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SHSE:600742's ROE % is ranked worse than 56.02% of 1305
companies
in the Vehicles & Parts industry
Industry Median: 6.64
vs SHSE:600742: 5.24
Changchun FAWAY Group Automobile Components Co (SHSE:600742) 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.
Changchun FAWAY Group Automobile Components Co ROE % Related Terms
Changchun FAWAY Group Automobile Components 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.
Changchun FAWAY Group Automobile Components Co ROE % Chart
Changchun FAWAY Group Automobile Components Co Annual Data
* 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.
Changchun FAWAY Group Automobile Components Co ROE % vs Vehicles & Parts 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.
Changchun FAWAY Group Automobile Components Co (SHSE:600742) has a ROE % of 3.86% 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 Changchun FAWAY Group Automobile Components Co and its competitors. This is 62% below median its historical median of 10.07. Over the past decade, Changchun FAWAY Group Automobile Components Co's ROE % has ranged from 5.24 to 10.57. According to the industry distribution chart, Changchun FAWAY Group Automobile Components Co ranks #731 out of 1305 companies in the Vehicles & Parts industry, placing it in the top 56%.
Is Changchun FAWAY Group Automobile Components Co's ROE % too high?
Changchun FAWAY Group Automobile Components Co's current ROE % of 3.86% is 62% below median its 10-year median of 10.07. Over the past 10 years, this metric has ranged from a low of 5.24 to a high of 10.57. The Vehicles & Parts industry median ROE % is 6.64. Changchun FAWAY Group Automobile Components Co's value of 3.86% is 41.9% below this industry median. Based on the distribution chart, Changchun FAWAY Group Automobile Components Co ranks #731 out of 1305 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Changchun FAWAY Group Automobile Components Co has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Changchun FAWAY Group Automobile Components Co's ROE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Changchun FAWAY Group Automobile Components Co ranks #731 out of 1305 companies for ROE %. This places Changchun FAWAY Group Automobile Components Co in the lower half of its industry. The industry median ROE % is 6.64. Changchun FAWAY Group Automobile Components Co's value of 3.86% is 41.9% below this benchmark. Historically, Changchun FAWAY Group Automobile Components Co's own ROE % has ranged from 5.24 to 10.57 over the past decade. While the company's 10-year median is 10.07 vs. the industry median of 6.64, Changchun FAWAY Group Automobile Components 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 Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.64, based on 1,305 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. Changchun FAWAY Group Automobile Components Co's current ROE % of 3.86% is 41.9% 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 Changchun FAWAY Group Automobile Components Co and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changchun FAWAY Group Automobile Components Co's current ROE % is 3.86%, which is 62% below median its own 10-year median of 10.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changchun FAWAY Group Automobile Components Co stock overvalued right now?
Based on GuruFocus' analysis, Changchun FAWAY Group Automobile Components Co (SHSE:600742) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥8.71, compared to a current price of ¥7.15 — trading 17.9% below its estimated fair value. The current ROE % is 3.86%, which is 62% below median its 10-year median of 10.07 and 41.9% below the Vehicles & Parts industry median of 6.64. Changchun FAWAY Group Automobile Components Co's overall GF Score™ is 58/100 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 Changchun FAWAY Group Automobile Components Co (SHSE:600742), the current ROE % is 3.86% 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 Changchun FAWAY Group Automobile Components Co (SHSE:600742) Overvalued in 2026?
Based on GuruFocus' analysis, Changchun FAWAY Group Automobile Components Co stock appears to be undervalued.
The current stock price of ¥7.15 is trading 17.9% below its estimated GF Value™ of ¥8.71.
GuruFocus considers Changchun FAWAY Group Automobile Components Co to be Modestly Undervalued.
Key valuation signals for SHSE:600742:
ROE %: 3.86% (62% below median its 10-year median of 10.07)
GF Value™: ¥8.71 vs. price of ¥7.15 (17.9% below fair value)
Industry Position: 41.9% below the Vehicles & Parts median (#731 of 1305)
No single metric tells the full story. See the SHSE:600742 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Changchun FAWAY Group Automobile Components Co Business Description
Changchun FAWAY Group Automobile Components Co Ltd is a China-based company principally engaged in the Automobile modification, automobile parts design, production, sales, warehousing, labor services, equipment and site leasing, etc.
58GF Score
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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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