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Henan Thinker Automatic Equipment Co (SHSE:603508) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Henan Thinker Automatic Equipment Co ROE % Related Terms
Henan Thinker Automatic Equipment 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 Scientific & Technical Instruments subindustry, Henan Thinker Automatic Equipment 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.
Henan Thinker Automatic Equipment Co ROE % vs Hardware 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Henan Thinker Automatic Equipment Co (SHSE:603508) has a ROE % of 15.16% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Henan Thinker Automatic Equipment Co and its competitors. This is 75% above median its historical median of 8.68. According to the industry distribution chart, Henan Thinker Automatic Equipment Co ranks #484 out of 2429 companies in the Hardware industry, placing it in the top 19.9%.
Is Henan Thinker Automatic Equipment Co's ROE % too high?
Henan Thinker Automatic Equipment Co's current ROE % of 15.16% is 75% above median its 10-year median of 8.68. The Hardware industry median ROE % is 4.68. Henan Thinker Automatic Equipment Co's value of 15.16% is 223.9% above this industry median. Based on the distribution chart, Henan Thinker Automatic Equipment Co ranks #484 out of 2429 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Henan Thinker Automatic Equipment Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Henan Thinker Automatic Equipment Co's ROE % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Henan Thinker Automatic Equipment Co ranks #484 out of 2429 companies for ROE %. This places Henan Thinker Automatic Equipment Co in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 4.68. Henan Thinker Automatic Equipment Co's value of 15.16% is 223.9% above this benchmark. While the company's 10-year median is 8.68 vs. the industry median of 4.68, Henan Thinker Automatic Equipment 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 Hardware company?
The median ROE % among Hardware companies is 4.68, based on 2,429 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. Henan Thinker Automatic Equipment Co's current ROE % of 15.16% is 223.9% 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 Henan Thinker Automatic Equipment Co and its competitors. For the Hardware industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Thinker Automatic Equipment Co's current ROE % is 15.16%, which is 75% above median its own 10-year median of 8.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Thinker Automatic Equipment Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Thinker Automatic Equipment Co (SHSE:603508) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥27.45, compared to a current price of ¥21.50 — trading 21.7% below its estimated fair value. The current ROE % is 15.16%, which is 75% above median its 10-year median of 8.68 and 223.9% above the Hardware industry median of 4.68. Henan Thinker Automatic Equipment Co's overall GF Score™ is 75/100 with 2 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 Henan Thinker Automatic Equipment Co (SHSE:603508), the current ROE % is 15.16% as of Jun. 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 Henan Thinker Automatic Equipment Co (SHSE:603508) Overvalued in 2026?
Based on GuruFocus' analysis, Henan Thinker Automatic Equipment Co stock appears to be undervalued.
The current stock price of ¥21.50 is trading 21.7% below its estimated GF Value™ of ¥27.45.
GuruFocus considers Henan Thinker Automatic Equipment Co to be Modestly Undervalued.
Key valuation signals for SHSE:603508:
ROE %: 15.16% (75% above median its 10-year median of 8.68)
GF Value™: ¥27.45 vs. price of ¥21.50 (21.7% below fair value)
Industry Position: 223.9% above the Hardware median (#484 of 2429)
No single metric tells the full story. See the SHSE:603508 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henan Thinker Automatic Equipment Co Ltd is engaged in Software and IT services. Its products include LKJ2000 train running monitor device, Wireless Shunting Locomotive Signaling and monitoring systems, and among others.
75GF Score
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