FRA:XIN'
s ROE % Range Over the Past 10 Years
Min: 5.03 Med: 10.15 Max: 11.44
Current: 5.03
During the past 13 years, Shandong Xinhua Pharmaceutical Co's highest ROE % was 11.44%. The lowest was 5.03%. And the median was 10.15%.
FRA:XIN's ROE % is ranked worse than 52.94% of 935
companies
in the Drug Manufacturers industry
Industry Median: 6
vs FRA:XIN: 5.03
Shandong Xinhua Pharmaceutical Co (FRA:XIN) 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.
Shandong Xinhua Pharmaceutical Co ROE % Related Terms
Shandong Xinhua Pharmaceutical 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 Drug Manufacturers - Specialty & Generic subindustry, Shandong Xinhua Pharmaceutical 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.
Shandong Xinhua Pharmaceutical Co ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shandong Xinhua Pharmaceutical Co's ROE % distribution charts can be found below:
* The bar in red indicates where Shandong Xinhua Pharmaceutical 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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Shandong Xinhua Pharmaceutical Co (FRA:XIN) has a ROE % of 6.47% 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 Shandong Xinhua Pharmaceutical Co and its competitors. This is 36% below median its historical median of 10.15. Over the past decade, Shandong Xinhua Pharmaceutical Co's ROE % has ranged from 5.03 to 11.44. According to the industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #495 out of 935 companies in the Drug Manufacturers industry, placing it in the top 52.9%.
Is Shandong Xinhua Pharmaceutical Co's ROE % too high?
Shandong Xinhua Pharmaceutical Co's current ROE % of 6.47% is 36% below median its 10-year median of 10.15. Over the past 10 years, this metric has ranged from a low of 5.03 to a high of 11.44. The Drug Manufacturers industry median ROE % is 6.00. Shandong Xinhua Pharmaceutical Co's value of 6.47% is 7.8% above this industry median. Based on the distribution chart, Shandong Xinhua Pharmaceutical Co ranks #495 out of 935 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Shandong Xinhua Pharmaceutical Co has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Xinhua Pharmaceutical Co's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #495 out of 935 companies for ROE %. This places Shandong Xinhua Pharmaceutical Co in the lower half of its industry. The industry median ROE % is 6.00. Shandong Xinhua Pharmaceutical Co's value of 6.47% is 7.8% above this benchmark. Historically, Shandong Xinhua Pharmaceutical Co's own ROE % has ranged from 5.03 to 11.44 over the past decade. While the company's 10-year median is 10.15 vs. the industry median of 6.00, Shandong Xinhua Pharmaceutical 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 Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 6.00, based on 935 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. Shandong Xinhua Pharmaceutical Co's current ROE % of 6.47% is 7.8% 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 Shandong Xinhua Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Xinhua Pharmaceutical Co's current ROE % is 6.47%, which is 36% below median its own 10-year median of 10.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Xinhua Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Xinhua Pharmaceutical Co (FRA:XIN) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.81, compared to a current price of €0.64 — trading 21.6% below its estimated fair value. The current ROE % is 6.47%, which is 36% below median its 10-year median of 10.15 and 7.8% above the Drug Manufacturers industry median of 6.00. Shandong Xinhua Pharmaceutical Co's overall GF Score™ is 53/100 with 5 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 Shandong Xinhua Pharmaceutical Co (FRA:XIN), the current ROE % is 6.47% 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 Shandong Xinhua Pharmaceutical Co (FRA:XIN) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Xinhua Pharmaceutical Co stock appears to be undervalued.
The current stock price of €0.64 is trading 21.6% below its estimated GF Value™ of €0.81.
GuruFocus considers Shandong Xinhua Pharmaceutical Co to be Modestly Undervalued.
Key valuation signals for FRA:XIN:
ROE %: 6.47% (36% below median its 10-year median of 10.15)
GF Value™: €0.81 vs. price of €0.64 (21.6% below fair value)
Industry Position: 7.8% above the Drug Manufacturers median (#495 of 935)
No single metric tells the full story. See the FRA:XIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Xinhua Pharmaceutical Co Business Description
Shandong Xinhua Pharmaceutical Co Ltd is a pharmaceutical products manufacturer based in China. It operates various segments namely Chemical raw materials, Preparations, Pharmaceutical intermediates and other products. The company is mainly engaged in the business of development, manufacture and sale of bulk pharmaceuticals, preparations and chemical products.
53GF Score
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