ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nanjing Chemical Fibre Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥48.6 Mil.
Nanjing Chemical Fibre Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥1,524.4 Mil. Therefore, Nanjing Chemical Fibre Co's annualized ROA % for the quarter that ended in Mar. 2026 was 3.19%.
The historical rank and industry rank for Nanjing Chemical Fibre Co's ROA % or its related term are showing as below:
SHSE:600889'
s ROA % Range Over the Past 10 Years
Min: -29.19 Med: -7.38 Max: 4.13
Current: -3.91
During the past 13 years, Nanjing Chemical Fibre Co's highest ROA % was 4.13%. The lowest was -29.19%. And the median was -7.38%.
SHSE:600889's ROA % is ranked worse than 84.08% of 1614
companies
in the Chemicals industry
Industry Median: 2.9
vs SHSE:600889: -3.91
Nanjing Chemical Fibre Co (SHSE:600889) 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 Chemicals subindustry, Nanjing Chemical Fibre 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.
Nanjing Chemical Fibre Co ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nanjing Chemical Fibre Co's ROA % distribution charts can be found below:
* The bar in red indicates where Nanjing Chemical Fibre 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.
Nanjing Chemical Fibre Co (SHSE:600889) has a ROA % of 3.19% 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 Nanjing Chemical Fibre Co and its competitors. According to the industry distribution chart, Nanjing Chemical Fibre Co ranks #1357 out of 1614 companies in the Chemicals industry, placing it in the top 84.1%.
Is Nanjing Chemical Fibre Co's ROA % too high?
Nanjing Chemical Fibre Co's current ROA % is 3.19%. The Chemicals industry median ROA % is 2.90. Nanjing Chemical Fibre Co's value of 3.19% is 10% above this industry median. Based on the distribution chart, Nanjing Chemical Fibre Co ranks #1357 out of 1614 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Nanjing Chemical Fibre Co has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nanjing Chemical Fibre Co's ROA % compare to DOW?
According to the Chemicals industry distribution chart, Nanjing Chemical Fibre Co ranks #1357 out of 1614 companies for ROA %. This places Nanjing Chemical Fibre Co in the lower half of its industry. The industry median ROA % is 2.90. Nanjing Chemical Fibre Co's value of 3.19% is 10% above this benchmark. 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 1,614 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. Nanjing Chemical Fibre Co's current ROA % of 3.19% is 10% 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 Nanjing Chemical Fibre 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. Nanjing Chemical Fibre Co's current ROA % is 3.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanjing Chemical Fibre Co stock overvalued right now?
Based on GuruFocus' analysis, Nanjing Chemical Fibre Co (SHSE:600889) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥5.84, compared to a current price of ¥15.47 — trading 164.9% above its estimated fair value. The current ROA % is 3.19% and 10% above the Chemicals industry median of 2.90. Nanjing Chemical Fibre Co's overall GF Score™ is 45/100 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 Nanjing Chemical Fibre Co (SHSE:600889), the current ROA % is 3.19% 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 Nanjing Chemical Fibre Co (SHSE:600889) Overvalued in 2026?
Based on GuruFocus' analysis, Nanjing Chemical Fibre Co stock appears to be overvalued.
The current stock price of ¥15.47 is trading 164.9% above its estimated GF Value™ of ¥5.84.
GuruFocus considers Nanjing Chemical Fibre Co to be Significantly Overvalued.
Key valuation signals for SHSE:600889:
ROA %: 3.19%
GF Value™: ¥5.84 vs. price of ¥15.47 (164.9% above fair value)
Industry Position: 10% above the Chemicals median (#1357 of 1614)
No single metric tells the full story. See the SHSE:600889 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nanjing Chemical Fibre Co Ltd is a China-based company mainly engaged in the production and operation of viscose fiber and tap water. The company produces Jinling brand viscose fiber which is sold in China and exported to South Korea, Japan, Vietnam, Europe and the United States. Its water plant is located at Yanziji, Qixia District, Nanjing, and has a water supply capacity of approx. 150,000 tons/day. The company provides tap water service to enterprises in the economic and technological development zone and its surrounding factories and residential quarters.
45GF Score
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