China Meheco Group CoSHSE:600056 -2.39%63 ROE % is 6.11% as of Mar. 2026, which is 41% below its 10-year median of 10.30. GuruFocus rates SHSE:600056 with a GF Score™ of 63/100 and a GF Value™ of ¥10.49 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 113 Medical Distribution companies, China Meheco Group Co ranks worse than 61.95% on this metric.
The historical rank and industry rank for China Meheco Group Co's ROE % or its related term are showing as below:
SHSE:600056'
s ROE % Range Over the Past 10 Years
Min: 3.97 Med: 10.3 Max: 18.91
Current: 4.06
During the past 13 years, China Meheco Group Co's highest ROE % was 18.91%. The lowest was 3.97%. And the median was 10.30%.
SHSE:600056's ROE % is ranked worse than 61.95% of 113
companies
in the Medical Distribution industry
Industry Median: 7.1
vs SHSE:600056: 4.06
China Meheco Group Co (SHSE:600056) 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.
* 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 Medical Distribution subindustry, China Meheco Group 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.
China Meheco Group Co ROE % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China Meheco Group Co's ROE % distribution charts can be found below:
* The bar in red indicates where China Meheco Group 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.
China Meheco Group Co (SHSE:600056) has a ROE % of 6.11% 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 China Meheco Group Co and its competitors. This is 41% below median its historical median of 10.30. Over the past decade, China Meheco Group Co's ROE % has ranged from 3.97 to 18.91. According to the industry distribution chart, China Meheco Group Co ranks #70 out of 113 companies in the Medical Distribution industry, placing it in the top 61.9%.
Is China Meheco Group Co's ROE % too high?
China Meheco Group Co's current ROE % of 6.11% is 41% below median its 10-year median of 10.30. Over the past 10 years, this metric has ranged from a low of 3.97 to a high of 18.91. The Medical Distribution industry median ROE % is 7.10. China Meheco Group Co's value of 6.11% is 13.9% below this industry median. Based on the distribution chart, China Meheco Group Co ranks #70 out of 113 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, China Meheco Group Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Meheco Group Co's ROE % compare to MCK and COR?
According to the Medical Distribution industry distribution chart, China Meheco Group Co ranks #70 out of 113 companies for ROE %. This places China Meheco Group Co in the lower half of its industry. The industry median ROE % is 7.10. China Meheco Group Co's value of 6.11% is 13.9% below this benchmark. Historically, China Meheco Group Co's own ROE % has ranged from 3.97 to 18.91 over the past decade. While the company's 10-year median is 10.30 vs. the industry median of 7.10, China Meheco Group 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 a Medical Distribution company?
The median ROE % among Medical Distribution companies is 7.10, based on 113 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. China Meheco Group Co's current ROE % of 6.11% is 13.9% 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 China Meheco Group Co and its competitors. For the Medical Distribution industry, the median ROE % is 7.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Meheco Group Co's current ROE % is 6.11%, which is 41% below median its own 10-year median of 10.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Meheco Group Co stock overvalued right now?
Based on GuruFocus' analysis, China Meheco Group Co (SHSE:600056) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.49, compared to a current price of ¥8.58 — trading 18.2% below its estimated fair value. The current ROE % is 6.11%, which is 41% below median its 10-year median of 10.30 and 13.9% below the Medical Distribution industry median of 7.10. China Meheco Group Co's overall GF Score™ is 63/100 with 6 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 China Meheco Group Co (SHSE:600056), the current ROE % is 6.11% 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 China Meheco Group Co (SHSE:600056) Overvalued in 2026?
Based on GuruFocus' analysis, China Meheco Group Co stock appears to be undervalued.
The current stock price of ¥8.58 is trading 18.2% below its estimated GF Value™ of ¥10.49.
GuruFocus considers China Meheco Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:600056:
ROE %: 6.11% (41% below median its 10-year median of 10.30)
GF Value™: ¥10.49 vs. price of ¥8.58 (18.2% below fair value)
Industry Position: 13.9% below the Medical Distribution median (#70 of 113)
No single metric tells the full story. See the SHSE:600056 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Meheco Group Co Ltd is engaged in the distribution and trading of botanical medicines, medical instruments, and pharmaceuticals. It offers botanic medicines and herbal products, as well as exports of natural medicines, including herbs, spices, plant extracts, bee products, and Chinese traditional medicines. The company's business scope covers the whole industry chain, from research and development, cultivation and processing, manufacturing, distribution, and logistics to international trading, academic promotion, and technical service. The corporation provides trading services for customers in the pharmaceutical and chemical field, covering APIs, preparations, biologicals, blood products, and others.
63GF Score
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