SHSE:603992's ROA % is ranked better than 71.86% of 1777
companies
in the Construction industry
Industry Median: 2.8
vs SHSE:603992: 5.82
Xiamen Solex High-Tech Industries Co (SHSE:603992) 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.
Xiamen Solex High-Tech Industries Co ROA % Related Terms
Xiamen Solex High-Tech Industries 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 Building Products & Equipment subindustry, Xiamen Solex High-Tech Industries 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.
Xiamen Solex High-Tech Industries Co ROA % vs Construction 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.
Xiamen Solex High-Tech Industries Co (SHSE:603992) has a ROA % of 8.50% 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 Xiamen Solex High-Tech Industries Co and its competitors. This is 17% below median its historical median of 10.21. Over the past decade, Xiamen Solex High-Tech Industries Co's ROA % has ranged from 4.65 to 15.86. According to the industry distribution chart, Xiamen Solex High-Tech Industries Co ranks #500 out of 1777 companies in the Construction industry, placing it in the top 28.1%.
Is Xiamen Solex High-Tech Industries Co's ROA % too high?
Xiamen Solex High-Tech Industries Co's current ROA % of 8.50% is 17% below median its 10-year median of 10.21. Over the past 10 years, this metric has ranged from a low of 4.65 to a high of 15.86. The Construction industry median ROA % is 2.80. Xiamen Solex High-Tech Industries Co's value of 8.50% is 203.6% above this industry median. Based on the distribution chart, Xiamen Solex High-Tech Industries Co ranks #500 out of 1777 companies in the Construction industry, which is above the industry midpoint. Overall, Xiamen Solex High-Tech Industries Co has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Solex High-Tech Industries Co's ROA % compare to TT and JCI?
According to the Construction industry distribution chart, Xiamen Solex High-Tech Industries Co ranks #500 out of 1777 companies for ROA %. This puts Xiamen Solex High-Tech Industries Co in the upper half of its industry. The industry median ROA % is 2.80. Xiamen Solex High-Tech Industries Co's value of 8.50% is 203.6% above this benchmark. Historically, Xiamen Solex High-Tech Industries Co's own ROA % has ranged from 4.65 to 15.86 over the past decade. While the company's 10-year median is 10.21 vs. the industry median of 2.80, Xiamen Solex High-Tech Industries 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 Construction company?
The median ROA % among Construction companies is 2.80, based on 1,777 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. Xiamen Solex High-Tech Industries Co's current ROA % of 8.50% is 203.6% 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 Xiamen Solex High-Tech Industries Co and its competitors. For the Construction industry, the median ROA % is 2.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Solex High-Tech Industries Co's current ROA % is 8.50%, which is 17% below median its own 10-year median of 10.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Solex High-Tech Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Solex High-Tech Industries Co (SHSE:603992) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥19.90, compared to a current price of ¥28.37 — trading 42.6% above its estimated fair value. The current ROA % is 8.50%, which is 17% below median its 10-year median of 10.21 and 203.6% above the Construction industry median of 2.80. Xiamen Solex High-Tech Industries Co's overall GF Score™ is 74/100 with 4 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 Xiamen Solex High-Tech Industries Co (SHSE:603992), the current ROA % is 8.50% 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 Xiamen Solex High-Tech Industries Co (SHSE:603992) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Solex High-Tech Industries Co stock appears to be overvalued.
The current stock price of ¥28.37 is trading 42.6% above its estimated GF Value™ of ¥19.90.
GuruFocus considers Xiamen Solex High-Tech Industries Co to be Significantly Overvalued.
Key valuation signals for SHSE:603992:
ROA %: 8.50% (17% below median its 10-year median of 10.21)
GF Value™: ¥19.90 vs. price of ¥28.37 (42.6% above fair value)
Industry Position: 203.6% above the Construction median (#500 of 1777)
No single metric tells the full story. See the SHSE:603992 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen Solex High-Tech Industries Co Business Description
Xiamen Solex High-Tech Industries Co Ltd is engaged in the Research, development, production and sales of bathroom accessories such as shower heads, shower systems, faucets, hoses, riser bars and spare parts.
74GF 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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