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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. MeiHua Holdings Group Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥472 Mil.
MeiHua Holdings Group Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥25,942 Mil. Therefore, MeiHua Holdings Group Co's annualized ROA % for the quarter that ended in Mar. 2026 was 1.82%.
The historical rank and industry rank for MeiHua Holdings Group Co's ROA % or its related term are showing as below:
SHSE:600873'
s ROA % Range Over the Past 10 Years
Min: 5.13 Med: 9.28 Max: 19.38
Current: 9.43
During the past 13 years, MeiHua Holdings Group Co's highest ROA % was 19.38%. The lowest was 5.13%. And the median was 9.28%.
SHSE:600873's ROA % is ranked better than 86.41% of 1612
companies
in the Chemicals industry
Industry Median: 2.915
vs SHSE:600873: 9.43
MeiHua Holdings Group Co (SHSE:600873) 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.
* 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 Chemicals subindustry, MeiHua Holdings Group 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.
MeiHua Holdings Group Co ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, MeiHua Holdings Group Co's ROA % distribution charts can be found below:
* The bar in red indicates where MeiHua Holdings Group 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.
MeiHua Holdings Group Co (SHSE:600873) has a ROA % of 1.82% 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 MeiHua Holdings Group Co and its competitors. This is 80% below median its historical median of 9.28. Over the past decade, MeiHua Holdings Group Co's ROA % has ranged from 5.13 to 19.38. According to the industry distribution chart, MeiHua Holdings Group Co ranks #219 out of 1612 companies in the Chemicals industry, placing it in the top 13.6%.
Is MeiHua Holdings Group Co's ROA % too high?
MeiHua Holdings Group Co's current ROA % of 1.82% is 80% below median its 10-year median of 9.28. Over the past 10 years, this metric has ranged from a low of 5.13 to a high of 19.38. The Chemicals industry median ROA % is 2.92. MeiHua Holdings Group Co's value of 1.82% is 37.6% below this industry median. Based on the distribution chart, MeiHua Holdings Group Co ranks #219 out of 1612 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, MeiHua Holdings Group Co has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MeiHua Holdings Group Co's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, MeiHua Holdings Group Co ranks #219 out of 1612 companies for ROA %. This places MeiHua Holdings Group Co in the top 14% of its industry — outperforming the majority of peers. The industry median ROA % is 2.92. MeiHua Holdings Group Co's value of 1.82% is 37.6% below this benchmark. Historically, MeiHua Holdings Group Co's own ROA % has ranged from 5.13 to 19.38 over the past decade. While the company's 10-year median is 9.28 vs. the industry median of 2.92, MeiHua Holdings Group 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 a Chemicals company?
The median ROA % among Chemicals companies is 2.92, based on 1,612 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. MeiHua Holdings Group Co's current ROA % of 1.82% is 37.6% 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 MeiHua Holdings Group Co and its competitors. For the Chemicals industry, the median ROA % is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MeiHua Holdings Group Co's current ROA % is 1.82%, which is 80% below median its own 10-year median of 9.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MeiHua Holdings Group Co stock overvalued right now?
Based on GuruFocus' analysis, MeiHua Holdings Group Co (SHSE:600873) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.23, compared to a current price of ¥8.82 — trading 13.8% below its estimated fair value. The current ROA % is 1.82%, which is 80% below median its 10-year median of 9.28 and 37.6% below the Chemicals industry median of 2.92. MeiHua Holdings Group Co's overall GF Score™ is 81/100 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 MeiHua Holdings Group Co (SHSE:600873), the current ROA % is 1.82% 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 MeiHua Holdings Group Co (SHSE:600873) Overvalued in 2026?
Based on GuruFocus' analysis, MeiHua Holdings Group Co stock appears to be undervalued.
The current stock price of ¥8.82 is trading 13.8% below its estimated GF Value™ of ¥10.23.
GuruFocus considers MeiHua Holdings Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:600873:
ROA %: 1.82% (80% below median its 10-year median of 9.28)
GF Value™: ¥10.23 vs. price of ¥8.82 (13.8% below fair value)
Industry Position: 37.6% below the Chemicals median (#219 of 1612)
No single metric tells the full story. See the SHSE:600873 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MeiHua Holdings Group Co Ltd is a China-based supplier of amino acid nutrition and health solution. Its products include Food additives, condiment, colloid, Amino acids, capsule, fertilizer, bulk by-products (such as corn germ and protein powder) and among others. The company mainly operates its businesses in the domestic and overseas markets.
81GF Score
Get the complete analysis for SHSE:600873
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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