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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Medical System Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was €132.8 Mil.
China Medical System Holdings's average Total Assets over the quarter that ended in Dec. 2025 was €2,307.2 Mil. Therefore, China Medical System Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 5.76%.
The historical rank and industry rank for China Medical System Holdings's ROA % or its related term are showing as below:
STU:2M7C'
s ROA % Range Over the Past 10 Years
Min: 8.01 Med: 17.4 Max: 21.83
Current: 8.01
During the past 13 years, China Medical System Holdings's highest ROA % was 21.83%. The lowest was 8.01%. And the median was 17.40%.
STU:2M7C's ROA % is ranked better than 76.02% of 1009
companies
in the Drug Manufacturers industry
Industry Median: 2.72
vs STU:2M7C: 8.01
China Medical System Holdings (STU:2M7C) 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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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 Medical System Holdings ROA % Related Terms
China Medical System Holdings 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 Drug Manufacturers - Specialty & Generic subindustry, China Medical System Holdings'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 Medical System Holdings ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, China Medical System Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where China Medical System Holdings'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 two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
China Medical System Holdings (STU:2M7C) has a ROA % of 5.76% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on China Medical System Holdings and its competitors. This is 67% below median its historical median of 17.40. Over the past decade, China Medical System Holdings' ROA % has ranged from 8.01 to 21.83. According to the industry distribution chart, China Medical System Holdings ranks #242 out of 1009 companies in the Drug Manufacturers industry, placing it in the top 24%.
Is China Medical System Holdings' ROA % too high?
China Medical System Holdings' current ROA % of 5.76% is 67% below median its 10-year median of 17.40. Over the past 10 years, this metric has ranged from a low of 8.01 to a high of 21.83. The Drug Manufacturers industry median ROA % is 2.72. China Medical System Holdings' value of 5.76% is 111.8% above this industry median. Based on the distribution chart, China Medical System Holdings ranks #242 out of 1009 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, China Medical System Holdings has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Medical System Holdings' ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, China Medical System Holdings ranks #242 out of 1009 companies for ROA %. This places China Medical System Holdings in the top 24% of its industry — outperforming the majority of peers. The industry median ROA % is 2.72. China Medical System Holdings' value of 5.76% is 111.8% above this benchmark. Historically, China Medical System Holdings' own ROA % has ranged from 8.01 to 21.83 over the past decade. While the company's 10-year median is 17.40 vs. the industry median of 2.72, China Medical System Holdings 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.72, based on 1,009 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 Medical System Holdings's current ROA % of 5.76% is 111.8% 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 Medical System Holdings and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Medical System Holdings's current ROA % is 5.76%, which is 67% below median its own 10-year median of 17.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Medical System Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Medical System Holdings (STU:2M7C) is currently considered Fairly Valued. The stock's GF Value™ is €1.36, compared to a current price of €1.32 — trading 2.9% below its estimated fair value. The current ROA % is 5.76%, which is 67% below median its 10-year median of 17.40 and 111.8% above the Drug Manufacturers industry median of 2.72. China Medical System Holdings' overall GF Score™ is 76/100 with 3 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 Medical System Holdings (STU:2M7C), the current ROA % is 5.76% as of Dec. 2025. 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 Medical System Holdings (STU:2M7C) Overvalued in 2026?
Based on GuruFocus' analysis, China Medical System Holdings stock appears to be undervalued.
The current stock price of €1.32 is trading 2.9% below its estimated GF Value™ of €1.36.
GuruFocus considers China Medical System Holdings to be Fairly Valued.
Key valuation signals for STU:2M7C:
ROA %: 5.76% (67% below median its 10-year median of 17.40)
GF Value™: €1.36 vs. price of €1.32 (2.9% below fair value)
Industry Position: 111.8% above the Drug Manufacturers median (#242 of 1009)
No single metric tells the full story. See the STU:2M7C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Medical System Holdings Ltd is a holding company. Along with its subsidiaries, it is engaged in the research and development, production, promotion and sale of medicines. The company's reportable segments are: (i) Integrated pharmaceuticals portfolio and (ii) Skin diseases related business. The majority of the company's revenue, which consists of pharmaceutical products sales, is derived from the integrated pharmaceuticals portfolio segment.
76GF Score
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