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China Zhenhua (Group) Science & Technology Co (SZSE:000733) 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.
China Zhenhua (Group) Science & Technology Co ROA % Related Terms
China Zhenhua (Group) Science & Technology 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.
China Zhenhua (Group) Science & Technology Co ROA % Chart
China Zhenhua (Group) Science & Technology 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.
China Zhenhua (Group) Science & Technology 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.
China Zhenhua (Group) Science & Technology Co (SZSE:000733) has a ROA % of 4.88% 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 China Zhenhua (Group) Science & Technology Co and its competitors. This is 10% below median its historical median of 5.44. Over the past decade, China Zhenhua (Group) Science & Technology Co's ROA % has ranged from 2.37 to 19.29. According to the industry distribution chart, China Zhenhua (Group) Science & Technology Co ranks #871 out of 2491 companies in the Hardware industry, placing it in the top 35%.
Is China Zhenhua (Group) Science & Technology Co's ROA % too high?
China Zhenhua (Group) Science & Technology Co's current ROA % of 4.88% is 10% below median its 10-year median of 5.44. Over the past 10 years, this metric has ranged from a low of 2.37 to a high of 19.29. The Hardware industry median ROA % is 2.77. China Zhenhua (Group) Science & Technology Co's value of 4.88% is 76.2% above this industry median. Based on the distribution chart, China Zhenhua (Group) Science & Technology Co ranks #871 out of 2491 companies in the Hardware industry, which is above the industry midpoint. Overall, China Zhenhua (Group) Science & Technology Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Zhenhua (Group) Science & Technology Co's ROA % compare to APH and GLW?
According to the Hardware industry distribution chart, China Zhenhua (Group) Science & Technology Co ranks #871 out of 2491 companies for ROA %. This puts China Zhenhua (Group) Science & Technology Co in the upper half of its industry. The industry median ROA % is 2.77. China Zhenhua (Group) Science & Technology Co's value of 4.88% is 76.2% above this benchmark. Historically, China Zhenhua (Group) Science & Technology Co's own ROA % has ranged from 2.37 to 19.29 over the past decade. While the company's 10-year median is 5.44 vs. the industry median of 2.77, China Zhenhua (Group) Science & Technology 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 2.77, based on 2,491 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. China Zhenhua (Group) Science & Technology Co's current ROA % of 4.88% is 76.2% 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 China Zhenhua (Group) Science & Technology Co and its competitors. For the Hardware industry, the median ROA % is 2.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Zhenhua (Group) Science & Technology Co's current ROA % is 4.88%, which is 10% below median its own 10-year median of 5.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Zhenhua (Group) Science & Technology Co stock overvalued right now?
Based on GuruFocus' analysis, China Zhenhua (Group) Science & Technology Co (SZSE:000733) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥49.80, compared to a current price of ¥40.66 — trading 18.4% below its estimated fair value. The current ROA % is 4.88%, which is 10% below median its 10-year median of 5.44 and 76.2% above the Hardware industry median of 2.77. China Zhenhua (Group) Science & Technology Co's overall GF Score™ is 78/100 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 China Zhenhua (Group) Science & Technology Co (SZSE:000733), the current ROA % is 4.88% 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 China Zhenhua (Group) Science & Technology Co (SZSE:000733) Overvalued in 2026?
Based on GuruFocus' analysis, China Zhenhua (Group) Science & Technology Co stock appears to be undervalued.
The current stock price of ¥40.66 is trading 18.4% below its estimated GF Value™ of ¥49.80.
GuruFocus considers China Zhenhua (Group) Science & Technology Co to be Modestly Undervalued.
Key valuation signals for SZSE:000733:
ROA %: 4.88% (10% below median its 10-year median of 5.44)
GF Value™: ¥49.80 vs. price of ¥40.66 (18.4% below fair value)
Industry Position: 76.2% above the Hardware median (#871 of 2491)
No single metric tells the full story. See the SZSE:000733 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Zhenhua (Group) Science & Technology Co Ltd operates in the electronic components business. Its main business involves basic components, hybrid integrated circuits, electronic functional materials and other categories. Its main products include resistors, capacitors, inductors, fuses, piezoelectric ceramic components, LTCC filters, duplexers, dielectric resonators, power dividers, motor drivers, power managers, diodes, transistors, IGBT devices, SIC devices, transformers, vacuum interrupters, relays, contactors, switches, circuit breakers, connectors, lithium-ion batteries, LTCC dielectric materials, MLCC dielectric materials, ceramic ferrite materials, piezoelectric ceramic materials, electronic pastes, etc.
78GF Score
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