ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Xiamen Leading Optics Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥281.8 Mil.
Xiamen Leading Optics Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥1,936.3 Mil. Therefore, Xiamen Leading Optics Co's annualized ROA % for the quarter that ended in Mar. 2026 was 14.55%.
The historical rank and industry rank for Xiamen Leading Optics Co's ROA % or its related term are showing as below:
SHSE:605118'
s ROA % Range Over the Past 10 Years
Min: 9.72 Med: 14.55 Max: 42.09
Current: 14.74
During the past 10 years, Xiamen Leading Optics Co's highest ROA % was 42.09%. The lowest was 9.72%. And the median was 14.55%.
SHSE:605118's ROA % is ranked better than 95.19% of 2496
companies
in the Hardware industry
Industry Median: 2.275
vs SHSE:605118: 14.74
Xiamen Leading Optics Co (SHSE:605118) 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.
* 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 Electronic Components subindustry, Xiamen Leading Optics 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 Leading Optics Co ROA % vs Hardware Industry
For the Hardware industry and Technology sector, Xiamen Leading Optics Co's ROA % distribution charts can be found below:
* The bar in red indicates where Xiamen Leading Optics 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.
Xiamen Leading Optics Co (SHSE:605118) has a ROA % of 14.55% 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 Leading Optics Co and its competitors. This is near median its historical median of 14.55. Over the past decade, Xiamen Leading Optics Co's ROA % has ranged from 9.72 to 42.09. According to the industry distribution chart, Xiamen Leading Optics Co ranks #120 out of 2496 companies in the Hardware industry, placing it in the top 4.8%.
Is Xiamen Leading Optics Co's ROA % too high?
Xiamen Leading Optics Co's current ROA % of 14.55% is near median its 10-year median of 14.55. Over the past 10 years, this metric has ranged from a low of 9.72 to a high of 42.09. The Hardware industry median ROA % is 2.28. Xiamen Leading Optics Co's value of 14.55% is 539.6% above this industry median. Based on the distribution chart, Xiamen Leading Optics Co ranks #120 out of 2496 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Xiamen Leading Optics Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Leading Optics Co's ROA % compare to APH and GLW?
According to the Hardware industry distribution chart, Xiamen Leading Optics Co ranks #120 out of 2496 companies for ROA %. This places Xiamen Leading Optics Co in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 2.28. Xiamen Leading Optics Co's value of 14.55% is 539.6% above this benchmark. Historically, Xiamen Leading Optics Co's own ROA % has ranged from 9.72 to 42.09 over the past decade. While the company's 10-year median is 14.55 vs. the industry median of 2.28, Xiamen Leading Optics 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 Hardware company?
The median ROA % among Hardware companies is 2.28, based on 2,496 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 Leading Optics Co's current ROA % of 14.55% is 539.6% 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 Leading Optics Co and its competitors. For the Hardware industry, the median ROA % is 2.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Leading Optics Co's current ROA % is 14.55%, which is near median its own 10-year median of 14.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Leading Optics Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Leading Optics Co (SHSE:605118) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥27.93, compared to a current price of ¥36.16 — trading 29.5% above its estimated fair value. The current ROA % is 14.55%, which is near median its 10-year median of 14.55 and 539.6% above the Hardware industry median of 2.28. Xiamen Leading Optics Co's overall GF Score™ is 88/100 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 Leading Optics Co (SHSE:605118), the current ROA % is 14.55% 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 Leading Optics Co (SHSE:605118) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Leading Optics Co stock appears to be overvalued.
The current stock price of ¥36.16 is trading 29.5% above its estimated GF Value™ of ¥27.93.
GuruFocus considers Xiamen Leading Optics Co to be Modestly Overvalued.
Key valuation signals for SHSE:605118:
ROA %: 14.55% (near median its 10-year median of 14.55)
GF Value™: ¥27.93 vs. price of ¥36.16 (29.5% above fair value)
Industry Position: 539.6% above the Hardware median (#120 of 2496)
No single metric tells the full story. See the SHSE:605118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen Leading Optics Co Ltd is engaged in design, production and sales of optical lenses. The company's products include Surveillance Lens; Automotives Lens; Machine Vision Lens; ITS Lens; Low Distortion Lens; Consumer Imaging; and Panoramic Lens. Its products are used in multiple fields of application including security surveillance, medical and biological studies and researches, intelligent traffic systems, video conference, intelligent home security, sports camera and many more.
88GF Score
Get the complete analysis for SHSE:605118
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