Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hunan Fangsheng Pharmaceutical Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥354 Mil.
Hunan Fangsheng Pharmaceutical Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥3,056 Mil. Therefore, Hunan Fangsheng Pharmaceutical Co's annualized ROA % for the quarter that ended in Mar. 2026 was 11.57%.
Hunan Fangsheng Pharmaceutical Co (SHSE:603998) 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.
Hunan Fangsheng Pharmaceutical Co ROA % Related Terms
Hunan Fangsheng Pharmaceutical 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 Drug Manufacturers - Specialty & Generic subindustry, Hunan Fangsheng Pharmaceutical 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.
Hunan Fangsheng Pharmaceutical Co ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hunan Fangsheng Pharmaceutical Co's ROA % distribution charts can be found below:
* The bar in red indicates where Hunan Fangsheng Pharmaceutical 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.
Hunan Fangsheng Pharmaceutical Co (SHSE:603998) has a ROA % of 11.57% 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 Hunan Fangsheng Pharmaceutical Co and its competitors. This is 114% above median its historical median of 5.41. Over the past decade, Hunan Fangsheng Pharmaceutical Co's ROA % has ranged from 2.80 to 10.16. According to the industry distribution chart, Hunan Fangsheng Pharmaceutical Co ranks #172 out of 1007 companies in the Drug Manufacturers industry, placing it in the top 17.1%.
Is Hunan Fangsheng Pharmaceutical Co's ROA % too high?
Hunan Fangsheng Pharmaceutical Co's current ROA % of 11.57% is 114% above median its 10-year median of 5.41. Over the past 10 years, this metric has ranged from a low of 2.80 to a high of 10.16. The Drug Manufacturers industry median ROA % is 2.53. Hunan Fangsheng Pharmaceutical Co's value of 11.57% is 357.3% above this industry median. Based on the distribution chart, Hunan Fangsheng Pharmaceutical Co ranks #172 out of 1007 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Hunan Fangsheng Pharmaceutical Co has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Fangsheng Pharmaceutical Co's ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Hunan Fangsheng Pharmaceutical Co ranks #172 out of 1007 companies for ROA %. This places Hunan Fangsheng Pharmaceutical Co in the top 17% of its industry — outperforming the majority of peers. The industry median ROA % is 2.53. Hunan Fangsheng Pharmaceutical Co's value of 11.57% is 357.3% above this benchmark. Historically, Hunan Fangsheng Pharmaceutical Co's own ROA % has ranged from 2.80 to 10.16 over the past decade. While the company's 10-year median is 5.41 vs. the industry median of 2.53, Hunan Fangsheng Pharmaceutical 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.53, based on 1,007 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. Hunan Fangsheng Pharmaceutical Co's current ROA % of 11.57% is 357.3% 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 Hunan Fangsheng Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Fangsheng Pharmaceutical Co's current ROA % is 11.57%, which is 114% above median its own 10-year median of 5.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Fangsheng Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Fangsheng Pharmaceutical Co (SHSE:603998) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥12.06, compared to a current price of ¥10.78 — trading 10.6% below its estimated fair value. The current ROA % is 11.57%, which is 114% above median its 10-year median of 5.41 and 357.3% above the Drug Manufacturers industry median of 2.53. Hunan Fangsheng Pharmaceutical Co's overall GF Score™ is 86/100 with 2 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 Hunan Fangsheng Pharmaceutical Co (SHSE:603998), the current ROA % is 11.57% 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 Hunan Fangsheng Pharmaceutical Co (SHSE:603998) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Fangsheng Pharmaceutical Co stock appears to be undervalued.
The current stock price of ¥10.78 is trading 10.6% below its estimated GF Value™ of ¥12.06.
GuruFocus considers Hunan Fangsheng Pharmaceutical Co to be Modestly Undervalued.
Key valuation signals for SHSE:603998:
ROA %: 11.57% (114% above median its 10-year median of 5.41)
GF Value™: ¥12.06 vs. price of ¥10.78 (10.6% below fair value)
Industry Position: 357.3% above the Drug Manufacturers median (#172 of 1007)
No single metric tells the full story. See the SHSE:603998 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Fangsheng Pharmaceutical Co Ltd is engaged in pharmaceutical business. The company's business scope covers the production and sales of tablets, capsules, granules, oral suspension, powder, suppository, powder-injection, tinctures, spray lotion, small volume injections, and bulk pharmaceutical chemicals. Its product offerings include Cefixime Tablets, Cefpiramide for Injection, Cefprozil Tablets, Fleroxacin Dispersible Tablets, and others.
86GF Score
Get the complete analysis for SHSE:603998
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:603998 has been successfully added to your 
