SHSE:688778's ROA % is ranked better than 61.71% of 3074
companies
in the Industrial Products industry
Industry Median: 3.02
vs SHSE:688778: 4.61
XTC New Energy Materials (Xiamen) Co (SHSE:688778) 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.
XTC New Energy Materials (Xiamen) Co ROA % Related Terms
XTC New Energy Materials (Xiamen) 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 Electrical Equipment & Parts subindustry, XTC New Energy Materials (Xiamen) 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.
XTC New Energy Materials (Xiamen) Co ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, XTC New Energy Materials (Xiamen) Co's ROA % distribution charts can be found below:
* The bar in red indicates where XTC New Energy Materials (Xiamen) Co's ROA % falls into.
* 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.
XTC New Energy Materials (Xiamen) Co (SHSE:688778) has a ROA % of 3.94% 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 XTC New Energy Materials (Xiamen) Co and its competitors. This is near median its historical median of 4.09. Over the past decade, XTC New Energy Materials (Xiamen) Co's ROA % has ranged from 1.72 to 8.60. According to the industry distribution chart, XTC New Energy Materials (Xiamen) Co ranks #1177 out of 3074 companies in the Industrial Products industry, placing it in the top 38.3%.
Is XTC New Energy Materials (Xiamen) Co's ROA % too high?
XTC New Energy Materials (Xiamen) Co's current ROA % of 3.94% is near median its 10-year median of 4.09. Over the past 10 years, this metric has ranged from a low of 1.72 to a high of 8.60. The Industrial Products industry median ROA % is 3.02. XTC New Energy Materials (Xiamen) Co's value of 3.94% is 30.5% above this industry median. Based on the distribution chart, XTC New Energy Materials (Xiamen) Co ranks #1177 out of 3074 companies in the Industrial Products industry, which is above the industry midpoint. Overall, XTC New Energy Materials (Xiamen) Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does XTC New Energy Materials (Xiamen) Co's ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, XTC New Energy Materials (Xiamen) Co ranks #1177 out of 3074 companies for ROA %. This puts XTC New Energy Materials (Xiamen) Co in the upper half of its industry. The industry median ROA % is 3.02. XTC New Energy Materials (Xiamen) Co's value of 3.94% is 30.5% above this benchmark. Historically, XTC New Energy Materials (Xiamen) Co's own ROA % has ranged from 1.72 to 8.60 over the past decade. While the company's 10-year median is 4.09 vs. the industry median of 3.02, XTC New Energy Materials (Xiamen) 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. XTC New Energy Materials (Xiamen) Co's current ROA % of 3.94% is 30.5% 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 XTC New Energy Materials (Xiamen) 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. XTC New Energy Materials (Xiamen) Co's current ROA % is 3.94%, which is near median its own 10-year median of 4.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XTC New Energy Materials (Xiamen) Co stock overvalued right now?
Based on GuruFocus' analysis, XTC New Energy Materials (Xiamen) Co (SHSE:688778) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥62.47, compared to a current price of ¥54.67 — trading 12.5% below its estimated fair value. The current ROA % is 3.94%, which is near median its 10-year median of 4.09 and 30.5% above the Industrial Products industry median of 3.02. XTC New Energy Materials (Xiamen) Co's overall GF Score™ is 84/100 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 XTC New Energy Materials (Xiamen) Co (SHSE:688778), the current ROA % is 3.94% 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 XTC New Energy Materials (Xiamen) Co (SHSE:688778) Overvalued in 2026?
Based on GuruFocus' analysis, XTC New Energy Materials (Xiamen) Co stock appears to be undervalued.
The current stock price of ¥54.67 is trading 12.5% below its estimated GF Value™ of ¥62.47.
GuruFocus considers XTC New Energy Materials (Xiamen) Co to be Modestly Undervalued.
Key valuation signals for SHSE:688778:
ROA %: 3.94% (near median its 10-year median of 4.09)
GF Value™: ¥62.47 vs. price of ¥54.67 (12.5% below fair value)
Industry Position: 30.5% above the Industrial Products median (#1177 of 3074)
No single metric tells the full story. See the SHSE:688778 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XTC New Energy Materials (Xiamen) Co Business Description
XTC New Energy Materials (Xiamen) Co Ltd is engaged in the research and development, production and sales of cathode materials for lithium-ion batteries.
84GF Score
Get the complete analysis for SHSE:688778
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:688778 has been successfully added to your 
