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Jiangsu Zhengdan Chemical Industry Co (SZSE:300641) 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.
Jiangsu Zhengdan Chemical Industry Co ROA % Related Terms
Jiangsu Zhengdan Chemical Industry 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 Chemicals subindustry, Jiangsu Zhengdan Chemical Industry 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.
Jiangsu Zhengdan Chemical Industry Co ROA % vs Chemicals 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.
Jiangsu Zhengdan Chemical Industry Co (SZSE:300641) has a ROA % of 20.27% 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 Jiangsu Zhengdan Chemical Industry Co and its competitors. This is 344% above median its historical median of 4.57. Over the past decade, Jiangsu Zhengdan Chemical Industry Co's ROA % has ranged from 0.45 to 45.04. According to the industry distribution chart, Jiangsu Zhengdan Chemical Industry Co ranks #255 out of 1625 companies in the Chemicals industry, placing it in the top 15.7%.
Is Jiangsu Zhengdan Chemical Industry Co's ROA % too high?
Jiangsu Zhengdan Chemical Industry Co's current ROA % of 20.27% is 344% above median its 10-year median of 4.57. Over the past 10 years, this metric has ranged from a low of 0.45 to a high of 45.04. The Chemicals industry median ROA % is 3.45. Jiangsu Zhengdan Chemical Industry Co's value of 20.27% is 487.5% above this industry median. Based on the distribution chart, Jiangsu Zhengdan Chemical Industry Co ranks #255 out of 1625 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Jiangsu Zhengdan Chemical Industry Co has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Zhengdan Chemical Industry Co's ROA % compare to DOW?
According to the Chemicals industry distribution chart, Jiangsu Zhengdan Chemical Industry Co ranks #255 out of 1625 companies for ROA %. This places Jiangsu Zhengdan Chemical Industry Co in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 3.45. Jiangsu Zhengdan Chemical Industry Co's value of 20.27% is 487.5% above this benchmark. Historically, Jiangsu Zhengdan Chemical Industry Co's own ROA % has ranged from 0.45 to 45.04 over the past decade. While the company's 10-year median is 4.57 vs. the industry median of 3.45, Jiangsu Zhengdan Chemical Industry 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 Chemicals company?
The median ROA % among Chemicals companies is 3.45, based on 1,625 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. Jiangsu Zhengdan Chemical Industry Co's current ROA % of 20.27% is 487.5% 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 Jiangsu Zhengdan Chemical Industry Co and its competitors. For the Chemicals industry, the median ROA % is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Zhengdan Chemical Industry Co's current ROA % is 20.27%, which is 344% above median its own 10-year median of 4.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Zhengdan Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Zhengdan Chemical Industry Co (SZSE:300641) is currently considered Fairly Valued. The stock's GF Value™ is ¥13.73, compared to a current price of ¥13.33 — trading 2.9% below its estimated fair value. The current ROA % is 20.27%, which is 344% above median its 10-year median of 4.57 and 487.5% above the Chemicals industry median of 3.45. Jiangsu Zhengdan Chemical Industry Co's overall GF Score™ is 80/100 with 2 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 Jiangsu Zhengdan Chemical Industry Co (SZSE:300641), the current ROA % is 20.27% 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 Jiangsu Zhengdan Chemical Industry Co (SZSE:300641) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Zhengdan Chemical Industry Co stock appears to be undervalued.
The current stock price of ¥13.33 is trading 2.9% below its estimated GF Value™ of ¥13.73.
GuruFocus considers Jiangsu Zhengdan Chemical Industry Co to be Fairly Valued.
Key valuation signals for SZSE:300641:
ROA %: 20.27% (344% above median its 10-year median of 4.57)
GF Value™: ¥13.73 vs. price of ¥13.33 (2.9% below fair value)
Industry Position: 487.5% above the Chemicals median (#255 of 1625)
No single metric tells the full story. See the SZSE:300641 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Zhengdan Chemical Industry Co Ltd is a Chinese company operating in the field of specialty fine chemicals. It is engaged in research and development, manufacturing and sales of new materials and fine chemicals. The company's product portfolio includes Vinyl toluene, High-flash aromatic naphthas, Trimellitic anhydride, and Trimethylbenzene, among others.
80GF Score
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