NARI Technology CoSHSE:600406 +1.18%97 ROE % is 5.44% as of Mar. 2026, which is 66% below its 10-year median of 16.02. GuruFocus rates SHSE:600406 with a GF Score™ of 97/100 and a GF Value™ of ¥29.97 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,998 Industrial Products companies, NARI Technology Co ranks better than 84.89% on this metric.
The historical rank and industry rank for NARI Technology Co's ROE % or its related term are showing as below:
SHSE:600406'
s ROE % Range Over the Past 10 Years
Min: 14.9 Med: 16.02 Max: 23.78
Current: 16.37
During the past 13 years, NARI Technology Co's highest ROE % was 23.78%. The lowest was 14.90%. And the median was 16.02%.
SHSE:600406's ROE % is ranked better than 84.89% of 2998
companies
in the Industrial Products industry
Industry Median: 5.855
vs SHSE:600406: 16.37
NARI Technology Co (SHSE:600406) 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.
NARI Technology Co ROE % Related Terms
NARI Technology Co ROE % Historical Data
* Premium members only.
The historical data trend for NARI Technology Co's ROE % can be seen below:
* 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 Specialty Industrial Machinery subindustry, NARI Technology 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.
NARI Technology Co ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, NARI Technology Co's ROE % distribution charts can be found below:
* The bar in red indicates where NARI Technology 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.
NARI Technology Co (SHSE:600406) has a ROE % of 5.44% 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 NARI Technology Co and its competitors. This is 66% below median its historical median of 16.02. Over the past decade, NARI Technology Co's ROE % has ranged from 14.90 to 23.78. According to the industry distribution chart, NARI Technology Co ranks #453 out of 2998 companies in the Industrial Products industry, placing it in the top 15.1%.
Is NARI Technology Co's ROE % too high?
NARI Technology Co's current ROE % of 5.44% is 66% below median its 10-year median of 16.02. Over the past 10 years, this metric has ranged from a low of 14.90 to a high of 23.78. The Industrial Products industry median ROE % is 5.86. NARI Technology Co's value of 5.44% is 7.1% below this industry median. Based on the distribution chart, NARI Technology Co ranks #453 out of 2998 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, NARI Technology Co has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NARI Technology Co's ROE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, NARI Technology Co ranks #453 out of 2998 companies for ROE %. This places NARI Technology Co in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 5.86. NARI Technology Co's value of 5.44% is 7.1% below this benchmark. Historically, NARI Technology Co's own ROE % has ranged from 14.90 to 23.78 over the past decade. While the company's 10-year median is 16.02 vs. the industry median of 5.86, NARI Technology 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 5.86, based on 2,998 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. NARI Technology Co's current ROE % of 5.44% is 7.1% 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 NARI Technology Co and its competitors. For the Industrial Products industry, the median ROE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NARI Technology Co's current ROE % is 5.44%, which is 66% below median its own 10-year median of 16.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NARI Technology Co stock overvalued right now?
Based on GuruFocus' analysis, NARI Technology Co (SHSE:600406) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥29.97, compared to a current price of ¥23.16 — trading 22.7% below its estimated fair value. The current ROE % is 5.44%, which is 66% below median its 10-year median of 16.02 and 7.1% below the Industrial Products industry median of 5.86. NARI Technology Co's overall GF Score™ is 97/100 with 1 warning sign 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 NARI Technology Co (SHSE:600406), the current ROE % is 5.44% 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 NARI Technology Co (SHSE:600406) Overvalued in 2026?
Based on GuruFocus' analysis, NARI Technology Co stock appears to be undervalued.
The current stock price of ¥23.16 is trading 22.7% below its estimated GF Value™ of ¥29.97.
GuruFocus considers NARI Technology Co to be Modestly Undervalued.
Key valuation signals for SHSE:600406:
ROE %: 5.44% (66% below median its 10-year median of 16.02)
GF Value™: ¥29.97 vs. price of ¥23.16 (22.7% below fair value)
Industry Position: 7.1% below the Industrial Products median (#453 of 2998)
No single metric tells the full story. See the SHSE:600406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NARI Technology Co Ltd is engaged in providing power & automation technologies in China. It operates in areas of power system automation, smart grid, renewable energy, railway automation, industrial control, & energy conservation & environment protection.
97GF Score
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