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Ningbo Zhongda Leader Intelligent Transmission Co (SZSE:002896) 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.
Ningbo Zhongda Leader Intelligent Transmission Co ROA % Related Terms
Ningbo Zhongda Leader Intelligent Transmission 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.
Ningbo Zhongda Leader Intelligent Transmission Co ROA % Chart
Ningbo Zhongda Leader Intelligent Transmission 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.
Ningbo Zhongda Leader Intelligent Transmission Co ROA % vs Industrial Products 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.
Ningbo Zhongda Leader Intelligent Transmission Co (SZSE:002896) has a ROA % of 2.39% 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 Ningbo Zhongda Leader Intelligent Transmission Co and its competitors. This is 59% below median its historical median of 5.84. Over the past decade, Ningbo Zhongda Leader Intelligent Transmission Co's ROA % has ranged from 3.18 to 9.27. According to the industry distribution chart, Ningbo Zhongda Leader Intelligent Transmission Co ranks #1535 out of 3076 companies in the Industrial Products industry, placing it in the top 49.9%.
Is Ningbo Zhongda Leader Intelligent Transmission Co's ROA % too high?
Ningbo Zhongda Leader Intelligent Transmission Co's current ROA % of 2.39% is 59% below median its 10-year median of 5.84. Over the past 10 years, this metric has ranged from a low of 3.18 to a high of 9.27. The Industrial Products industry median ROA % is 3.17. Ningbo Zhongda Leader Intelligent Transmission Co's value of 2.39% is 24.6% below this industry median. Based on the distribution chart, Ningbo Zhongda Leader Intelligent Transmission Co ranks #1535 out of 3076 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Ningbo Zhongda Leader Intelligent Transmission Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ningbo Zhongda Leader Intelligent Transmission Co's ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Ningbo Zhongda Leader Intelligent Transmission Co ranks #1535 out of 3076 companies for ROA %. This puts Ningbo Zhongda Leader Intelligent Transmission Co in the upper half of its industry. The industry median ROA % is 3.17. Ningbo Zhongda Leader Intelligent Transmission Co's value of 2.39% is 24.6% below this benchmark. Historically, Ningbo Zhongda Leader Intelligent Transmission Co's own ROA % has ranged from 3.18 to 9.27 over the past decade. While the company's 10-year median is 5.84 vs. the industry median of 3.17, Ningbo Zhongda Leader Intelligent Transmission Co has consistently been below 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 Industrial Products company?
The median ROA % among Industrial Products companies is 3.17, based on 3,076 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. Ningbo Zhongda Leader Intelligent Transmission Co's current ROA % of 2.39% is 24.6% below 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 Ningbo Zhongda Leader Intelligent Transmission Co and its competitors. For the Industrial Products industry, the median ROA % is 3.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ningbo Zhongda Leader Intelligent Transmission Co's current ROA % is 2.39%, which is 59% below median its own 10-year median of 5.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ningbo Zhongda Leader Intelligent Transmission Co stock overvalued right now?
Based on GuruFocus' analysis, Ningbo Zhongda Leader Intelligent Transmission Co (SZSE:002896) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥35.35, compared to a current price of ¥77.56 — trading 119.4% above its estimated fair value. The current ROA % is 2.39%, which is 59% below median its 10-year median of 5.84 and 24.6% below the Industrial Products industry median of 3.17. Ningbo Zhongda Leader Intelligent Transmission Co's overall GF Score™ is 73/100 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 Ningbo Zhongda Leader Intelligent Transmission Co (SZSE:002896), the current ROA % is 2.39% 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 Ningbo Zhongda Leader Intelligent Transmission Co (SZSE:002896) Overvalued in 2026?
Based on GuruFocus' analysis, Ningbo Zhongda Leader Intelligent Transmission Co stock appears to be overvalued.
The current stock price of ¥77.56 is trading 119.4% above its estimated GF Value™ of ¥35.35.
GuruFocus considers Ningbo Zhongda Leader Intelligent Transmission Co to be Significantly Overvalued.
Key valuation signals for SZSE:002896:
ROA %: 2.39% (59% below median its 10-year median of 5.84)
GF Value™: ¥35.35 vs. price of ¥77.56 (119.4% above fair value)
Industry Position: 24.6% below the Industrial Products median (#1535 of 3076)
No single metric tells the full story. See the SZSE:002896 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ningbo Zhongda Leader Intelligent Transmission Co Ltd is an electromechanical automation enterprise. The company is engaged in the research, development, manufacture, sales and service of the motor drive, micro-motor and precision reducer. Its product offering includes small AC geared motor, miniature AC geared motor, transmission planetary reducer, hypoid motor and electric forklift. Its products are widely used in industrial robots, intelligent logistics, new energy, work machine and other fields, as well as food, packaging, textile, electronics, medical and other special machinery and equipment.
73GF Score
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