SHSE:688727's ROA % is ranked better than 51.22% of 1025
companies
in the Semiconductors industry
Industry Median: 2.47
vs SHSE:688727: 2.77
Xiamen Hengkun New Material Technology Co (SHSE:688727) 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.
Xiamen Hengkun New Material Technology Co ROA % Related Terms
Xiamen Hengkun New Material 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.
Xiamen Hengkun New Material Technology Co ROA % Chart
Xiamen Hengkun New Material Technology Co Annual Data
For the Semiconductor Equipment & Materials subindustry, Xiamen Hengkun New Material 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.
Xiamen Hengkun New Material Technology Co ROA % vs Semiconductors 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.
Xiamen Hengkun New Material Technology Co (SHSE:688727) has a ROA % of 2.63% 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 Hengkun New Material Technology Co and its competitors. This is 23% below median its historical median of 3.43. Over the past decade, Xiamen Hengkun New Material Technology Co's ROA % has ranged from 0.69 to 8.24. According to the industry distribution chart, Xiamen Hengkun New Material Technology Co ranks #500 out of 1025 companies in the Semiconductors industry, placing it in the top 48.8%.
Is Xiamen Hengkun New Material Technology Co's ROA % too high?
Xiamen Hengkun New Material Technology Co's current ROA % of 2.63% is 23% below median its 10-year median of 3.43. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 8.24. The Semiconductors industry median ROA % is 2.47. Xiamen Hengkun New Material Technology Co's value of 2.63% is 6.5% above this industry median. Based on the distribution chart, Xiamen Hengkun New Material Technology Co ranks #500 out of 1025 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Xiamen Hengkun New Material Technology Co has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Xiamen Hengkun New Material Technology Co's ROA % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Xiamen Hengkun New Material Technology Co ranks #500 out of 1025 companies for ROA %. This puts Xiamen Hengkun New Material Technology Co in the upper half of its industry. The industry median ROA % is 2.47. Xiamen Hengkun New Material Technology Co's value of 2.63% is 6.5% above this benchmark. Historically, Xiamen Hengkun New Material Technology Co's own ROA % has ranged from 0.69 to 8.24 over the past decade. While the company's 10-year median is 3.43 vs. the industry median of 2.47, Xiamen Hengkun New Material 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 a Semiconductors company?
The median ROA % among Semiconductors companies is 2.47, based on 1,025 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 Hengkun New Material Technology Co's current ROA % of 2.63% is 6.5% 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 Xiamen Hengkun New Material Technology Co and its competitors. For the Semiconductors industry, the median ROA % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Hengkun New Material Technology Co's current ROA % is 2.63%, which is 23% below median its own 10-year median of 3.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Hengkun New Material Technology Co stock overvalued right now?
Xiamen Hengkun New Material Technology Co (SHSE:688727) has a current ROA % of 2.63%. The current ROA % is 2.63%, which is 23% below median its 10-year median of 3.43 and 6.5% above the Semiconductors industry median of 2.47. Xiamen Hengkun New Material Technology Co's overall GF Score™ is 34/100 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 Xiamen Hengkun New Material Technology Co (SHSE:688727), the current ROA % is 2.63% 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.
Xiamen Hengkun New Material Technology Co Business Description
Xiamen Hengkun New Material Technology Co Ltd is principally engaged in the research and development, production and sales of semiconductor materials, and its products are mainly used in the process of integrated circuit chip manufacturing. Additionally the company is into new material technology promotion services, integrated circuit manufacturing, engineering and technology research and experimental development, manufacturing of special materials for electronics and sales of chemical products, electronic special materials, machinery and equipment, and electronic products. Also, the company is into non-residential real estate leasing.
34GF Score
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