Zhejiang Zheneng Electric Power CoSHSE:600023 +1.87%75 ROE % is 4.93% as of Mar. 2026, which is 40% below its 10-year median of 8.23. GuruFocus rates SHSE:600023 with a GF Score™ of 75/100 and a GF Value™ of ¥4.84 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 433 Utilities - Independent Power Producers companies, Zhejiang Zheneng Electric Power Co ranks better than 73.21% on this metric.
Zhejiang Zheneng Electric Power Co (SHSE:600023) 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.
Zhejiang Zheneng Electric Power Co ROE % Related Terms
Zhejiang Zheneng Electric Power 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 Utilities - Independent Power Producers subindustry, Zhejiang Zheneng Electric Power 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.
Zhejiang Zheneng Electric Power Co ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Zhejiang Zheneng Electric Power Co's ROE % distribution charts can be found below:
* The bar in red indicates where Zhejiang Zheneng Electric Power 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.
Zhejiang Zheneng Electric Power Co (SHSE:600023) has a ROE % of 4.93% 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 Zhejiang Zheneng Electric Power Co and its competitors. This is 40% below median its historical median of 8.23. According to the industry distribution chart, Zhejiang Zheneng Electric Power Co ranks #116 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 26.8%.
Is Zhejiang Zheneng Electric Power Co's ROE % too high?
Zhejiang Zheneng Electric Power Co's current ROE % of 4.93% is 40% below median its 10-year median of 8.23. The Utilities - Independent Power Producers industry median ROE % is 3.79. Zhejiang Zheneng Electric Power Co's value of 4.93% is 30.1% above this industry median. Based on the distribution chart, Zhejiang Zheneng Electric Power Co ranks #116 out of 433 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Zhejiang Zheneng Electric Power Co has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Zheneng Electric Power Co's ROE % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Zhejiang Zheneng Electric Power Co ranks #116 out of 433 companies for ROE %. This puts Zhejiang Zheneng Electric Power Co in the upper half of its industry. The industry median ROE % is 3.79. Zhejiang Zheneng Electric Power Co's value of 4.93% is 30.1% above this benchmark. While the company's 10-year median is 8.23 vs. the industry median of 3.79, Zhejiang Zheneng Electric Power 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 an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.79, based on 433 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. Zhejiang Zheneng Electric Power Co's current ROE % of 4.93% is 30.1% 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 Zhejiang Zheneng Electric Power Co and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Zheneng Electric Power Co's current ROE % is 4.93%, which is 40% below median its own 10-year median of 8.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Zheneng Electric Power Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Zheneng Electric Power Co (SHSE:600023) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥4.84, compared to a current price of ¥5.46 — trading 12.8% above its estimated fair value. The current ROE % is 4.93%, which is 40% below median its 10-year median of 8.23 and 30.1% above the Utilities - Independent Power Producers industry median of 3.79. Zhejiang Zheneng Electric Power Co's overall GF Score™ is 75/100 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 Zhejiang Zheneng Electric Power Co (SHSE:600023), the current ROE % is 4.93% 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 Zhejiang Zheneng Electric Power Co (SHSE:600023) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Zheneng Electric Power Co stock appears to be overvalued.
The current stock price of ¥5.46 is trading 12.8% above its estimated GF Value™ of ¥4.84.
GuruFocus considers Zhejiang Zheneng Electric Power Co to be Modestly Overvalued.
Key valuation signals for SHSE:600023:
ROE %: 4.93% (40% below median its 10-year median of 8.23)
GF Value™: ¥4.84 vs. price of ¥5.46 (12.8% above fair value)
Industry Position: 30.1% above the Utilities - Independent Power Producers median (#116 of 433)
No single metric tells the full story. See the SHSE:600023 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Zheneng Electric Power Co Business Description
AddressNo. 36, Zijinghua Road, 10th Floor, Building A, Zhejiang Energy Science and Technology Innovation Center, Xihu District, Zhejiang Province, Hangzhou, CHN, 310013
Zhejiang Zheneng Electric Power Co Ltd is engaged in the thermal power generation business in China. It also provides thermal products, as well as invests in nuclear power.
75GF Score
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