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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Chengda Pharmaceuticals Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥28.0 Mil.
Chengda Pharmaceuticals Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥2,341.0 Mil. Therefore, Chengda Pharmaceuticals Co's annualized ROA % for the quarter that ended in Mar. 2026 was 1.20%.
The historical rank and industry rank for Chengda Pharmaceuticals Co's ROA % or its related term are showing as below:
SZSE:301201'
s ROA % Range Over the Past 10 Years
Min: -1.15 Med: 5.45 Max: 22.42
Current: -0.15
During the past 12 years, Chengda Pharmaceuticals Co's highest ROA % was 22.42%. The lowest was -1.15%. And the median was 5.45%.
SZSE:301201's ROA % is ranked worse than 63.83% of 1009
companies
in the Drug Manufacturers industry
Industry Median: 2.74
vs SZSE:301201: -0.15
Chengda Pharmaceuticals Co (SZSE:301201) 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.
* 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, Chengda Pharmaceuticals 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.
Chengda Pharmaceuticals Co ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Chengda Pharmaceuticals Co's ROA % distribution charts can be found below:
* The bar in red indicates where Chengda Pharmaceuticals 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Chengda Pharmaceuticals Co (SZSE:301201) has a ROA % of 1.20% 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 Chengda Pharmaceuticals Co and its competitors. This is 78% below median its historical median of 5.45. According to the industry distribution chart, Chengda Pharmaceuticals Co ranks #644 out of 1009 companies in the Drug Manufacturers industry, placing it in the top 63.8%.
Is Chengda Pharmaceuticals Co's ROA % too high?
Chengda Pharmaceuticals Co's current ROA % of 1.20% is 78% below median its 10-year median of 5.45. The Drug Manufacturers industry median ROA % is 2.74. Chengda Pharmaceuticals Co's value of 1.20% is 56.2% below this industry median. Based on the distribution chart, Chengda Pharmaceuticals Co ranks #644 out of 1009 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Chengda Pharmaceuticals Co has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chengda Pharmaceuticals Co's ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Chengda Pharmaceuticals Co ranks #644 out of 1009 companies for ROA %. This places Chengda Pharmaceuticals Co in the lower half of its industry. The industry median ROA % is 2.74. Chengda Pharmaceuticals Co's value of 1.20% is 56.2% below this benchmark. While the company's 10-year median is 5.45 vs. the industry median of 2.74, Chengda Pharmaceuticals 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 a Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.74, based on 1,009 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. Chengda Pharmaceuticals Co's current ROA % of 1.20% is 56.2% 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 Chengda Pharmaceuticals Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chengda Pharmaceuticals Co's current ROA % is 1.20%, which is 78% below median its own 10-year median of 5.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengda Pharmaceuticals Co stock overvalued right now?
Based on GuruFocus' analysis, Chengda Pharmaceuticals Co (SZSE:301201) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥30.45, compared to a current price of ¥37.94 — trading 24.6% above its estimated fair value. The current ROA % is 1.20%, which is 78% below median its 10-year median of 5.45 and 56.2% below the Drug Manufacturers industry median of 2.74. Chengda Pharmaceuticals Co's overall GF Score™ is 75/100 with 4 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 Chengda Pharmaceuticals Co (SZSE:301201), the current ROA % is 1.20% 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 Chengda Pharmaceuticals Co (SZSE:301201) Overvalued in 2026?
Based on GuruFocus' analysis, Chengda Pharmaceuticals Co stock appears to be overvalued.
The current stock price of ¥37.94 is trading 24.6% above its estimated GF Value™ of ¥30.45.
GuruFocus considers Chengda Pharmaceuticals Co to be Modestly Overvalued.
Key valuation signals for SZSE:301201:
ROA %: 1.20% (78% below median its 10-year median of 5.45)
GF Value™: ¥30.45 vs. price of ¥37.94 (24.6% above fair value)
Industry Position: 56.2% below the Drug Manufacturers median (#644 of 1009)
No single metric tells the full story. See the SZSE:301201 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chengda Pharmaceuticals Co Ltd is engaged in the research and development, production and sales of L-carnitine series products. The company mainly produces raw materials, food additives, feed additives, antibiotics, anti-cancer, anti-virus and other series of pharmaceutical intermediates. The products are sold to more than 30 countries and regions.
75GF Score
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