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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Chengdu Xingrong Environment Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥2,110 Mil.
Chengdu Xingrong Environment Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥51,409 Mil. Therefore, Chengdu Xingrong Environment Co's annualized ROA % for the quarter that ended in Mar. 2026 was 4.10%.
Chengdu Xingrong Environment Co (SZSE:000598) 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.
Chengdu Xingrong Environment Co ROA % Related Terms
Chengdu Xingrong Environment 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 Utilities - Regulated Water subindustry, Chengdu Xingrong Environment 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.
Chengdu Xingrong Environment Co ROA % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Chengdu Xingrong Environment Co's ROA % distribution charts can be found below:
* The bar in red indicates where Chengdu Xingrong Environment 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.
Chengdu Xingrong Environment Co (SZSE:000598) has a ROA % of 4.10% 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 Chengdu Xingrong Environment Co and its competitors. This is 10% below median its historical median of 4.57. Over the past decade, Chengdu Xingrong Environment Co's ROA % has ranged from 4.03 to 5.62. According to the industry distribution chart, Chengdu Xingrong Environment Co ranks #193 out of 507 companies in the Utilities - Regulated industry, placing it in the top 38.1%.
Is Chengdu Xingrong Environment Co's ROA % too high?
Chengdu Xingrong Environment Co's current ROA % of 4.10% is 10% below median its 10-year median of 4.57. Over the past 10 years, this metric has ranged from a low of 4.03 to a high of 5.62. The Utilities - Regulated industry median ROA % is 3.07. Chengdu Xingrong Environment Co's value of 4.10% is 33.6% above this industry median. Based on the distribution chart, Chengdu Xingrong Environment Co ranks #193 out of 507 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Chengdu Xingrong Environment Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chengdu Xingrong Environment Co's ROA % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Chengdu Xingrong Environment Co ranks #193 out of 507 companies for ROA %. This puts Chengdu Xingrong Environment Co in the upper half of its industry. The industry median ROA % is 3.07. Chengdu Xingrong Environment Co's value of 4.10% is 33.6% above this benchmark. Historically, Chengdu Xingrong Environment Co's own ROA % has ranged from 4.03 to 5.62 over the past decade. While the company's 10-year median is 4.57 vs. the industry median of 3.07, Chengdu Xingrong Environment 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 Utilities - Regulated company?
The median ROA % among Utilities - Regulated companies is 3.07, based on 507 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. Chengdu Xingrong Environment Co's current ROA % of 4.10% is 33.6% 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 Chengdu Xingrong Environment Co and its competitors. For the Utilities - Regulated industry, the median ROA % is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chengdu Xingrong Environment Co's current ROA % is 4.10%, which is 10% below median its own 10-year median of 4.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengdu Xingrong Environment Co stock overvalued right now?
Based on GuruFocus' analysis, Chengdu Xingrong Environment Co (SZSE:000598) is currently considered Fairly Valued. The stock's GF Value™ is ¥7.23, compared to a current price of ¥7.13 — trading 1.4% below its estimated fair value. The current ROA % is 4.10%, which is 10% below median its 10-year median of 4.57 and 33.6% above the Utilities - Regulated industry median of 3.07. Chengdu Xingrong Environment Co's overall GF Score™ is 90/100 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 Chengdu Xingrong Environment Co (SZSE:000598), the current ROA % is 4.10% 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 Chengdu Xingrong Environment Co (SZSE:000598) Overvalued in 2026?
Based on GuruFocus' analysis, Chengdu Xingrong Environment Co stock appears to be undervalued.
The current stock price of ¥7.13 is trading 1.4% below its estimated GF Value™ of ¥7.23.
GuruFocus considers Chengdu Xingrong Environment Co to be Fairly Valued.
Key valuation signals for SZSE:000598:
ROA %: 4.10% (10% below median its 10-year median of 4.57)
GF Value™: ¥7.23 vs. price of ¥7.13 (1.4% below fair value)
Industry Position: 33.6% above the Utilities - Regulated median (#193 of 507)
No single metric tells the full story. See the SZSE:000598 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chengdu Xingrong Environment Co Ltd is a large-scale water and environmental protection integrated service provider in China. It is mainly engaged in the production and supply of tap water, sewage treatment, utilization of recycled water, sludge disposal, landfill leachate treatment, and waste incineration power generation. The company integrates investment, research, and development, design, construction and operation, and has a complete industrial chain.
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