Inner Mongolia Mengdian Huaneng Thermal Power (SHSE:600863) 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.
Inner Mongolia Mengdian Huaneng Thermal Power ROE % Related Terms
Inner Mongolia Mengdian Huaneng Thermal Power 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.
Inner Mongolia Mengdian Huaneng Thermal Power ROE % Chart
Inner Mongolia Mengdian Huaneng Thermal Power Annual Data
For the Utilities - Independent Power Producers subindustry, Inner Mongolia Mengdian Huaneng Thermal Power'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.
Inner Mongolia Mengdian Huaneng Thermal Power ROE % vs Utilities - Independent Power Producers 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.
Inner Mongolia Mengdian Huaneng Thermal Power (SHSE:600863) has a ROE % of 14.77% 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 Inner Mongolia Mengdian Huaneng Thermal Power and its competitors. This is 103% above median its historical median of 7.26. Over the past decade, Inner Mongolia Mengdian Huaneng Thermal Power's ROE % has ranged from 3.20 to 15.51. According to the industry distribution chart, Inner Mongolia Mengdian Huaneng Thermal Power ranks #87 out of 434 companies in the Utilities - Independent Power Producers industry, placing it in the top 20%.
Is Inner Mongolia Mengdian Huaneng Thermal Power's ROE % too high?
Inner Mongolia Mengdian Huaneng Thermal Power's current ROE % of 14.77% is 103% above median its 10-year median of 7.26. Over the past 10 years, this metric has ranged from a low of 3.20 to a high of 15.51. The Utilities - Independent Power Producers industry median ROE % is 3.82. Inner Mongolia Mengdian Huaneng Thermal Power's value of 14.77% is 286.6% above this industry median. Based on the distribution chart, Inner Mongolia Mengdian Huaneng Thermal Power ranks #87 out of 434 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Inner Mongolia Mengdian Huaneng Thermal Power has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Inner Mongolia Mengdian Huaneng Thermal Power's ROE % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Inner Mongolia Mengdian Huaneng Thermal Power ranks #87 out of 434 companies for ROE %. This places Inner Mongolia Mengdian Huaneng Thermal Power in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 3.82. Inner Mongolia Mengdian Huaneng Thermal Power's value of 14.77% is 286.6% above this benchmark. Historically, Inner Mongolia Mengdian Huaneng Thermal Power's own ROE % has ranged from 3.20 to 15.51 over the past decade. While the company's 10-year median is 7.26 vs. the industry median of 3.82, Inner Mongolia Mengdian Huaneng Thermal Power 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 - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.82, based on 434 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. Inner Mongolia Mengdian Huaneng Thermal Power's current ROE % of 14.77% is 286.6% 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 Inner Mongolia Mengdian Huaneng Thermal Power and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inner Mongolia Mengdian Huaneng Thermal Power's current ROE % is 14.77%, which is 103% above median its own 10-year median of 7.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inner Mongolia Mengdian Huaneng Thermal Power stock overvalued right now?
Based on GuruFocus' analysis, Inner Mongolia Mengdian Huaneng Thermal Power (SHSE:600863) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥3.70, compared to a current price of ¥4.76 — trading 28.6% above its estimated fair value. The current ROE % is 14.77%, which is 103% above median its 10-year median of 7.26 and 286.6% above the Utilities - Independent Power Producers industry median of 3.82. Inner Mongolia Mengdian Huaneng Thermal Power's overall GF Score™ is 76/100 with 3 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 Inner Mongolia Mengdian Huaneng Thermal Power (SHSE:600863), the current ROE % is 14.77% 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 Inner Mongolia Mengdian Huaneng Thermal Power (SHSE:600863) Overvalued in 2026?
Based on GuruFocus' analysis, Inner Mongolia Mengdian Huaneng Thermal Power stock appears to be overvalued.
The current stock price of ¥4.76 is trading 28.6% above its estimated GF Value™ of ¥3.70.
GuruFocus considers Inner Mongolia Mengdian Huaneng Thermal Power to be Modestly Overvalued.
Key valuation signals for SHSE:600863:
ROE %: 14.77% (103% above median its 10-year median of 7.26)
GF Value™: ¥3.70 vs. price of ¥4.76 (28.6% above fair value)
Industry Position: 286.6% above the Utilities - Independent Power Producers median (#87 of 434)
No single metric tells the full story. See the SHSE:600863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Inner Mongolia Mengdian Huaneng Thermal Power Business Description
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