SHSE:603538'
s ROE % Range Over the Past 10 Years
Min: 0.55 Med: 8.47 Max: 17.67
Current: 4.88
During the past 13 years, Ningbo Menovo Pharmaceutical Co's highest ROE % was 17.67%. The lowest was 0.55%. And the median was 8.47%.
SHSE:603538's ROE % is ranked worse than 53.8% of 935
companies
in the Drug Manufacturers industry
Industry Median: 6
vs SHSE:603538: 4.88
Ningbo Menovo Pharmaceutical Co (SHSE:603538) 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.
Ningbo Menovo Pharmaceutical Co ROE % Related Terms
Ningbo Menovo Pharmaceutical 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, Ningbo Menovo Pharmaceutical 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.
Ningbo Menovo Pharmaceutical Co ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ningbo Menovo Pharmaceutical Co's ROE % distribution charts can be found below:
* The bar in red indicates where Ningbo Menovo Pharmaceutical Co'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.
Ningbo Menovo Pharmaceutical Co (SHSE:603538) has a ROE % of 5.29% 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 Ningbo Menovo Pharmaceutical Co and its competitors. This is 38% below median its historical median of 8.47. Over the past decade, Ningbo Menovo Pharmaceutical Co's ROE % has ranged from 0.55 to 17.67. According to the industry distribution chart, Ningbo Menovo Pharmaceutical Co ranks #503 out of 935 companies in the Drug Manufacturers industry, placing it in the top 53.8%.
Is Ningbo Menovo Pharmaceutical Co's ROE % too high?
Ningbo Menovo Pharmaceutical Co's current ROE % of 5.29% is 38% below median its 10-year median of 8.47. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 17.67. The Drug Manufacturers industry median ROE % is 6.00. Ningbo Menovo Pharmaceutical Co's value of 5.29% is 11.8% below this industry median. Based on the distribution chart, Ningbo Menovo Pharmaceutical Co ranks #503 out of 935 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Ningbo Menovo Pharmaceutical Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ningbo Menovo Pharmaceutical Co's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Ningbo Menovo Pharmaceutical Co ranks #503 out of 935 companies for ROE %. This places Ningbo Menovo Pharmaceutical Co in the lower half of its industry. The industry median ROE % is 6.00. Ningbo Menovo Pharmaceutical Co's value of 5.29% is 11.8% below this benchmark. Historically, Ningbo Menovo Pharmaceutical Co's own ROE % has ranged from 0.55 to 17.67 over the past decade. While the company's 10-year median is 8.47 vs. the industry median of 6.00, Ningbo Menovo Pharmaceutical Co 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 Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 6.00, 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. Ningbo Menovo Pharmaceutical Co's current ROE % of 5.29% is 11.8% 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 Ningbo Menovo Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ningbo Menovo Pharmaceutical Co's current ROE % is 5.29%, which is 38% below median its own 10-year median of 8.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ningbo Menovo Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Ningbo Menovo Pharmaceutical Co (SHSE:603538) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥22.30, compared to a current price of ¥43.70 — trading 96% above its estimated fair value. The current ROE % is 5.29%, which is 38% below median its 10-year median of 8.47 and 11.8% below the Drug Manufacturers industry median of 6.00. Ningbo Menovo Pharmaceutical Co's overall GF Score™ is 62/100 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 Ningbo Menovo Pharmaceutical Co (SHSE:603538), the current ROE % is 5.29% 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 Ningbo Menovo Pharmaceutical Co (SHSE:603538) Overvalued in 2026?
Based on GuruFocus' analysis, Ningbo Menovo Pharmaceutical Co stock appears to be overvalued.
The current stock price of ¥43.70 is trading 96% above its estimated GF Value™ of ¥22.30.
GuruFocus considers Ningbo Menovo Pharmaceutical Co to be Significantly Overvalued.
Key valuation signals for SHSE:603538:
ROE %: 5.29% (38% below median its 10-year median of 8.47)
GF Value™: ¥22.30 vs. price of ¥43.70 (96% above fair value)
Industry Position: 11.8% below the Drug Manufacturers median (#503 of 935)
No single metric tells the full story. See the SHSE:603538 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ningbo Menovo Pharmaceutical Co Business Description
Ningbo Menovo Pharmaceutical Co Ltd is a China-based company is engaged in the research and development, pilot, production and sales of pharmaceutical intermediates, APIs and finished drugs. Its products line includes cardiovascular, central nervous, respiratory, anti-tumor, anti-infective, digestive system, geriatric diseases and anti-viral systems.
62GF Score
Get the complete analysis for SHSE:603538
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:603538 has been successfully added to your 
