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Shenzhen Sunmoon Microelectronics Co (SHSE:688699) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Shenzhen Sunmoon Microelectronics Co ROA % Related Terms
Shenzhen Sunmoon Microelectronics 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 Electronic Components subindustry, Shenzhen Sunmoon Microelectronics 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.
Shenzhen Sunmoon Microelectronics Co ROA % vs Hardware 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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Shenzhen Sunmoon Microelectronics Co (SHSE:688699) has a ROA % of 14.21% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Shenzhen Sunmoon Microelectronics Co and its competitors. This is near median its historical median of 13.44. According to the industry distribution chart, Shenzhen Sunmoon Microelectronics Co ranks #943 out of 2499 companies in the Hardware industry, placing it in the top 37.7%.
Is Shenzhen Sunmoon Microelectronics Co's ROA % too high?
Shenzhen Sunmoon Microelectronics Co's current ROA % of 14.21% is near median its 10-year median of 13.44. The Hardware industry median ROA % is 2.61. Shenzhen Sunmoon Microelectronics Co's value of 14.21% is 444.4% above this industry median. Based on the distribution chart, Shenzhen Sunmoon Microelectronics Co ranks #943 out of 2499 companies in the Hardware industry, which is above the industry midpoint. Overall, Shenzhen Sunmoon Microelectronics Co has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Sunmoon Microelectronics Co's ROA % compare to APH and GLW?
According to the Hardware industry distribution chart, Shenzhen Sunmoon Microelectronics Co ranks #943 out of 2499 companies for ROA %. This puts Shenzhen Sunmoon Microelectronics Co in the upper half of its industry. The industry median ROA % is 2.61. Shenzhen Sunmoon Microelectronics Co's value of 14.21% is 444.4% above this benchmark. While the company's 10-year median is 13.44 vs. the industry median of 2.61, Shenzhen Sunmoon Microelectronics 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 2.61, based on 2,499 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. Shenzhen Sunmoon Microelectronics Co's current ROA % of 14.21% is 444.4% 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 Shenzhen Sunmoon Microelectronics Co and its competitors. For the Hardware industry, the median ROA % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Sunmoon Microelectronics Co's current ROA % is 14.21%, which is near median its own 10-year median of 13.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Sunmoon Microelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Sunmoon Microelectronics Co (SHSE:688699) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥50.82, compared to a current price of ¥57.99 — trading 14.1% above its estimated fair value. The current ROA % is 14.21%, which is near median its 10-year median of 13.44 and 444.4% above the Hardware industry median of 2.61. Shenzhen Sunmoon Microelectronics Co's overall GF Score™ is 73/100 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 Shenzhen Sunmoon Microelectronics Co (SHSE:688699), the current ROA % is 14.21% as of Jun. 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 Shenzhen Sunmoon Microelectronics Co (SHSE:688699) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Sunmoon Microelectronics Co stock appears to be overvalued.
The current stock price of ¥57.99 is trading 14.1% above its estimated GF Value™ of ¥50.82.
GuruFocus considers Shenzhen Sunmoon Microelectronics Co to be Modestly Overvalued.
Key valuation signals for SHSE:688699:
ROA %: 14.21% (near median its 10-year median of 13.44)
GF Value™: ¥50.82 vs. price of ¥57.99 (14.1% above fair value)
Industry Position: 444.4% above the Hardware median (#943 of 2499)
No single metric tells the full story. See the SHSE:688699 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Sunmoon Microelectronics Co Ltd is engaged in the research and development design, packaging testing and sales of integrated circuit. Further, it is also involved in the technical development and related technical services of integrated circuits and related electronic application products.
73GF Score
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