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Sinoma Energy ConservationSHSE:603126 +1.72%62 ROE % is 2.09% as of Mar. 2026, which is 72% below its 10-year median of 7.50. GuruFocus rates SHSE:603126 with a GF Score™ of 62/100 and a GF Value™ of ¥9.92 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 437 Utilities - Independent Power Producers companies, Sinoma Energy Conservation ranks worse than 59.5% on this metric.
Sinoma Energy Conservation (SHSE:603126) 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.
Sinoma Energy Conservation ROE % Competitor Comparison
For the Utilities - Renewable subindustry, Sinoma Energy Conservation'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.
Sinoma Energy Conservation ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Sinoma Energy Conservation's ROE % distribution charts can be found below:
* The bar in red indicates where Sinoma Energy Conservation'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.
Sinoma Energy Conservation (SHSE:603126) has a ROE % of 2.09% 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 Sinoma Energy Conservation and its competitors. This is 72% below median its historical median of 7.50. Over the past decade, Sinoma Energy Conservation's ROE % has ranged from 0.37 to 9.08. According to the industry distribution chart, Sinoma Energy Conservation ranks #260 out of 437 companies in the Utilities - Independent Power Producers industry, placing it in the top 59.5%.
Is Sinoma Energy Conservation's ROE % too high?
Sinoma Energy Conservation's current ROE % of 2.09% is 72% below median its 10-year median of 7.50. Over the past 10 years, this metric has ranged from a low of 0.37 to a high of 9.08. The Utilities - Independent Power Producers industry median ROE % is 3.80. Sinoma Energy Conservation's value of 2.09% is 45% below this industry median. Based on the distribution chart, Sinoma Energy Conservation ranks #260 out of 437 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Sinoma Energy Conservation has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sinoma Energy Conservation's ROE % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Sinoma Energy Conservation ranks #260 out of 437 companies for ROE %. This places Sinoma Energy Conservation in the lower half of its industry. The industry median ROE % is 3.80. Sinoma Energy Conservation's value of 2.09% is 45% below this benchmark. Historically, Sinoma Energy Conservation's own ROE % has ranged from 0.37 to 9.08 over the past decade. While the company's 10-year median is 7.50 vs. the industry median of 3.80, Sinoma Energy Conservation 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 an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.80, based on 437 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. Sinoma Energy Conservation's current ROE % of 2.09% is 45% 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 Sinoma Energy Conservation and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sinoma Energy Conservation's current ROE % is 2.09%, which is 72% below median its own 10-year median of 7.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sinoma Energy Conservation stock overvalued right now?
Based on GuruFocus' analysis, Sinoma Energy Conservation (SHSE:603126) is currently considered Possible Value Trap. The stock's GF Value™ is ¥9.92, compared to a current price of ¥5.93 — trading 40.2% below its estimated fair value. The current ROE % is 2.09%, which is 72% below median its 10-year median of 7.50 and 45% below the Utilities - Independent Power Producers industry median of 3.80. Sinoma Energy Conservation's overall GF Score™ is 62/100 with 7 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 Sinoma Energy Conservation (SHSE:603126), the current ROE % is 2.09% 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 Sinoma Energy Conservation (SHSE:603126) Overvalued in 2026?
Based on GuruFocus' analysis, Sinoma Energy Conservation stock appears to be undervalued.
The current stock price of ¥5.93 is trading 40.2% below its estimated GF Value™ of ¥9.92.
GuruFocus considers Sinoma Energy Conservation to be Possible Value Trap.
Key valuation signals for SHSE:603126:
ROE %: 2.09% (72% below median its 10-year median of 7.50)
GF Value™: ¥9.92 vs. price of ¥5.93 (40.2% below fair value)
Industry Position: 45% below the Utilities - Independent Power Producers median (#260 of 437)
No single metric tells the full story. See the SHSE:603126 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sinoma Energy Conservation Ltd is engaged in energy conservation and waste reduction. Its business scope mainly includes investment of waste heat power generation project (BOT); engineering technology development, consultancy and design of waste heat power generation (EP); turn-key contract (EPC); supply of clean development mechanism (CDM); development proposals and technology consultancy.
62GF Score
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