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Ningbo Water Meter (Group) Co (SHSE:603700) 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 Water Meter (Group) Co ROE % Related Terms
Ningbo Water Meter (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 Electrical Equipment & Parts subindustry, Ningbo Water Meter (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.
Ningbo Water Meter (Group) Co ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ningbo Water Meter (Group) Co's ROE % distribution charts can be found below:
* The bar in red indicates where Ningbo Water Meter (Group) 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 Water Meter (Group) Co (SHSE:603700) has a ROE % of 2.64% 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 Water Meter (Group) Co and its competitors. This is 85% below median its historical median of 17.85. Over the past decade, Ningbo Water Meter (Group) Co's ROE % has ranged from 3.26 to 40.03. According to the industry distribution chart, Ningbo Water Meter (Group) Co ranks #1675 out of 3005 companies in the Industrial Products industry, placing it in the top 55.7%.
Is Ningbo Water Meter (Group) Co's ROE % too high?
Ningbo Water Meter (Group) Co's current ROE % of 2.64% is 85% below median its 10-year median of 17.85. Over the past 10 years, this metric has ranged from a low of 3.26 to a high of 40.03. The Industrial Products industry median ROE % is 5.91. Ningbo Water Meter (Group) Co's value of 2.64% is 55.3% below this industry median. Based on the distribution chart, Ningbo Water Meter (Group) Co ranks #1675 out of 3005 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Ningbo Water Meter (Group) Co has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ningbo Water Meter (Group) Co's ROE % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Ningbo Water Meter (Group) Co ranks #1675 out of 3005 companies for ROE %. This places Ningbo Water Meter (Group) Co in the lower half of its industry. The industry median ROE % is 5.91. Ningbo Water Meter (Group) Co's value of 2.64% is 55.3% below this benchmark. Historically, Ningbo Water Meter (Group) Co's own ROE % has ranged from 3.26 to 40.03 over the past decade. While the company's 10-year median is 17.85 vs. the industry median of 5.91, Ningbo Water Meter (Group) 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,005 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 Water Meter (Group) Co's current ROE % of 2.64% is 55.3% 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 Water Meter (Group) Co and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ningbo Water Meter (Group) Co's current ROE % is 2.64%, which is 85% below median its own 10-year median of 17.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ningbo Water Meter (Group) Co stock overvalued right now?
Based on GuruFocus' analysis, Ningbo Water Meter (Group) Co (SHSE:603700) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥14.24, compared to a current price of ¥11.06 — trading 22.3% below its estimated fair value. The current ROE % is 2.64%, which is 85% below median its 10-year median of 17.85 and 55.3% below the Industrial Products industry median of 5.91. Ningbo Water Meter (Group) Co's overall GF Score™ is 71/100 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 Ningbo Water Meter (Group) Co (SHSE:603700), the current ROE % is 2.64% 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 Water Meter (Group) Co (SHSE:603700) Overvalued in 2026?
Based on GuruFocus' analysis, Ningbo Water Meter (Group) Co stock appears to be undervalued.
The current stock price of ¥11.06 is trading 22.3% below its estimated GF Value™ of ¥14.24.
GuruFocus considers Ningbo Water Meter (Group) Co to be Modestly Undervalued.
Key valuation signals for SHSE:603700:
ROE %: 2.64% (85% below median its 10-year median of 17.85)
GF Value™: ¥14.24 vs. price of ¥11.06 (22.3% below fair value)
Industry Position: 55.3% below the Industrial Products median (#1675 of 3005)
No single metric tells the full story. See the SHSE:603700 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ningbo Water Meter (Group) Co Ltd is engaged in manufacturing water meters. The product portfolio includes liquid sealed water meters, volumetric rotary piston water meter, manual batch control water meter, multi-jet dry type water meter and others.
71GF Score
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