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Jiangsu Innovative Ecological New Materials (HKSE:02116) 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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
Jiangsu Innovative Ecological New Materials ROE % Related Terms
Jiangsu Innovative Ecological New Materials 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.
Jiangsu Innovative Ecological New Materials ROE % Chart
Jiangsu Innovative Ecological New Materials 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.
Jiangsu Innovative Ecological New Materials ROE % vs Chemicals 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 two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Jiangsu Innovative Ecological New Materials (HKSE:02116) has a ROE % of 4.93% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Jiangsu Innovative Ecological New Materials and its competitors. This is 39% below median its historical median of 8.09. Over the past decade, Jiangsu Innovative Ecological New Materials' ROE % has ranged from 3.71 to 30.56. According to the industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #698 out of 1588 companies in the Chemicals industry, placing it in the top 44%.
Is Jiangsu Innovative Ecological New Materials' ROE % too high?
Jiangsu Innovative Ecological New Materials' current ROE % of 4.93% is 39% below median its 10-year median of 8.09. Over the past 10 years, this metric has ranged from a low of 3.71 to a high of 30.56. The Chemicals industry median ROE % is 5.55. Jiangsu Innovative Ecological New Materials' value of 4.93% is 11.2% below this industry median. Based on the distribution chart, Jiangsu Innovative Ecological New Materials ranks #698 out of 1588 companies in the Chemicals industry, which is above the industry midpoint. Overall, Jiangsu Innovative Ecological New Materials has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Innovative Ecological New Materials' ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #698 out of 1588 companies for ROE %. This puts Jiangsu Innovative Ecological New Materials in the upper half of its industry. The industry median ROE % is 5.55. Jiangsu Innovative Ecological New Materials' value of 4.93% is 11.2% below this benchmark. Historically, Jiangsu Innovative Ecological New Materials' own ROE % has ranged from 3.71 to 30.56 over the past decade. While the company's 10-year median is 8.09 vs. the industry median of 5.55, Jiangsu Innovative Ecological New Materials 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 Chemicals company?
The median ROE % among Chemicals companies is 5.55, based on 1,588 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. Jiangsu Innovative Ecological New Materials's current ROE % of 4.93% is 11.2% 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 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 Jiangsu Innovative Ecological New Materials and its competitors. For the Chemicals industry, the median ROE % is 5.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Innovative Ecological New Materials's current ROE % is 4.93%, which is 39% below median its own 10-year median of 8.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Innovative Ecological New Materials stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials (HKSE:02116) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.43, compared to a current price of HK$0.71 — trading 65.1% above its estimated fair value. The current ROE % is 4.93%, which is 39% below median its 10-year median of 8.09 and 11.2% below the Chemicals industry median of 5.55. Jiangsu Innovative Ecological New Materials' overall GF Score™ is 61/100 with 3 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 Jiangsu Innovative Ecological New Materials (HKSE:02116), the current ROE % is 4.93% 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 Jiangsu Innovative Ecological New Materials (HKSE:02116) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials stock appears to be overvalued.
The current stock price of HK$0.71 is trading 65.1% above its estimated GF Value™ of HK$0.43.
GuruFocus considers Jiangsu Innovative Ecological New Materials to be Significantly Overvalued.
Key valuation signals for HKSE:02116:
ROE %: 4.93% (39% below median its 10-year median of 8.09)
GF Value™: HK$0.43 vs. price of HK$0.71 (65.1% above fair value)
Industry Position: 11.2% below the Chemicals median (#698 of 1588)
No single metric tells the full story. See the HKSE:02116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Innovative Ecological New Materials Ltd develops, manufactures, and markets oil refining agents. The firm produces refining additives, oil additives, and other products. It offers and generates revenue from oil refining agents and fuel additives with desulfurizing agents, lubricity improvers, and metal passivation. The majority of the firm's revenue is generated from the sales of oil refining agents from Mainland China. The company operates in a single segment, which is the sale of oil refining agents and fuel additives.
61GF Score
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