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Henan Tongxin Transmission CoBJSE:920454 83 ROE % is 8.08% as of Jun. 2026, which is 14% below its 10-year median of 9.42. GuruFocus rates BJSE:920454 with a GF Score™ of 83/100 and a GF Value™ of ¥13.69 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,306 Vehicles & Parts companies, Henan Tongxin Transmission Co ranks better than 56.74% on this metric.
Henan Tongxin Transmission Co (BJSE:920454) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Henan Tongxin Transmission Co ROE % Related Terms
Henan Tongxin Transmission 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.
For the Auto Parts subindustry, Henan Tongxin Transmission Co's ROE %, along with its competitors' market caps and ROE % 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.
Henan Tongxin Transmission Co ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Henan Tongxin Transmission Co's ROE % distribution charts can be found below:
* The bar in red indicates where Henan Tongxin Transmission Co's ROE % 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 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Henan Tongxin Transmission Co (BJSE:920454) has a ROE % of 8.08% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Henan Tongxin Transmission Co and its competitors. This is 14% below median its historical median of 9.42. Over the past decade, Henan Tongxin Transmission Co's ROE % has ranged from 6.57 to 19.42. According to the industry distribution chart, Henan Tongxin Transmission Co ranks #565 out of 1306 companies in the Vehicles & Parts industry, placing it in the top 43.3%.
Is Henan Tongxin Transmission Co's ROE % too high?
Henan Tongxin Transmission Co's current ROE % of 8.08% is 14% below median its 10-year median of 9.42. Over the past 10 years, this metric has ranged from a low of 6.57 to a high of 19.42. The Vehicles & Parts industry median ROE % is 6.79. Henan Tongxin Transmission Co's value of 8.08% is 19% above this industry median. Based on the distribution chart, Henan Tongxin Transmission Co ranks #565 out of 1306 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Henan Tongxin Transmission Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Henan Tongxin Transmission Co's ROE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Henan Tongxin Transmission Co ranks #565 out of 1306 companies for ROE %. This puts Henan Tongxin Transmission Co in the upper half of its industry. The industry median ROE % is 6.79. Henan Tongxin Transmission Co's value of 8.08% is 19% above this benchmark. Historically, Henan Tongxin Transmission Co's own ROE % has ranged from 6.57 to 19.42 over the past decade. While the company's 10-year median is 9.42 vs. the industry median of 6.79, Henan Tongxin Transmission 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 ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.79, based on 1,306 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. Henan Tongxin Transmission Co's current ROE % of 8.08% is 19% 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 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 Henan Tongxin Transmission Co and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Tongxin Transmission Co's current ROE % is 8.08%, which is 14% below median its own 10-year median of 9.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Tongxin Transmission Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Tongxin Transmission Co (BJSE:920454) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥13.69, compared to a current price of ¥10.96 — trading 19.9% below its estimated fair value. The current ROE % is 8.08%, which is 14% below median its 10-year median of 9.42 and 19% above the Vehicles & Parts industry median of 6.79. Henan Tongxin Transmission Co's overall GF Score™ is 83/100 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 Henan Tongxin Transmission Co (BJSE:920454), the current ROE % is 8.08% 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 Henan Tongxin Transmission Co (BJSE:920454) Overvalued in 2026?
Based on GuruFocus' analysis, Henan Tongxin Transmission Co stock appears to be undervalued.
The current stock price of ¥10.96 is trading 19.9% below its estimated GF Value™ of ¥13.69.
GuruFocus considers Henan Tongxin Transmission Co to be Modestly Undervalued.
Key valuation signals for BJSE:920454:
ROE %: 8.08% (14% below median its 10-year median of 9.42)
GF Value™: ¥13.69 vs. price of ¥10.96 (19.9% below fair value)
Industry Position: 19% above the Vehicles & Parts median (#565 of 1306)
No single metric tells the full story. See the BJSE:920454 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henan Tongxin Transmission Co Ltd engages in the research and development, production, and sales of all kinds of automobile drive shafts, providing comprehensive one-stop solutions for industry customers. Its product offerings comprise Drive shaft with support (front axle), Telescopic Drive Shaft (Rear Shaft), Coupled drive shafts, Wing drive shafts, and spare parts.
83GF Score
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