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Nanjing Well Pharmaceutical Group Co (SHSE:603351) 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.
Nanjing Well Pharmaceutical Group Co ROE % Related Terms
Nanjing Well Pharmaceutical Group 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 Drug Manufacturers - Specialty & Generic subindustry, Nanjing Well Pharmaceutical Group 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.
Nanjing Well Pharmaceutical Group Co ROE % vs Drug Manufacturers 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.
Nanjing Well Pharmaceutical Group Co (SHSE:603351) has a ROE % of 8.29% 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 Nanjing Well Pharmaceutical Group Co and its competitors. This is near median its historical median of 8.77. Over the past decade, Nanjing Well Pharmaceutical Group Co's ROE % has ranged from 6.64 to 22.01. According to the industry distribution chart, Nanjing Well Pharmaceutical Group Co ranks #373 out of 935 companies in the Drug Manufacturers industry, placing it in the top 39.9%.
Is Nanjing Well Pharmaceutical Group Co's ROE % too high?
Nanjing Well Pharmaceutical Group Co's current ROE % of 8.29% is near median its 10-year median of 8.77. Over the past 10 years, this metric has ranged from a low of 6.64 to a high of 22.01. The Drug Manufacturers industry median ROE % is 5.92. Nanjing Well Pharmaceutical Group Co's value of 8.29% is 40% above this industry median. Based on the distribution chart, Nanjing Well Pharmaceutical Group Co ranks #373 out of 935 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Nanjing Well Pharmaceutical Group Co has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nanjing Well Pharmaceutical Group Co's ROE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Nanjing Well Pharmaceutical Group Co ranks #373 out of 935 companies for ROE %. This puts Nanjing Well Pharmaceutical Group Co in the upper half of its industry. The industry median ROE % is 5.92. Nanjing Well Pharmaceutical Group Co's value of 8.29% is 40% above this benchmark. Historically, Nanjing Well Pharmaceutical Group Co's own ROE % has ranged from 6.64 to 22.01 over the past decade. While the company's 10-year median is 8.77 vs. the industry median of 5.92, Nanjing Well Pharmaceutical Group 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 a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.92, based on 935 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. Nanjing Well Pharmaceutical Group Co's current ROE % of 8.29% is 40% 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 Nanjing Well Pharmaceutical Group Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nanjing Well Pharmaceutical Group Co's current ROE % is 8.29%, which is near median its own 10-year median of 8.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanjing Well Pharmaceutical Group Co stock overvalued right now?
Based on GuruFocus' analysis, Nanjing Well Pharmaceutical Group Co (SHSE:603351) is currently considered Fairly Valued. The stock's GF Value™ is ¥28.01, compared to a current price of ¥26.93 — trading 3.9% below its estimated fair value. The current ROE % is 8.29%, which is near median its 10-year median of 8.77 and 40% above the Drug Manufacturers industry median of 5.92. Nanjing Well Pharmaceutical Group Co's overall GF Score™ is 81/100 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 Nanjing Well Pharmaceutical Group Co (SHSE:603351), the current ROE % is 8.29% 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 Nanjing Well Pharmaceutical Group Co (SHSE:603351) Overvalued in 2026?
Based on GuruFocus' analysis, Nanjing Well Pharmaceutical Group Co stock appears to be undervalued.
The current stock price of ¥26.93 is trading 3.9% below its estimated GF Value™ of ¥28.01.
GuruFocus considers Nanjing Well Pharmaceutical Group Co to be Fairly Valued.
Key valuation signals for SHSE:603351:
ROE %: 8.29% (near median its 10-year median of 8.77)
GF Value™: ¥28.01 vs. price of ¥26.93 (3.9% below fair value)
Industry Position: 40% above the Drug Manufacturers median (#373 of 935)
No single metric tells the full story. See the SHSE:603351 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nanjing Well Pharmaceutical Group Co Ltd is engaged in research and development, production and sales of pharmaceutical auxiliary materials and synthetic lubricating base oil and other products. The company uses a variety of pharmaceutical dosage forms such as injection, oral administration and external use to guarantee the molding, effectiveness, stability and safety of pharmaceutical dosage forms.
81GF Score
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