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SHSE:688523's ROA % is ranked worse than 55% of 360
companies
in the Aerospace & Defense industry
Industry Median: 2.465
vs SHSE:688523: 1.58
Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) 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 Aerospace Huanyu Communication Technology Co ROA % Related Terms
Hunan Aerospace Huanyu Communication 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.
Hunan Aerospace Huanyu Communication Technology Co ROA % Chart
Hunan Aerospace Huanyu Communication Technology Co Annual Data
* 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 Aerospace Huanyu Communication Technology Co ROA % vs Aerospace & Defense 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.
Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) has a ROA % of 0.24% 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 Aerospace Huanyu Communication Technology Co and its competitors. This is 97% below median its historical median of 9.03. Over the past decade, Hunan Aerospace Huanyu Communication Technology Co's ROA % has ranged from 1.58 to 12.14. According to the industry distribution chart, Hunan Aerospace Huanyu Communication Technology Co ranks #198 out of 360 companies in the Aerospace & Defense industry, placing it in the top 55%.
Is Hunan Aerospace Huanyu Communication Technology Co's ROA % too high?
Hunan Aerospace Huanyu Communication Technology Co's current ROA % of 0.24% is 97% below median its 10-year median of 9.03. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 12.14. The Aerospace & Defense industry median ROA % is 2.47. Hunan Aerospace Huanyu Communication Technology Co's value of 0.24% is 90.3% below this industry median. Based on the distribution chart, Hunan Aerospace Huanyu Communication Technology Co ranks #198 out of 360 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Hunan Aerospace Huanyu Communication Technology Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Aerospace Huanyu Communication Technology Co's ROA % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Hunan Aerospace Huanyu Communication Technology Co ranks #198 out of 360 companies for ROA %. This places Hunan Aerospace Huanyu Communication Technology Co in the lower half of its industry. The industry median ROA % is 2.47. Hunan Aerospace Huanyu Communication Technology Co's value of 0.24% is 90.3% below this benchmark. Historically, Hunan Aerospace Huanyu Communication Technology Co's own ROA % has ranged from 1.58 to 12.14 over the past decade. While the company's 10-year median is 9.03 vs. the industry median of 2.47, Hunan Aerospace Huanyu Communication Technology Co has consistently been below 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 Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.47, based on 360 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 Aerospace Huanyu Communication Technology Co's current ROA % of 0.24% is 90.3% below 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 Aerospace Huanyu Communication Technology Co and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Aerospace Huanyu Communication Technology Co's current ROA % is 0.24%, which is 97% below median its own 10-year median of 9.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Aerospace Huanyu Communication Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥27.32, compared to a current price of ¥43.04 — trading 57.5% above its estimated fair value. The current ROA % is 0.24%, which is 97% below median its 10-year median of 9.03 and 90.3% below the Aerospace & Defense industry median of 2.47. Hunan Aerospace Huanyu Communication Technology Co's overall GF Score™ is 73/100 with 9 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 Aerospace Huanyu Communication Technology Co (SHSE:688523), the current ROA % is 0.24% 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 Aerospace Huanyu Communication Technology Co (SHSE:688523) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Aerospace Huanyu Communication Technology Co stock appears to be overvalued.
The current stock price of ¥43.04 is trading 57.5% above its estimated GF Value™ of ¥27.32.
GuruFocus considers Hunan Aerospace Huanyu Communication Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:688523:
ROA %: 0.24% (97% below median its 10-year median of 9.03)
GF Value™: ¥27.32 vs. price of ¥43.04 (57.5% above fair value)
Industry Position: 90.3% below the Aerospace & Defense median (#198 of 360)
No single metric tells the full story. See the SHSE:688523 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Aerospace Huanyu Communication Technology Co Business Description
Hunan Aerospace Huanyu Communication Technology Co Ltd is mainly engaged in the research, development, manufacturing, and service of spaceborne high-end microwave communication systems, satellite communication systems, aerospace technology equipment, and high-end composite material parts and components. The company is committed to providing product support and engineering application services for majorily aerospace host units.
73GF Score
Get the complete analysis for SHSE:688523
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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