SHSE:688248's ROA % is ranked better than 83.83% of 3074
companies
in the Industrial Products industry
Industry Median: 3.02
vs SHSE:688248: 8.72
China Southern Power Grid Technology Co (SHSE:688248) 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.
China Southern Power Grid Technology Co ROA % Related Terms
China Southern Power Grid Technology 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.
China Southern Power Grid Technology Co ROA % Chart
China Southern Power Grid Technology Co Annual Data
For the Electrical Equipment & Parts subindustry, China Southern Power Grid Technology 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.
China Southern Power Grid Technology Co ROA % vs Industrial Products 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.
China Southern Power Grid Technology Co (SHSE:688248) has a ROA % of 3.97% 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 China Southern Power Grid Technology Co and its competitors. This is 38% below median its historical median of 6.40. Over the past decade, China Southern Power Grid Technology Co's ROA % has ranged from 3.45 to 8.72. According to the industry distribution chart, China Southern Power Grid Technology Co ranks #497 out of 3074 companies in the Industrial Products industry, placing it in the top 16.2%.
Is China Southern Power Grid Technology Co's ROA % too high?
China Southern Power Grid Technology Co's current ROA % of 3.97% is 38% below median its 10-year median of 6.40. Over the past 10 years, this metric has ranged from a low of 3.45 to a high of 8.72. The Industrial Products industry median ROA % is 3.02. China Southern Power Grid Technology Co's value of 3.97% is 31.5% above this industry median. Based on the distribution chart, China Southern Power Grid Technology Co ranks #497 out of 3074 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, China Southern Power Grid Technology Co has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Southern Power Grid Technology Co's ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, China Southern Power Grid Technology Co ranks #497 out of 3074 companies for ROA %. This places China Southern Power Grid Technology Co in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 3.02. China Southern Power Grid Technology Co's value of 3.97% is 31.5% above this benchmark. Historically, China Southern Power Grid Technology Co's own ROA % has ranged from 3.45 to 8.72 over the past decade. While the company's 10-year median is 6.40 vs. the industry median of 3.02, China Southern Power Grid Technology 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.02, based on 3,074 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. China Southern Power Grid Technology Co's current ROA % of 3.97% is 31.5% 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 China Southern Power Grid Technology Co and its competitors. For the Industrial Products industry, the median ROA % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Southern Power Grid Technology Co's current ROA % is 3.97%, which is 38% below median its own 10-year median of 6.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Southern Power Grid Technology Co stock overvalued right now?
Based on GuruFocus' analysis, China Southern Power Grid Technology Co (SHSE:688248) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥46.37, compared to a current price of ¥67.83 — trading 46.3% above its estimated fair value. The current ROA % is 3.97%, which is 38% below median its 10-year median of 6.40 and 31.5% above the Industrial Products industry median of 3.02. China Southern Power Grid Technology Co's overall GF Score™ is 90/100 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 China Southern Power Grid Technology Co (SHSE:688248), the current ROA % is 3.97% 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 China Southern Power Grid Technology Co (SHSE:688248) Overvalued in 2026?
Based on GuruFocus' analysis, China Southern Power Grid Technology Co stock appears to be overvalued.
The current stock price of ¥67.83 is trading 46.3% above its estimated GF Value™ of ¥46.37.
GuruFocus considers China Southern Power Grid Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:688248:
ROA %: 3.97% (38% below median its 10-year median of 6.40)
GF Value™: ¥46.37 vs. price of ¥67.83 (46.3% above fair value)
Industry Position: 31.5% above the Industrial Products median (#497 of 3074)
No single metric tells the full story. See the SHSE:688248 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Southern Power Grid Technology Co Business Description
China Southern Power Grid Technology Co Ltd is engaged in providing a comprehensive solution of technical services and smart equipment to ensure the safe operation and efficiency improvement of the power energy system.
90GF Score
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