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Guangdong Liantai Environmental Protection Co (SHSE:603797) 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 (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.
Guangdong Liantai Environmental Protection Co ROA % Related Terms
Guangdong Liantai Environmental Protection 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.
Guangdong Liantai Environmental Protection Co ROA % Chart
Guangdong Liantai Environmental Protection 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.
Guangdong Liantai Environmental Protection Co ROA % vs Waste Management 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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Guangdong Liantai Environmental Protection Co (SHSE:603797) has a ROA % of 1.36% 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 Guangdong Liantai Environmental Protection Co and its competitors. This is 49% below median its historical median of 2.66. Over the past decade, Guangdong Liantai Environmental Protection Co's ROA % has ranged from 1.27 to 3.83. According to the industry distribution chart, Guangdong Liantai Environmental Protection Co ranks #135 out of 247 companies in the Waste Management industry, placing it in the top 54.7%.
Is Guangdong Liantai Environmental Protection Co's ROA % too high?
Guangdong Liantai Environmental Protection Co's current ROA % of 1.36% is 49% below median its 10-year median of 2.66. Over the past 10 years, this metric has ranged from a low of 1.27 to a high of 3.83. The Waste Management industry median ROA % is 1.96. Guangdong Liantai Environmental Protection Co's value of 1.36% is 30.6% below this industry median. Based on the distribution chart, Guangdong Liantai Environmental Protection Co ranks #135 out of 247 companies in the Waste Management industry, which is below the industry midpoint. Overall, Guangdong Liantai Environmental Protection Co has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Liantai Environmental Protection Co's ROA % compare to WM and RSG?
According to the Waste Management industry distribution chart, Guangdong Liantai Environmental Protection Co ranks #135 out of 247 companies for ROA %. This places Guangdong Liantai Environmental Protection Co in the lower half of its industry. The industry median ROA % is 1.96. Guangdong Liantai Environmental Protection Co's value of 1.36% is 30.6% below this benchmark. Historically, Guangdong Liantai Environmental Protection Co's own ROA % has ranged from 1.27 to 3.83 over the past decade. While the company's 10-year median is 2.66 vs. the industry median of 1.96, Guangdong Liantai Environmental Protection 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 Waste Management company?
The median ROA % among Waste Management companies is 1.96, based on 247 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. Guangdong Liantai Environmental Protection Co's current ROA % of 1.36% is 30.6% 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 Guangdong Liantai Environmental Protection Co and its competitors. For the Waste Management industry, the median ROA % is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangdong Liantai Environmental Protection Co's current ROA % is 1.36%, which is 49% below median its own 10-year median of 2.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Liantai Environmental Protection Co stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Liantai Environmental Protection Co (SHSE:603797) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥3.93, compared to a current price of ¥4.79 — trading 21.9% above its estimated fair value. The current ROA % is 1.36%, which is 49% below median its 10-year median of 2.66 and 30.6% below the Waste Management industry median of 1.96. Guangdong Liantai Environmental Protection Co's overall GF Score™ is 67/100 with 11 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 Guangdong Liantai Environmental Protection Co (SHSE:603797), the current ROA % is 1.36% 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 Guangdong Liantai Environmental Protection Co (SHSE:603797) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Liantai Environmental Protection Co stock appears to be overvalued.
The current stock price of ¥4.79 is trading 21.9% above its estimated GF Value™ of ¥3.93.
GuruFocus considers Guangdong Liantai Environmental Protection Co to be Modestly Overvalued.
Key valuation signals for SHSE:603797:
ROA %: 1.36% (49% below median its 10-year median of 2.66)
GF Value™: ¥3.93 vs. price of ¥4.79 (21.9% above fair value)
Industry Position: 30.6% below the Waste Management median (#135 of 247)
No single metric tells the full story. See the SHSE:603797 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Liantai Environmental Protection Co Ltd is a China-based company engaged in operating sewage treatment project and supporting pipe network and ecological environment treatment project. The company produces and sells special equipment for environmental pollution prevention, and offers technical consultation and support services, among other activities. Some of the company's projects are Shantou dragon ball water purification plant, Shaoyang Jiangbei Wastewater treatment plant, and Shaoyang Yangxiqiao wastewater treatment plant, among others.
67GF Score
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