ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. New China Life Insurance Co's annualizedNet Income for the quarter that ended in Mar. 2026 was €3,264 Mil.
New China Life Insurance Co's average Total Assets over the quarter that ended in Mar. 2026 was €231,480 Mil. Therefore, New China Life Insurance Co's annualized ROA % for the quarter that ended in Mar. 2026 was 1.41%.
The historical rank and industry rank for New China Life Insurance Co's ROA % or its related term are showing as below:
STU:NCL'
s ROA % Range Over the Past 10 Years
Min: 0.67 Med: 1.46 Max: 2.02
Current: 2.02
During the past 13 years, New China Life Insurance Co's highest ROA % was 2.02%. The lowest was 0.67%. And the median was 1.46%.
STU:NCL's ROA % is ranked worse than 57.71% of 506
companies
in the Insurance industry
Industry Median: 2.7
vs STU:NCL: 2.02
New China Life Insurance Co (STU:NCL) 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.
* 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 Insurance - Life subindustry, New China Life Insurance 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.
New China Life Insurance Co ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, New China Life Insurance Co's ROA % distribution charts can be found below:
* The bar in red indicates where New China Life Insurance 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.
New China Life Insurance Co (STU:NCL) has a ROA % of 1.41% 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 New China Life Insurance Co and its competitors. This is near median its historical median of 1.46. Over the past decade, New China Life Insurance Co's ROA % has ranged from 0.67 to 2.02. According to the industry distribution chart, New China Life Insurance Co ranks #292 out of 506 companies in the Insurance industry, placing it in the top 57.7%.
Is New China Life Insurance Co's ROA % too high?
New China Life Insurance Co's current ROA % of 1.41% is near median its 10-year median of 1.46. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 2.02. The Insurance industry median ROA % is 2.70. New China Life Insurance Co's value of 1.41% is 47.8% below this industry median. Based on the distribution chart, New China Life Insurance Co ranks #292 out of 506 companies in the Insurance industry, which is below the industry midpoint. Overall, New China Life Insurance Co has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does New China Life Insurance Co's ROA % compare to AFL and MET?
According to the Insurance industry distribution chart, New China Life Insurance Co ranks #292 out of 506 companies for ROA %. This places New China Life Insurance Co in the lower half of its industry. The industry median ROA % is 2.70. New China Life Insurance Co's value of 1.41% is 47.8% below this benchmark. Historically, New China Life Insurance Co's own ROA % has ranged from 0.67 to 2.02 over the past decade. While the company's 10-year median is 1.46 vs. the industry median of 2.70, New China Life Insurance 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 Insurance company?
The median ROA % among Insurance companies is 2.70, based on 506 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. New China Life Insurance Co's current ROA % of 1.41% is 47.8% 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 New China Life Insurance Co and its competitors. For the Insurance industry, the median ROA % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New China Life Insurance Co's current ROA % is 1.41%, which is near median its own 10-year median of 1.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New China Life Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, New China Life Insurance Co (STU:NCL) is currently considered Modestly Overvalued. The stock's GF Value™ is €4.09, compared to a current price of €5.10 — trading 24.7% above its estimated fair value. The current ROA % is 1.41%, which is near median its 10-year median of 1.46 and 47.8% below the Insurance industry median of 2.70. New China Life Insurance Co's overall GF Score™ is 64/100 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 New China Life Insurance Co (STU:NCL), the current ROA % is 1.41% 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 New China Life Insurance Co (STU:NCL) Overvalued in 2026?
Based on GuruFocus' analysis, New China Life Insurance Co stock appears to be overvalued.
The current stock price of €5.10 is trading 24.7% above its estimated GF Value™ of €4.09.
GuruFocus considers New China Life Insurance Co to be Modestly Overvalued.
Key valuation signals for STU:NCL:
ROA %: 1.41% (near median its 10-year median of 1.46)
GF Value™: €4.09 vs. price of €5.10 (24.7% above fair value)
Industry Position: 47.8% below the Insurance median (#292 of 506)
No single metric tells the full story. See the STU:NCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New China Life Insurance Co Ltd is headquartered in Beijing and was established in 1996 by a combination of state-owned enterprises and private firms. It is currently the fourth-largest life insurer in China based on total assets. New China Life offers a wide range of life insurance products and services to both individual and institutional customers through its extensive distribution networks and diverse marketing channels. Additionally, it manages and invests insurance funds through its subsidiaries, including its Asset Management Company and Asset Management Company (Hong Kong).
64GF Score
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