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SHSE:600461'
s ROE % Range Over the Past 10 Years
Min: 8.44 Med: 12.7 Max: 16.32
Current: 11.98
During the past 13 years, Jiangxi Hongcheng Environment Co's highest ROE % was 16.32%. The lowest was 8.44%. And the median was 12.70%.
SHSE:600461's ROE % is ranked better than 69.38% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.68
vs SHSE:600461: 11.98
Jiangxi Hongcheng Environment Co (SHSE:600461) 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.
Jiangxi Hongcheng Environment Co ROE % Related Terms
Jiangxi Hongcheng Environment 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 - Regulated Water subindustry, Jiangxi Hongcheng Environment 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.
Jiangxi Hongcheng Environment Co ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Jiangxi Hongcheng Environment Co's ROE % distribution charts can be found below:
* The bar in red indicates where Jiangxi Hongcheng Environment 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.
Jiangxi Hongcheng Environment Co (SHSE:600461) has a ROE % of 12.46% 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 Jiangxi Hongcheng Environment Co and its competitors. This is near median its historical median of 12.70. Over the past decade, Jiangxi Hongcheng Environment Co's ROE % has ranged from 8.44 to 16.32. According to the industry distribution chart, Jiangxi Hongcheng Environment Co ranks #154 out of 503 companies in the Utilities - Regulated industry, placing it in the top 30.6%.
Is Jiangxi Hongcheng Environment Co's ROE % too high?
Jiangxi Hongcheng Environment Co's current ROE % of 12.46% is near median its 10-year median of 12.70. Over the past 10 years, this metric has ranged from a low of 8.44 to a high of 16.32. The Utilities - Regulated industry median ROE % is 8.68. Jiangxi Hongcheng Environment Co's value of 12.46% is 43.5% above this industry median. Based on the distribution chart, Jiangxi Hongcheng Environment Co ranks #154 out of 503 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Jiangxi Hongcheng Environment Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangxi Hongcheng Environment Co's ROE % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Jiangxi Hongcheng Environment Co ranks #154 out of 503 companies for ROE %. This puts Jiangxi Hongcheng Environment Co in the upper half of its industry. The industry median ROE % is 8.68. Jiangxi Hongcheng Environment Co's value of 12.46% is 43.5% above this benchmark. Historically, Jiangxi Hongcheng Environment Co's own ROE % has ranged from 8.44 to 16.32 over the past decade. While the company's 10-year median is 12.70 vs. the industry median of 8.68, Jiangxi Hongcheng Environment 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 - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.68, based on 503 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. Jiangxi Hongcheng Environment Co's current ROE % of 12.46% is 43.5% 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 Jiangxi Hongcheng Environment Co and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangxi Hongcheng Environment Co's current ROE % is 12.46%, which is near median its own 10-year median of 12.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangxi Hongcheng Environment Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangxi Hongcheng Environment Co (SHSE:600461) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥8.20, compared to a current price of ¥9.27 — trading 13% above its estimated fair value. The current ROE % is 12.46%, which is near median its 10-year median of 12.70 and 43.5% above the Utilities - Regulated industry median of 8.68. Jiangxi Hongcheng Environment Co's overall GF Score™ is 76/100 with 4 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 Jiangxi Hongcheng Environment Co (SHSE:600461), the current ROE % is 12.46% 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 Jiangxi Hongcheng Environment Co (SHSE:600461) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangxi Hongcheng Environment Co stock appears to be overvalued.
The current stock price of ¥9.27 is trading 13% above its estimated GF Value™ of ¥8.20.
GuruFocus considers Jiangxi Hongcheng Environment Co to be Modestly Overvalued.
Key valuation signals for SHSE:600461:
ROE %: 12.46% (near median its 10-year median of 12.70)
GF Value™: ¥8.20 vs. price of ¥9.27 (13% above fair value)
Industry Position: 43.5% above the Utilities - Regulated median (#154 of 503)
No single metric tells the full story. See the SHSE:600461 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangxi Hongcheng Environment Co Business Description
Jiangxi Hongcheng Environment Co Ltd is a China-based engaged in the production and operation of water and wastewater treatment. The company is mainly engaged in tap water production and supply, sewage treatment, gas energy and other businesses.
76GF Score
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