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SHSE:601686's ROA % is ranked better than 56.31% of 634
companies
in the Steel industry
Industry Median: 1.93
vs SHSE:601686: 2.71
Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686) 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.
Tianjin You Fa Steel Pipe Group Stock Co ROA % Related Terms
Tianjin You Fa Steel Pipe Group Stock 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.
Tianjin You Fa Steel Pipe Group Stock Co ROA % Chart
Tianjin You Fa Steel Pipe Group Stock Co Annual Data
* 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.
Tianjin You Fa Steel Pipe Group Stock Co ROA % vs Steel 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.
Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686) has a ROA % of 2.18% 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 Tianjin You Fa Steel Pipe Group Stock Co and its competitors. This is 56% below median its historical median of 4.99. Over the past decade, Tianjin You Fa Steel Pipe Group Stock Co's ROA % has ranged from 1.82 to 11.04. According to the industry distribution chart, Tianjin You Fa Steel Pipe Group Stock Co ranks #277 out of 634 companies in the Steel industry, placing it in the top 43.7%.
Is Tianjin You Fa Steel Pipe Group Stock Co's ROA % too high?
Tianjin You Fa Steel Pipe Group Stock Co's current ROA % of 2.18% is 56% below median its 10-year median of 4.99. Over the past 10 years, this metric has ranged from a low of 1.82 to a high of 11.04. The Steel industry median ROA % is 1.93. Tianjin You Fa Steel Pipe Group Stock Co's value of 2.18% is 13% above this industry median. Based on the distribution chart, Tianjin You Fa Steel Pipe Group Stock Co ranks #277 out of 634 companies in the Steel industry, which is above the industry midpoint. Overall, Tianjin You Fa Steel Pipe Group Stock Co has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tianjin You Fa Steel Pipe Group Stock Co's ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, Tianjin You Fa Steel Pipe Group Stock Co ranks #277 out of 634 companies for ROA %. This puts Tianjin You Fa Steel Pipe Group Stock Co in the upper half of its industry. The industry median ROA % is 1.93. Tianjin You Fa Steel Pipe Group Stock Co's value of 2.18% is 13% above this benchmark. Historically, Tianjin You Fa Steel Pipe Group Stock Co's own ROA % has ranged from 1.82 to 11.04 over the past decade. While the company's 10-year median is 4.99 vs. the industry median of 1.93, Tianjin You Fa Steel Pipe Group Stock 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 Steel company?
The median ROA % among Steel companies is 1.93, based on 634 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. Tianjin You Fa Steel Pipe Group Stock Co's current ROA % of 2.18% is 13% 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 Tianjin You Fa Steel Pipe Group Stock Co and its competitors. For the Steel industry, the median ROA % is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tianjin You Fa Steel Pipe Group Stock Co's current ROA % is 2.18%, which is 56% below median its own 10-year median of 4.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tianjin You Fa Steel Pipe Group Stock Co stock overvalued right now?
Based on GuruFocus' analysis, Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686) is currently considered Fairly Valued. The stock's GF Value™ is ¥5.46, compared to a current price of ¥5.08 — trading 7% below its estimated fair value. The current ROA % is 2.18%, which is 56% below median its 10-year median of 4.99 and 13% above the Steel industry median of 1.93. Tianjin You Fa Steel Pipe Group Stock Co's overall GF Score™ is 65/100 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 Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686), the current ROA % is 2.18% 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 Tianjin You Fa Steel Pipe Group Stock Co (SHSE:601686) Overvalued in 2026?
Based on GuruFocus' analysis, Tianjin You Fa Steel Pipe Group Stock Co stock appears to be undervalued.
The current stock price of ¥5.08 is trading 7% below its estimated GF Value™ of ¥5.46.
GuruFocus considers Tianjin You Fa Steel Pipe Group Stock Co to be Fairly Valued.
Key valuation signals for SHSE:601686:
ROA %: 2.18% (56% below median its 10-year median of 4.99)
GF Value™: ¥5.46 vs. price of ¥5.08 (7% below fair value)
Industry Position: 13% above the Steel median (#277 of 634)
No single metric tells the full story. See the SHSE:601686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tianjin You Fa Steel Pipe Group Stock Co Business Description
Tianjin You Fa Steel Pipe Group Stock Co Ltd formerly Tianjin Youfa Steel Pipe Group Co Ltd is primarily involved in the development, production and sales of welded steel pipes. It offers welded pipes, hot-dip galvanized steel pipes, steel-plastic composite pipes, stainless steel composite pipes, spiral steel pipes and others.
65GF Score
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ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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