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Citic Pacific Special Steel Group Co (SZSE:000708) 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.
Citic Pacific Special Steel Group Co ROA % Related Terms
Citic Pacific Special Steel Group 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 Steel subindustry, Citic Pacific Special Steel Group 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.
Citic Pacific Special Steel Group Co ROA % vs Steel 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Citic Pacific Special Steel Group Co (SZSE:000708) has a ROA % of 5.51% 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 Citic Pacific Special Steel Group Co and its competitors. This is 21% below median its historical median of 6.96. Over the past decade, Citic Pacific Special Steel Group Co's ROA % has ranged from 4.51 to 9.59. According to the industry distribution chart, Citic Pacific Special Steel Group Co ranks #152 out of 634 companies in the Steel industry, placing it in the top 24%.
Is Citic Pacific Special Steel Group Co's ROA % too high?
Citic Pacific Special Steel Group Co's current ROA % of 5.51% is 21% below median its 10-year median of 6.96. Over the past 10 years, this metric has ranged from a low of 4.51 to a high of 9.59. The Steel industry median ROA % is 2.01. Citic Pacific Special Steel Group Co's value of 5.51% is 174.1% above this industry median. Based on the distribution chart, Citic Pacific Special Steel Group Co ranks #152 out of 634 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Citic Pacific Special Steel Group Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Citic Pacific Special Steel Group Co's ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, Citic Pacific Special Steel Group Co ranks #152 out of 634 companies for ROA %. This places Citic Pacific Special Steel Group Co in the top 24% of its industry — outperforming the majority of peers. The industry median ROA % is 2.01. Citic Pacific Special Steel Group Co's value of 5.51% is 174.1% above this benchmark. Historically, Citic Pacific Special Steel Group Co's own ROA % has ranged from 4.51 to 9.59 over the past decade. While the company's 10-year median is 6.96 vs. the industry median of 2.01, Citic Pacific Special Steel Group 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 Steel company?
The median ROA % among Steel companies is 2.01, based on 634 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. Citic Pacific Special Steel Group Co's current ROA % of 5.51% is 174.1% 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 Citic Pacific Special Steel Group Co and its competitors. For the Steel industry, the median ROA % is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Citic Pacific Special Steel Group Co's current ROA % is 5.51%, which is 21% below median its own 10-year median of 6.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Citic Pacific Special Steel Group Co stock overvalued right now?
Based on GuruFocus' analysis, Citic Pacific Special Steel Group Co (SZSE:000708) is currently considered Fairly Valued. The stock's GF Value™ is ¥13.80, compared to a current price of ¥13.79 — trading 0.1% below its estimated fair value. The current ROA % is 5.51%, which is 21% below median its 10-year median of 6.96 and 174.1% above the Steel industry median of 2.01. Citic Pacific Special Steel Group Co's overall GF Score™ is 85/100 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 Citic Pacific Special Steel Group Co (SZSE:000708), the current ROA % is 5.51% 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 Citic Pacific Special Steel Group Co (SZSE:000708) Overvalued in 2026?
Based on GuruFocus' analysis, Citic Pacific Special Steel Group Co stock appears to be undervalued.
The current stock price of ¥13.79 is trading 0.1% below its estimated GF Value™ of ¥13.80.
GuruFocus considers Citic Pacific Special Steel Group Co to be Fairly Valued.
Key valuation signals for SZSE:000708:
ROA %: 5.51% (21% below median its 10-year median of 6.96)
GF Value™: ¥13.80 vs. price of ¥13.79 (0.1% below fair value)
Industry Position: 174.1% above the Steel median (#152 of 634)
No single metric tells the full story. See the SZSE:000708 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Citic Pacific Special Steel Group Co Ltd manufactures special steel, high-grade bearing steel, gear steel, spring steel, alloy tube billets, high-quality thick to medium seamless steel tubes, high-alloy steel, free-cutting and non-quenched/ tempered steel. The company is also engaged in scrap steel recycling, cargo loading and unloading within the port area, lighterage, warehousing, and others.
85GF Score
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