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The historical rank and industry rank for China Railway Construction's ROE % or its related term are showing as below:
SHSE:601186'
s ROE % Range Over the Past 10 Years
Min: 5.16 Med: 9.6 Max: 11.53
Current: 5.16
During the past 13 years, China Railway Construction's highest ROE % was 11.53%. The lowest was 5.16%. And the median was 9.60%.
SHSE:601186's ROE % is ranked worse than 56.84% of 1747
companies
in the Construction industry
Industry Median: 6.74
vs SHSE:601186: 5.16
China Railway Construction (SHSE:601186) 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.
* 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 Engineering & Construction subindustry, China Railway Construction'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.
China Railway Construction ROE % vs Construction Industry
For the Construction industry and Industrials sector, China Railway Construction's ROE % distribution charts can be found below:
* The bar in red indicates where China Railway Construction'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.
China Railway Construction (SHSE:601186) has a ROE % of 5.09% 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 China Railway Construction and its competitors. This is 47% below median its historical median of 9.60. Over the past decade, China Railway Construction's ROE % has ranged from 5.16 to 11.53. According to the industry distribution chart, China Railway Construction ranks #993 out of 1747 companies in the Construction industry, placing it in the top 56.8%.
Is China Railway Construction's ROE % too high?
China Railway Construction's current ROE % of 5.09% is 47% below median its 10-year median of 9.60. Over the past 10 years, this metric has ranged from a low of 5.16 to a high of 11.53. The Construction industry median ROE % is 6.74. China Railway Construction's value of 5.09% is 24.5% below this industry median. Based on the distribution chart, China Railway Construction ranks #993 out of 1747 companies in the Construction industry, which is below the industry midpoint. Overall, China Railway Construction has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Construction's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, China Railway Construction ranks #993 out of 1747 companies for ROE %. This places China Railway Construction in the lower half of its industry. The industry median ROE % is 6.74. China Railway Construction's value of 5.09% is 24.5% below this benchmark. Historically, China Railway Construction's own ROE % has ranged from 5.16 to 11.53 over the past decade. While the company's 10-year median is 9.60 vs. the industry median of 6.74, China Railway Construction 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 Construction company?
The median ROE % among Construction companies is 6.74, based on 1,747 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. China Railway Construction's current ROE % of 5.09% is 24.5% 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 China Railway Construction and its competitors. For the Construction industry, the median ROE % is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Construction's current ROE % is 5.09%, which is 47% below median its own 10-year median of 9.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Construction stock overvalued right now?
Based on GuruFocus' analysis, China Railway Construction (SHSE:601186) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥7.43, compared to a current price of ¥6.58 — trading 11.4% below its estimated fair value. The current ROE % is 5.09%, which is 47% below median its 10-year median of 9.60 and 24.5% below the Construction industry median of 6.74. China Railway Construction's overall GF Score™ is 68/100 with 6 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 China Railway Construction (SHSE:601186), the current ROE % is 5.09% 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 China Railway Construction (SHSE:601186) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Construction stock appears to be undervalued.
The current stock price of ¥6.58 is trading 11.4% below its estimated GF Value™ of ¥7.43.
GuruFocus considers China Railway Construction to be Modestly Undervalued.
Key valuation signals for SHSE:601186:
ROE %: 5.09% (47% below median its 10-year median of 9.60)
GF Value™: ¥7.43 vs. price of ¥6.58 (11.4% below fair value)
Industry Position: 24.5% below the Construction median (#993 of 1747)
No single metric tells the full story. See the SHSE:601186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Construction Corp Ltd operates as an infrastructure construction firm. It largely derives contracting revenue. It builds railways, highways and municipal works, such as subways and light rail systems. The company also engages in survey and design, manufacturing, logistics, and property development. It operates the following business segments: Engineering contracting business, Planning, design and consultancy, Manufacturing operation, Real estate development operation, Materials and logistics and other businesses. The firm's revenue gets dominated by the Engineering contracting business segment that engages in the construction of infrastructure such as railways, highways, metropolitan railways, and real estate projects.
68GF Score
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