xinchao Energy's ROA % distribution charts can be found below:

* The bar in red indicates where Shandong Xinchao Energy's ROA % falls into.


SHSE:600777
53GF Score
Shandong Xinchao Energy Corp Ltd SHSE:600777
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shandong Xinchao Energy ROA % Calculation

Shandong Xinchao Energy's annualized ROA % for the fiscal year that ended in Dec. 2025 is calculated as:

ROA %=Net Income (A: Dec. 2025 )/( (Total Assets (A: Dec. 2024 )+Total Assets (A: Dec. 2025 ))/ count )
=1207.215/( (35422.431+35213.402)/ 2 )
=1207.215/35317.9165
=3.42 %

Shandong Xinchao Energy's annualized ROA % for the quarter that ended in Jun. 2026 is calculated as:

ROA %=Net Income (Q: Jun. 2026 )/( (Total Assets (Q: Mar. 2026 )+Total Assets (Q: Jun. 2026 ))/ count )
=747.384/( (34480.005+34252.649)/ 2 )
=747.384/34366.327
=2.17 %

* 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.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 2.17% mean?
Shandong Xinchao Energy (SHSE:600777) has a ROA % of 2.17% 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 Shandong Xinchao Energy and its competitors. This is 30% below median its historical median of 3.12. According to the industry distribution chart, Shandong Xinchao Energy ranks #568 out of 1037 companies in the Oil & Gas industry, placing it in the top 54.8%.
Is Shandong Xinchao Energy's ROA % too high?
Shandong Xinchao Energy's current ROA % of 2.17% is 30% below median its 10-year median of 3.12. The Oil & Gas industry median ROA % is 2.39. Shandong Xinchao Energy's value of 2.17% is 9.2% below this industry median. Based on the distribution chart, Shandong Xinchao Energy ranks #568 out of 1037 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Shandong Xinchao Energy has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Xinchao Energy's ROA % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Shandong Xinchao Energy ranks #568 out of 1037 companies for ROA %. This places Shandong Xinchao Energy in the lower half of its industry. The industry median ROA % is 2.39. Shandong Xinchao Energy's value of 2.17% is 9.2% below this benchmark. While the company's 10-year median is 3.12 vs. the industry median of 2.39, Shandong Xinchao Energy 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 Oil & Gas company?
The median ROA % among Oil & Gas companies is 2.39, based on 1,037 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 Xinchao Energy's current ROA % of 2.17% is 9.2% 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 Shandong Xinchao Energy and its competitors. For the Oil & Gas industry, the median ROA % is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Xinchao Energy's current ROA % is 2.17%, which is 30% below median its own 10-year median of 3.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Xinchao Energy stock overvalued right now?
Based on GuruFocus' analysis, Shandong Xinchao Energy (SHSE:600777) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥2.06, compared to a current price of ¥4.08 — trading 98.1% above its estimated fair value. The current ROA % is 2.17%, which is 30% below median its 10-year median of 3.12 and 9.2% below the Oil & Gas industry median of 2.39. Shandong Xinchao Energy's overall GF Score™ is 53/100 with 3 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 Xinchao Energy (SHSE:600777), the current ROA % is 2.17% 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 Shandong Xinchao Energy (SHSE:600777) Overvalued in 2026?

Based on GuruFocus' analysis, Shandong Xinchao Energy stock appears to be overvalued. The current stock price of ¥4.08 is trading 98.1% above its estimated GF Value™ of ¥2.06. GuruFocus considers Shandong Xinchao Energy to be Significantly Overvalued.

Key valuation signals for SHSE:600777:

  • ROA %: 2.17% (30% below median its 10-year median of 3.12)
  • GF Value™: ¥2.06 vs. price of ¥4.08 (98.1% above fair value)
  • GF Score™: 53/100 with 3 warning signs
  • Industry Position: 9.2% below the Oil & Gas median (#568 of 1037)

No single metric tells the full story. See the SHSE:600777 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shandong Xinchao Energy Business Description

Industry EnergyOil & Gas
Address No. 301, Gangcheng East Street, Floor 14, Building B, Nanshan Century Building, Laishan District, Shandong Province, Yantai, CHN
Shandong Xinchao Energy Corp Ltd is engaged in overseas oil and gas exploration, production, and sale.
53GF Score

Get the complete analysis for SHSE:600777

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥4.08
Price
¥2.06
GF Value