SHSE:688425's ROA % is ranked better than 64.67% of 3071
companies
in the Industrial Products industry
Industry Median: 3.04
vs SHSE:688425: 5.14
China Railway Construction Heavy Industry (SHSE:688425) 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 Railway Construction Heavy Industry ROA % Related Terms
China Railway Construction Heavy Industry 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 Railway Construction Heavy Industry ROA % Chart
China Railway Construction Heavy Industry Annual Data
For the Specialty Industrial Machinery subindustry, China Railway Construction Heavy Industry'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 Railway Construction Heavy Industry 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 Railway Construction Heavy Industry (SHSE:688425) has a ROA % of 3.64% 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 Railway Construction Heavy Industry and its competitors. This is 54% below median its historical median of 7.94. Over the past decade, China Railway Construction Heavy Industry's ROA % has ranged from 5.14 to 10.24. According to the industry distribution chart, China Railway Construction Heavy Industry ranks #1085 out of 3071 companies in the Industrial Products industry, placing it in the top 35.3%.
Is China Railway Construction Heavy Industry's ROA % too high?
China Railway Construction Heavy Industry's current ROA % of 3.64% is 54% below median its 10-year median of 7.94. Over the past 10 years, this metric has ranged from a low of 5.14 to a high of 10.24. The Industrial Products industry median ROA % is 3.04. China Railway Construction Heavy Industry's value of 3.64% is 19.7% above this industry median. Based on the distribution chart, China Railway Construction Heavy Industry ranks #1085 out of 3071 companies in the Industrial Products industry, which is above the industry midpoint. Overall, China Railway Construction Heavy Industry has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Construction Heavy Industry's ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, China Railway Construction Heavy Industry ranks #1085 out of 3071 companies for ROA %. This puts China Railway Construction Heavy Industry in the upper half of its industry. The industry median ROA % is 3.04. China Railway Construction Heavy Industry's value of 3.64% is 19.7% above this benchmark. Historically, China Railway Construction Heavy Industry's own ROA % has ranged from 5.14 to 10.24 over the past decade. While the company's 10-year median is 7.94 vs. the industry median of 3.04, China Railway Construction Heavy Industry 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 3.04, based on 3,071 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 Railway Construction Heavy Industry's current ROA % of 3.64% is 19.7% 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 Railway Construction Heavy Industry and its competitors. For the Industrial Products industry, the median ROA % is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Construction Heavy Industry's current ROA % is 3.64%, which is 54% below median its own 10-year median of 7.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Construction Heavy Industry stock overvalued right now?
Based on GuruFocus' analysis, China Railway Construction Heavy Industry (SHSE:688425) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥4.80, compared to a current price of ¥4.16 — trading 13.3% below its estimated fair value. The current ROA % is 3.64%, which is 54% below median its 10-year median of 7.94 and 19.7% above the Industrial Products industry median of 3.04. China Railway Construction Heavy Industry's overall GF Score™ is 82/100 with 5 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 Railway Construction Heavy Industry (SHSE:688425), the current ROA % is 3.64% 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 Railway Construction Heavy Industry (SHSE:688425) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Construction Heavy Industry stock appears to be undervalued.
The current stock price of ¥4.16 is trading 13.3% below its estimated GF Value™ of ¥4.80.
GuruFocus considers China Railway Construction Heavy Industry to be Modestly Undervalued.
Key valuation signals for SHSE:688425:
ROA %: 3.64% (54% below median its 10-year median of 7.94)
GF Value™: ¥4.80 vs. price of ¥4.16 (13.3% below fair value)
Industry Position: 19.7% above the Industrial Products median (#1085 of 3071)
No single metric tells the full story. See the SHSE:688425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Construction Heavy Industry Business Description
China Railway Construction Heavy Industry Corp Ltd is engaged in the design, research and development, manufacturing, sales, leasing and service of roadheader equipment, rail transit equipment and special professional equipment.
82GF 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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