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Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692) 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.
Shenzhen Zhaowei Machinery & Electronics Co ROE % Related Terms
Shenzhen Zhaowei Machinery & Electronics 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.
Shenzhen Zhaowei Machinery & Electronics Co ROE % Chart
Shenzhen Zhaowei Machinery & Electronics Co Annual Data
For the Electrical Equipment & Parts subindustry, Shenzhen Zhaowei Machinery & Electronics 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.
Shenzhen Zhaowei Machinery & Electronics Co ROE % vs Industrial Products 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692) has a ROE % of 2.67% 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 Shenzhen Zhaowei Machinery & Electronics Co and its competitors. This is 75% below median its historical median of 10.86. Over the past decade, Shenzhen Zhaowei Machinery & Electronics Co's ROE % has ranged from 5.21 to 70.71. According to the industry distribution chart, Shenzhen Zhaowei Machinery & Electronics Co ranks #1640 out of 3012 companies in the Industrial Products industry, placing it in the top 54.4%.
Is Shenzhen Zhaowei Machinery & Electronics Co's ROE % too high?
Shenzhen Zhaowei Machinery & Electronics Co's current ROE % of 2.67% is 75% below median its 10-year median of 10.86. Over the past 10 years, this metric has ranged from a low of 5.21 to a high of 70.71. The Industrial Products industry median ROE % is 6.19. Shenzhen Zhaowei Machinery & Electronics Co's value of 2.67% is 56.9% below this industry median. Based on the distribution chart, Shenzhen Zhaowei Machinery & Electronics Co ranks #1640 out of 3012 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shenzhen Zhaowei Machinery & Electronics Co has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Zhaowei Machinery & Electronics Co's ROE % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Shenzhen Zhaowei Machinery & Electronics Co ranks #1640 out of 3012 companies for ROE %. This places Shenzhen Zhaowei Machinery & Electronics Co in the lower half of its industry. The industry median ROE % is 6.19. Shenzhen Zhaowei Machinery & Electronics Co's value of 2.67% is 56.9% below this benchmark. Historically, Shenzhen Zhaowei Machinery & Electronics Co's own ROE % has ranged from 5.21 to 70.71 over the past decade. While the company's 10-year median is 10.86 vs. the industry median of 6.19, Shenzhen Zhaowei Machinery & Electronics 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 6.19, based on 3,012 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. Shenzhen Zhaowei Machinery & Electronics Co's current ROE % of 2.67% is 56.9% 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 Shenzhen Zhaowei Machinery & Electronics Co and its competitors. For the Industrial Products industry, the median ROE % is 6.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Zhaowei Machinery & Electronics Co's current ROE % is 2.67%, which is 75% below median its own 10-year median of 10.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Zhaowei Machinery & Electronics Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$55.43, compared to a current price of HK$41.10 — trading 25.9% below its estimated fair value. The current ROE % is 2.67%, which is 75% below median its 10-year median of 10.86 and 56.9% below the Industrial Products industry median of 6.19. Shenzhen Zhaowei Machinery & Electronics Co's overall GF Score™ is 73/100 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 Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692), the current ROE % is 2.67% 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 Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Zhaowei Machinery & Electronics Co stock appears to be undervalued.
The current stock price of HK$41.10 is trading 25.9% below its estimated GF Value™ of HK$55.43.
GuruFocus considers Shenzhen Zhaowei Machinery & Electronics Co to be Modestly Undervalued.
Key valuation signals for HKSE:02692:
ROE %: 2.67% (75% below median its 10-year median of 10.86)
GF Value™: HK$55.43 vs. price of HK$41.10 (25.9% below fair value)
Industry Position: 56.9% below the Industrial Products median (#1640 of 3012)
No single metric tells the full story. See the HKSE:02692 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Zhaowei Machinery & Electronics Co Ltd is engaged in the research and development, production and sales of micro-drive systems, precision injection parts and precision molds. The product portfolio of the group include gearboxes, gear motor, DC motors, Linear actuator motors and others.
73GF Score
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