Shihlin Electric & Engineering (TPE:1503) ROA %: 2.86% (As of Dec. 2025) — 31% Below Median


TPE:1503 Shihlin Electric & Engineering Corp TPE:1503
83 GF Score
Price NT$238.00
GF Value NT$199.50
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Shihlin Electric & Engineering ROA %?

Shihlin Electric & Engineering TPE:1503 83 ROA % is 2.86% as of Dec. 2025, which is 31% below its 10-year median of 4.14. GuruFocus rates TPE:1503 with a GF Score™ of 83/100 and a GF Value™ of NT$199.50 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 3,074 Industrial Products companies, Shihlin Electric & Engineering ranks better than 68.18% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shihlin Electric & Engineering's annualized Net Income for the quarter that ended in Dec. 2025 was NT$1,687 Mil. Shihlin Electric & Engineering's average Total Assets over the quarter that ended in Dec. 2025 was NT$59,050 Mil. Therefore, Shihlin Electric & Engineering's annualized ROA % for the quarter that ended in Dec. 2025 was 2.86%.

The historical rank and industry rank for Shihlin Electric & Engineering's ROA % or its related term are showing as below:

TPE:1503' s ROA % Range Over the Past 10 Years
Min: 3.52   Med: 4.14   Max: 5.58
Current: 5.58

During the past 13 years, Shihlin Electric & Engineering's highest ROA % was 5.58%. The lowest was 3.52%. And the median was 4.14%.

TPE:1503's ROA % is ranked better than
68.18% of 3074 companies
in the Industrial Products industry
Industry Median: 3.02 vs TPE:1503: 5.58

Shihlin Electric & Engineering  (TPE:1503) 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 bank’s 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:

ROA %(Q: Dec. 2025 )
=Net Income/Total Assets
=1687.204/59049.9905
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1687.204 / 38736.444)*(38736.444 / 59049.9905)
=Net Margin %*Asset Turnover
=4.36 %*0.656
=2.86 %

Note: The Net Income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) 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.


Shihlin Electric & Engineering ROA % Related Terms


Shihlin Electric & Engineering ROA % Historical Data

* Premium members only.

The historical data trend for Shihlin Electric & Engineering's ROA % can be seen below:

* 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.

Shihlin Electric & Engineering ROA % Chart

Shihlin Electric & Engineering Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.14 4.25 4.55 5.40 5.50

Shihlin Electric & Engineering Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.99 8.46 6.12 5.03 2.86

TPE:1503 vs VRT, BE: ROA % Comparison

For the Electrical Equipment & Parts subindustry, Shihlin Electric & Engineering'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.


Shihlin Electric & Engineering ROA % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shihlin Electric & Engineering's ROA % distribution charts can be found below:

* The bar in red indicates where Shihlin Electric & Engineering's ROA % falls into.


TPE:1503
83GF Score
Shihlin Electric & Engineering Corp TPE:1503
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
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Shihlin Electric & Engineering ROA % Calculation

Shihlin Electric & Engineering's annualized ROA % for the fiscal year that ended in Dec. 2025 is calculated as:

ROA %=Net Income (A: Dec. 2025 )/( (Total Assets (A: Dec. 2024 )+Total Assets (A: Dec. 2025 ))/ count )
=3267.81/( (58394.459+60537.412)/ 2 )
=3267.81/59465.9355
=5.50 %

Shihlin Electric & Engineering's annualized ROA % for the quarter that ended in Dec. 2025 is calculated as:

ROA %=Net Income (Q: Dec. 2025 )/( (Total Assets (Q: Sep. 2025 )+Total Assets (Q: Dec. 2025 ))/ count )
=1687.204/( (57562.569+60537.412)/ 2 )
=1687.204/59049.9905
=2.86 %

* 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 (Dec. 2025) net income data. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 2.86% mean?
Shihlin Electric & Engineering (TPE:1503) has a ROA % of 2.86% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Shihlin Electric & Engineering and its competitors. This is 31% below median its historical median of 4.14. Over the past decade, Shihlin Electric & Engineering's ROA % has ranged from 3.52 to 5.58. According to the industry distribution chart, Shihlin Electric & Engineering ranks #978 out of 3074 companies in the Industrial Products industry, placing it in the top 31.8%.
Is Shihlin Electric & Engineering's ROA % too high?
Shihlin Electric & Engineering's current ROA % of 2.86% is 31% below median its 10-year median of 4.14. Over the past 10 years, this metric has ranged from a low of 3.52 to a high of 5.58. The Industrial Products industry median ROA % is 3.02. Shihlin Electric & Engineering's value of 2.86% is 5.3% below this industry median. Based on the distribution chart, Shihlin Electric & Engineering ranks #978 out of 3074 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Shihlin Electric & Engineering has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shihlin Electric & Engineering's ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Shihlin Electric & Engineering ranks #978 out of 3074 companies for ROA %. This puts Shihlin Electric & Engineering in the upper half of its industry. The industry median ROA % is 3.02. Shihlin Electric & Engineering's value of 2.86% is 5.3% below this benchmark. Historically, Shihlin Electric & Engineering's own ROA % has ranged from 3.52 to 5.58 over the past decade. While the company's 10-year median is 4.14 vs. the industry median of 3.02, Shihlin Electric & Engineering 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 3.02, based on 3,074 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. Shihlin Electric & Engineering's current ROA % of 2.86% is 5.3% 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 Shihlin Electric & Engineering and its competitors. For the Industrial Products industry, the median ROA % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shihlin Electric & Engineering's current ROA % is 2.86%, which is 31% below median its own 10-year median of 4.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shihlin Electric & Engineering stock overvalued right now?
Based on GuruFocus' analysis, Shihlin Electric & Engineering (TPE:1503) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$199.50, compared to a current price of NT$238.00 — trading 19.3% above its estimated fair value. The current ROA % is 2.86%, which is 31% below median its 10-year median of 4.14 and 5.3% below the Industrial Products industry median of 3.02. Shihlin Electric & Engineering's overall GF Score™ is 83/100 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 Shihlin Electric & Engineering (TPE:1503), the current ROA % is 2.86% as of Dec. 2025. 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 Shihlin Electric & Engineering (TPE:1503) Overvalued in 2026?

Based on GuruFocus' analysis, Shihlin Electric & Engineering stock appears to be overvalued. The current stock price of NT$238.00 is trading 19.3% above its estimated GF Value™ of NT$199.50. GuruFocus considers Shihlin Electric & Engineering to be Modestly Overvalued.

Key valuation signals for TPE:1503:

  • ROA %: 2.86% (31% below median its 10-year median of 4.14)
  • GF Value™: NT$199.50 vs. price of NT$238.00 (19.3% above fair value)
  • GF Score™: 83/100 with 5 warning signs
  • Industry Position: 5.3% below the Industrial Products median (#978 of 3074)

No single metric tells the full story. See the TPE:1503 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shihlin Electric & Engineering Business Description

Address No. 88, Zhongshan North Road, Section 6, 16th Floor, Taipei, TWN, 111
Shihlin Electric & Engineering Corp is engaged in the manufacture of heavy electrical equipment, electrical machinery, electrical automotive equipment and related parts, and the sale and lease of commercial buildings. Its product portfolio comprises low-voltage switches, solar inverters, charging stations, power transformers, capacitors, switchboards, etc. The group has four reportable segments: Electric Distribution, Automobile Parts, Automation Equipment and Parts, and Other. The majority of its revenue is generated by the Electric Distribution segment, which manufactures and sells heavy electric equipment. Geographically, it generates maximum revenue from Taiwan, followed by Mainland China, Vietnam, and other regions.
83GF Score

Get the complete analysis for TPE:1503

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$238.00
Price
NT$199.50
GF Value