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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shanghai Lianming Machinery Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥88.3 Mil.
Shanghai Lianming Machinery Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥1,792.1 Mil. Therefore, Shanghai Lianming Machinery Co's annualized ROA % for the quarter that ended in Mar. 2026 was 4.92%.
The historical rank and industry rank for Shanghai Lianming Machinery Co's ROA % or its related term are showing as below:
SHSE:603006'
s ROA % Range Over the Past 10 Years
Min: 2.85 Med: 6.09 Max: 12.6
Current: 5.28
During the past 13 years, Shanghai Lianming Machinery Co's highest ROA % was 12.60%. The lowest was 2.85%. And the median was 6.09%.
SHSE:603006's ROA % is ranked better than 68.27% of 1330
companies
in the Vehicles & Parts industry
Industry Median: 3.03
vs SHSE:603006: 5.28
Shanghai Lianming Machinery Co (SHSE:603006) 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.
Shanghai Lianming Machinery Co ROA % Related Terms
Shanghai Lianming Machinery 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.
For the Auto Parts subindustry, Shanghai Lianming Machinery 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.
Shanghai Lianming Machinery Co ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Shanghai Lianming Machinery Co's ROA % distribution charts can be found below:
* The bar in red indicates where Shanghai Lianming Machinery 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.
Shanghai Lianming Machinery Co (SHSE:603006) has a ROA % of 4.92% 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 Shanghai Lianming Machinery Co and its competitors. This is 19% below median its historical median of 6.09. Over the past decade, Shanghai Lianming Machinery Co's ROA % has ranged from 2.85 to 12.60. According to the industry distribution chart, Shanghai Lianming Machinery Co ranks #422 out of 1330 companies in the Vehicles & Parts industry, placing it in the top 31.7%.
Is Shanghai Lianming Machinery Co's ROA % too high?
Shanghai Lianming Machinery Co's current ROA % of 4.92% is 19% below median its 10-year median of 6.09. Over the past 10 years, this metric has ranged from a low of 2.85 to a high of 12.60. The Vehicles & Parts industry median ROA % is 3.03. Shanghai Lianming Machinery Co's value of 4.92% is 62.4% above this industry median. Based on the distribution chart, Shanghai Lianming Machinery Co ranks #422 out of 1330 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Shanghai Lianming Machinery Co has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Lianming Machinery Co's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Shanghai Lianming Machinery Co ranks #422 out of 1330 companies for ROA %. This puts Shanghai Lianming Machinery Co in the upper half of its industry. The industry median ROA % is 3.03. Shanghai Lianming Machinery Co's value of 4.92% is 62.4% above this benchmark. Historically, Shanghai Lianming Machinery Co's own ROA % has ranged from 2.85 to 12.60 over the past decade. While the company's 10-year median is 6.09 vs. the industry median of 3.03, Shanghai Lianming Machinery 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 Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 3.03, based on 1,330 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. Shanghai Lianming Machinery Co's current ROA % of 4.92% is 62.4% 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 Shanghai Lianming Machinery Co and its competitors. For the Vehicles & Parts industry, the median ROA % is 3.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Lianming Machinery Co's current ROA % is 4.92%, which is 19% below median its own 10-year median of 6.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Lianming Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Lianming Machinery Co (SHSE:603006) is currently considered Fairly Valued. The stock's GF Value™ is ¥10.87, compared to a current price of ¥11.29 — trading 3.9% above its estimated fair value. The current ROA % is 4.92%, which is 19% below median its 10-year median of 6.09 and 62.4% above the Vehicles & Parts industry median of 3.03. Shanghai Lianming Machinery Co's overall GF Score™ is 69/100 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 Shanghai Lianming Machinery Co (SHSE:603006), the current ROA % is 4.92% 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 Shanghai Lianming Machinery Co (SHSE:603006) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Lianming Machinery Co stock appears to be overvalued.
The current stock price of ¥11.29 is trading 3.9% above its estimated GF Value™ of ¥10.87.
GuruFocus considers Shanghai Lianming Machinery Co to be Fairly Valued.
Key valuation signals for SHSE:603006:
ROA %: 4.92% (19% below median its 10-year median of 6.09)
GF Value™: ¥10.87 vs. price of ¥11.29 (3.9% above fair value)
Industry Position: 62.4% above the Vehicles & Parts median (#422 of 1330)
No single metric tells the full story. See the SHSE:603006 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Lianming Machinery Co Ltd is a manufacturer of automotive components. The company's products includes car body parts, such as stamping and welding assembly products for automotive OEMs.
69GF Score
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