SHSE:600426's ROE % is ranked better than 77.1% of 1585
companies
in the Chemicals industry
Industry Median: 5.2
vs SHSE:600426: 11.38
Shandong Hualu-hengsheng Chemical Co (SHSE:600426) 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.
Shandong Hualu-hengsheng Chemical Co ROE % Related Terms
Shandong Hualu-hengsheng Chemical 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 Chemicals subindustry, Shandong Hualu-hengsheng Chemical 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.
Shandong Hualu-hengsheng Chemical Co 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 four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Shandong Hualu-hengsheng Chemical Co (SHSE:600426) has a ROE % of 13.28% 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 Shandong Hualu-hengsheng Chemical Co and its competitors. This is near median its historical median of 13.52. Over the past decade, Shandong Hualu-hengsheng Chemical Co's ROE % has ranged from 10.35 to 38.53. According to the industry distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #363 out of 1585 companies in the Chemicals industry, placing it in the top 22.9%.
Is Shandong Hualu-hengsheng Chemical Co's ROE % too high?
Shandong Hualu-hengsheng Chemical Co's current ROE % of 13.28% is near median its 10-year median of 13.52. Over the past 10 years, this metric has ranged from a low of 10.35 to a high of 38.53. The Chemicals industry median ROE % is 5.20. Shandong Hualu-hengsheng Chemical Co's value of 13.28% is 155.4% above this industry median. Based on the distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #363 out of 1585 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Shandong Hualu-hengsheng Chemical Co has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Hualu-hengsheng Chemical Co's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #363 out of 1585 companies for ROE %. This places Shandong Hualu-hengsheng Chemical Co in the top 23% of its industry — outperforming the majority of peers. The industry median ROE % is 5.20. Shandong Hualu-hengsheng Chemical Co's value of 13.28% is 155.4% above this benchmark. Historically, Shandong Hualu-hengsheng Chemical Co's own ROE % has ranged from 10.35 to 38.53 over the past decade. While the company's 10-year median is 13.52 vs. the industry median of 5.20, Shandong Hualu-hengsheng Chemical 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 a Chemicals company?
The median ROE % among Chemicals companies is 5.20, based on 1,585 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. Shandong Hualu-hengsheng Chemical Co's current ROE % of 13.28% is 155.4% 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 Shandong Hualu-hengsheng Chemical Co and its competitors. For the Chemicals industry, the median ROE % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Hualu-hengsheng Chemical Co's current ROE % is 13.28%, which is near median its own 10-year median of 13.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Hualu-hengsheng Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Hualu-hengsheng Chemical Co (SHSE:600426) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥30.39, compared to a current price of ¥24.30 — trading 20% below its estimated fair value. The current ROE % is 13.28%, which is near median its 10-year median of 13.52 and 155.4% above the Chemicals industry median of 5.20. Shandong Hualu-hengsheng Chemical Co's overall GF Score™ is 95/100 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 Shandong Hualu-hengsheng Chemical Co (SHSE:600426), the current ROE % is 13.28% 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 Shandong Hualu-hengsheng Chemical Co (SHSE:600426) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Hualu-hengsheng Chemical Co stock appears to be undervalued.
The current stock price of ¥24.30 is trading 20% below its estimated GF Value™ of ¥30.39.
GuruFocus considers Shandong Hualu-hengsheng Chemical Co to be Modestly Undervalued.
Key valuation signals for SHSE:600426:
ROE %: 13.28% (near median its 10-year median of 13.52)
GF Value™: ¥30.39 vs. price of ¥24.30 (20% below fair value)
Industry Position: 155.4% above the Chemicals median (#363 of 1585)
No single metric tells the full story. See the SHSE:600426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Hualu-hengsheng Chemical Co Business Description
Shandong Hualu-Hengsheng Chemical Co Ltd is engaged in the production and sale of chemical products and chemical fertilizers, as well as power generation and heating businesses. The company's main products include new energy and new materials related products such as caprolactam, adipic acid, and others, chemical fertilizers such as urea and others, organic amines such as dimethylformamide (DMF), monomethylamine, and others, and acetic acid and derivatives products such as acetic acid, acetic anhydride, and others.
95GF Score
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