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Renhe Pharmacy CoSZSE:000650 -1.29%83 ROA % is 7.54% as of Jun. 2026, which is 23% below its 10-year median of 9.75. GuruFocus rates SZSE:000650 with a GF Score™ of 83/100 and a GF Value™ of ¥5.07 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,007 Drug Manufacturers companies, Renhe Pharmacy Co ranks better than 62.86% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Renhe Pharmacy Co's annualizedNet Income for the quarter that ended in Jun. 2026 was ¥606 Mil.
Renhe Pharmacy Co's average Total Assets over the quarter that ended in Jun. 2026 was ¥8,045 Mil. Therefore, Renhe Pharmacy Co's annualized ROA % for the quarter that ended in Jun. 2026 was 7.54%.
The historical rank and industry rank for Renhe Pharmacy Co's ROA % or its related term are showing as below:
SZSE:000650'
s ROA % Range Over the Past 10 Years
Min: 4.96 Med: 9.75 Max: 11.53
Current: 4.96
During the past 13 years, Renhe Pharmacy Co's highest ROA % was 11.53%. The lowest was 4.96%. And the median was 9.75%.
SZSE:000650's ROA % is ranked better than 62.86% of 1007
companies
in the Drug Manufacturers industry
Industry Median: 2.47
vs SZSE:000650: 4.96
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.
Renhe Pharmacy Co ROA % Related Terms
Renhe Pharmacy Co ROA % Historical Data
* Premium members only.
The historical data trend for Renhe Pharmacy Co's ROA % can be seen below:
* 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, Renhe Pharmacy 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.
Renhe Pharmacy Co ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Renhe Pharmacy Co's ROA % distribution charts can be found below:
* The bar in red indicates where Renhe Pharmacy 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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Renhe Pharmacy Co (SZSE:000650) has a ROA % of 7.54% 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 Renhe Pharmacy Co and its competitors. This is 23% below median its historical median of 9.75. Over the past decade, Renhe Pharmacy Co's ROA % has ranged from 4.96 to 11.53. According to the industry distribution chart, Renhe Pharmacy Co ranks #374 out of 1007 companies in the Drug Manufacturers industry, placing it in the top 37.1%.
Is Renhe Pharmacy Co's ROA % too high?
Renhe Pharmacy Co's current ROA % of 7.54% is 23% below median its 10-year median of 9.75. Over the past 10 years, this metric has ranged from a low of 4.96 to a high of 11.53. The Drug Manufacturers industry median ROA % is 2.47. Renhe Pharmacy Co's value of 7.54% is 205.3% above this industry median. Based on the distribution chart, Renhe Pharmacy Co ranks #374 out of 1007 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Renhe Pharmacy Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Renhe Pharmacy Co's ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Renhe Pharmacy Co ranks #374 out of 1007 companies for ROA %. This puts Renhe Pharmacy Co in the upper half of its industry. The industry median ROA % is 2.47. Renhe Pharmacy Co's value of 7.54% is 205.3% above this benchmark. Historically, Renhe Pharmacy Co's own ROA % has ranged from 4.96 to 11.53 over the past decade. While the company's 10-year median is 9.75 vs. the industry median of 2.47, Renhe Pharmacy 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.47, based on 1,007 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. Renhe Pharmacy Co's current ROA % of 7.54% is 205.3% 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 Renhe Pharmacy Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renhe Pharmacy Co's current ROA % is 7.54%, which is 23% below median its own 10-year median of 9.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renhe Pharmacy Co stock overvalued right now?
Based on GuruFocus' analysis, Renhe Pharmacy Co (SZSE:000650) is currently considered Fairly Valued. The stock's GF Value™ is ¥5.07, compared to a current price of ¥5.37 — trading 5.9% above its estimated fair value. The current ROA % is 7.54%, which is 23% below median its 10-year median of 9.75 and 205.3% above the Drug Manufacturers industry median of 2.47. Renhe Pharmacy Co's overall GF Score™ is 83/100 with 1 warning sign 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 Renhe Pharmacy Co (SZSE:000650), the current ROA % is 7.54% 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 Renhe Pharmacy Co (SZSE:000650) Overvalued in 2026?
Based on GuruFocus' analysis, Renhe Pharmacy Co stock appears to be overvalued.
The current stock price of ¥5.37 is trading 5.9% above its estimated GF Value™ of ¥5.07.
GuruFocus considers Renhe Pharmacy Co to be Fairly Valued.
Key valuation signals for SZSE:000650:
ROA %: 7.54% (23% below median its 10-year median of 9.75)
GF Value™: ¥5.07 vs. price of ¥5.37 (5.9% above fair value)
Industry Position: 205.3% above the Drug Manufacturers median (#374 of 1007)
No single metric tells the full story. See the SZSE:000650 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renhe Pharmacy Co Ltd is a China-based company engaged in the production and sale of Chinese and Western medicines, raw materials, and health-related products, including oral solid dosage forms, oral liquid dosage forms, large-volume injections, small-volume injections, external washes, liniments, suppositories, ointments, and other dosage forms of pharmaceuticals and health-related products. The company's main products include: Renhe Kelike, Youkadan series, Fuyanjie series, Da Huo Luo capsules, Shanliang eye drops, Qinghuo capsules, and Zhengwei capsules.
83GF Score
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