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BJSE:920122's ROE % is ranked worse than 55.21% of 1056
companies
in the Business Services industry
Industry Median: 8.15
vs BJSE:920122: 6.92
Chinatesta Textile Testing and Certification Services Co (BJSE:920122) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Chinatesta Textile Testing and Certification Services Co ROE % Related Terms
Chinatesta Textile Testing and Certification Services Co ROE % 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.
Chinatesta Textile Testing and Certification Services Co ROE % Chart
Chinatesta Textile Testing and Certification Services 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.
Chinatesta Textile Testing and Certification Services Co ROE % vs Business Services 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Chinatesta Textile Testing and Certification Services Co (BJSE:920122) has a ROE % of 1.22% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Chinatesta Textile Testing and Certification Services Co and its competitors. This is 92% below median its historical median of 14.62. Over the past decade, Chinatesta Textile Testing and Certification Services Co's ROE % has ranged from 6.32 to 23.21. According to the industry distribution chart, Chinatesta Textile Testing and Certification Services Co ranks #583 out of 1056 companies in the Business Services industry, placing it in the top 55.2%.
Is Chinatesta Textile Testing and Certification Services Co's ROE % too high?
Chinatesta Textile Testing and Certification Services Co's current ROE % of 1.22% is 92% below median its 10-year median of 14.62. Over the past 10 years, this metric has ranged from a low of 6.32 to a high of 23.21. The Business Services industry median ROE % is 8.15. Chinatesta Textile Testing and Certification Services Co's value of 1.22% is 85% below this industry median. Based on the distribution chart, Chinatesta Textile Testing and Certification Services Co ranks #583 out of 1056 companies in the Business Services industry, which is below the industry midpoint. Overall, Chinatesta Textile Testing and Certification Services Co has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chinatesta Textile Testing and Certification Services Co's ROE % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Chinatesta Textile Testing and Certification Services Co ranks #583 out of 1056 companies for ROE %. This places Chinatesta Textile Testing and Certification Services Co in the lower half of its industry. The industry median ROE % is 8.15. Chinatesta Textile Testing and Certification Services Co's value of 1.22% is 85% below this benchmark. Historically, Chinatesta Textile Testing and Certification Services Co's own ROE % has ranged from 6.32 to 23.21 over the past decade. While the company's 10-year median is 14.62 vs. the industry median of 8.15, Chinatesta Textile Testing and Certification Services 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 ROE % for a Business Services company?
The median ROE % among Business Services companies is 8.15, based on 1,056 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chinatesta Textile Testing and Certification Services Co's current ROE % of 1.22% is 85% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Chinatesta Textile Testing and Certification Services Co and its competitors. For the Business Services industry, the median ROE % is 8.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinatesta Textile Testing and Certification Services Co's current ROE % is 1.22%, which is 92% below median its own 10-year median of 14.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinatesta Textile Testing and Certification Services Co stock overvalued right now?
Based on GuruFocus' analysis, Chinatesta Textile Testing and Certification Services Co (BJSE:920122) is currently considered Possible Value Trap. The stock's GF Value™ is ¥39.68, compared to a current price of ¥21.51 — trading 45.8% below its estimated fair value. The current ROE % is 1.22%, which is 92% below median its 10-year median of 14.62 and 85% below the Business Services industry median of 8.15. Chinatesta Textile Testing and Certification Services Co's overall GF Score™ is 63/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Chinatesta Textile Testing and Certification Services Co (BJSE:920122), the current ROE % is 1.22% 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 Chinatesta Textile Testing and Certification Services Co (BJSE:920122) Overvalued in 2026?
Based on GuruFocus' analysis, Chinatesta Textile Testing and Certification Services Co stock appears to be undervalued.
The current stock price of ¥21.51 is trading 45.8% below its estimated GF Value™ of ¥39.68.
GuruFocus considers Chinatesta Textile Testing and Certification Services Co to be Possible Value Trap.
Key valuation signals for BJSE:920122:
ROE %: 1.22% (92% below median its 10-year median of 14.62)
GF Value™: ¥39.68 vs. price of ¥21.51 (45.8% below fair value)
Industry Position: 85% below the Business Services median (#583 of 1056)
No single metric tells the full story. See the BJSE:920122 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinatesta Textile Testing and Certification Services Co Business Description
Chinatesta Textile Testing and Certification Services Co Ltd is engaged in the research and revision of textile standards, inspection, testing, and certification of textile and light industrial products, research and development, management of test consumables, and calibration of textile instruments.
63GF Score
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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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