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Guangdong Fenghua Advanced Technology (Holding) Co (SZSE:000636) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Guangdong Fenghua Advanced Technology (Holding) Co ROA % Related Terms
Guangdong Fenghua Advanced Technology (Holding) 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.
Guangdong Fenghua Advanced Technology (Holding) Co ROA % Chart
Guangdong Fenghua Advanced Technology (Holding) Co Annual Data
* 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.
Guangdong Fenghua Advanced Technology (Holding) Co ROA % vs Hardware 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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Guangdong Fenghua Advanced Technology (Holding) Co (SZSE:000636) has a ROA % of 4.27% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Guangdong Fenghua Advanced Technology (Holding) Co and its competitors. This is 36% above median its historical median of 3.14. Over the past decade, Guangdong Fenghua Advanced Technology (Holding) Co's ROA % has ranged from 1.10 to 15.21. According to the industry distribution chart, Guangdong Fenghua Advanced Technology (Holding) Co ranks #1305 out of 2497 companies in the Hardware industry, placing it in the top 52.3%.
Is Guangdong Fenghua Advanced Technology (Holding) Co's ROA % too high?
Guangdong Fenghua Advanced Technology (Holding) Co's current ROA % of 4.27% is 36% above median its 10-year median of 3.14. Over the past 10 years, this metric has ranged from a low of 1.10 to a high of 15.21. The Hardware industry median ROA % is 2.78. Guangdong Fenghua Advanced Technology (Holding) Co's value of 4.27% is 53.6% above this industry median. Based on the distribution chart, Guangdong Fenghua Advanced Technology (Holding) Co ranks #1305 out of 2497 companies in the Hardware industry, which is below the industry midpoint. Overall, Guangdong Fenghua Advanced Technology (Holding) Co has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Fenghua Advanced Technology (Holding) Co's ROA % compare to APH and GLW?
According to the Hardware industry distribution chart, Guangdong Fenghua Advanced Technology (Holding) Co ranks #1305 out of 2497 companies for ROA %. This places Guangdong Fenghua Advanced Technology (Holding) Co in the lower half of its industry. The industry median ROA % is 2.78. Guangdong Fenghua Advanced Technology (Holding) Co's value of 4.27% is 53.6% above this benchmark. Historically, Guangdong Fenghua Advanced Technology (Holding) Co's own ROA % has ranged from 1.10 to 15.21 over the past decade. While the company's 10-year median is 3.14 vs. the industry median of 2.78, Guangdong Fenghua Advanced Technology (Holding) 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 Hardware company?
The median ROA % among Hardware companies is 2.78, based on 2,497 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. Guangdong Fenghua Advanced Technology (Holding) Co's current ROA % of 4.27% is 53.6% 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 Guangdong Fenghua Advanced Technology (Holding) Co and its competitors. For the Hardware industry, the median ROA % is 2.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangdong Fenghua Advanced Technology (Holding) Co's current ROA % is 4.27%, which is 36% above median its own 10-year median of 3.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Fenghua Advanced Technology (Holding) Co stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Fenghua Advanced Technology (Holding) Co (SZSE:000636) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥20.93, compared to a current price of ¥58.48 — trading 179.4% above its estimated fair value. The current ROA % is 4.27%, which is 36% above median its 10-year median of 3.14 and 53.6% above the Hardware industry median of 2.78. Guangdong Fenghua Advanced Technology (Holding) Co's overall GF Score™ is 64/100 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 Guangdong Fenghua Advanced Technology (Holding) Co (SZSE:000636), the current ROA % is 4.27% as of Jun. 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 Guangdong Fenghua Advanced Technology (Holding) Co (SZSE:000636) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Fenghua Advanced Technology (Holding) Co stock appears to be overvalued.
The current stock price of ¥58.48 is trading 179.4% above its estimated GF Value™ of ¥20.93.
GuruFocus considers Guangdong Fenghua Advanced Technology (Holding) Co to be Significantly Overvalued.
Key valuation signals for SZSE:000636:
ROA %: 4.27% (36% above median its 10-year median of 3.14)
GF Value™: ¥20.93 vs. price of ¥58.48 (179.4% above fair value)
Industry Position: 53.6% above the Hardware median (#1305 of 2497)
No single metric tells the full story. See the SZSE:000636 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Fenghua Advanced Technology (Holding) Co Ltd is a China-based company engaged in the electronic information industry in China. It is engaged in the production of high-end components, electronic materials, special electronic equipment and other basic electronic information products.
64GF Score
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