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Xinhuanet CoSHSE:603888 +3.29%85 ROE % is 4.16% as of Mar. 2026, which is 52% below its 10-year median of 8.61. GuruFocus rates SHSE:603888 with a GF Score™ of 85/100 and a GF Value™ of ¥18.22 (Fairly Valued). The stock has 2 warning signs investors should review. Among 534 Interactive Media companies, Xinhuanet Co ranks better than 65.73% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Xinhuanet Co's annualized net income for the quarter that ended in Mar. 2026 was ¥157 Mil. Xinhuanet Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥3,784 Mil. Therefore, Xinhuanet Co's annualized ROE % for the quarter that ended in Mar. 2026 was 4.16%.
The historical rank and industry rank for Xinhuanet Co's ROE % or its related term are showing as below:
SHSE:603888'
s ROE % Range Over the Past 10 Years
Min: 5.54 Med: 8.61 Max: 16.37
Current: 8.96
During the past 13 years, Xinhuanet Co's highest ROE % was 16.37%. The lowest was 5.54%. And the median was 8.61%.
SHSE:603888's ROE % is ranked better than 65.73% of 534
companies
in the Interactive Media industry
Industry Median: 2
vs SHSE:603888: 8.96
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.
Xinhuanet Co ROE % Related Terms
Xinhuanet Co ROE % Historical Data
* Premium members only.
The historical data trend for Xinhuanet Co's ROE % can be seen below:
* 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.
SHSE:603888 vs GOOGL, META, SPOT: ROE % Comparison
For the Internet Content & Information subindustry, Xinhuanet 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.
Xinhuanet Co ROE % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Xinhuanet Co's ROE % distribution charts can be found below:
* The bar in red indicates where Xinhuanet 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.
Xinhuanet Co (SHSE:603888) has a ROE % of 4.16% 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 Xinhuanet Co and its competitors. This is 52% below median its historical median of 8.61. Over the past decade, Xinhuanet Co's ROE % has ranged from 5.54 to 16.37. According to the industry distribution chart, Xinhuanet Co ranks #183 out of 534 companies in the Interactive Media industry, placing it in the top 34.3%.
Is Xinhuanet Co's ROE % too high?
Xinhuanet Co's current ROE % of 4.16% is 52% below median its 10-year median of 8.61. Over the past 10 years, this metric has ranged from a low of 5.54 to a high of 16.37. The Interactive Media industry median ROE % is 2.00. Xinhuanet Co's value of 4.16% is 108% above this industry median. Based on the distribution chart, Xinhuanet Co ranks #183 out of 534 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Xinhuanet Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Xinhuanet Co's ROE % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Xinhuanet Co ranks #183 out of 534 companies for ROE %. This puts Xinhuanet Co in the upper half of its industry. The industry median ROE % is 2.00. Xinhuanet Co's value of 4.16% is 108% above this benchmark. Historically, Xinhuanet Co's own ROE % has ranged from 5.54 to 16.37 over the past decade. While the company's 10-year median is 8.61 vs. the industry median of 2.00, Xinhuanet 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 an Interactive Media company?
The median ROE % among Interactive Media companies is 2.00, based on 534 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. Xinhuanet Co's current ROE % of 4.16% is 108% 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 Xinhuanet Co and its competitors. For the Interactive Media industry, the median ROE % is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xinhuanet Co's current ROE % is 4.16%, which is 52% below median its own 10-year median of 8.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xinhuanet Co stock overvalued right now?
Based on GuruFocus' analysis, Xinhuanet Co (SHSE:603888) is currently considered Fairly Valued. The stock's GF Value™ is ¥18.22, compared to a current price of ¥16.62 — trading 8.8% below its estimated fair value. The current ROE % is 4.16%, which is 52% below median its 10-year median of 8.61 and 108% above the Interactive Media industry median of 2.00. Xinhuanet Co's overall GF Score™ is 85/100 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 Xinhuanet Co (SHSE:603888), the current ROE % is 4.16% 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 Xinhuanet Co (SHSE:603888) Overvalued in 2026?
Based on GuruFocus' analysis, Xinhuanet Co stock appears to be undervalued.
The current stock price of ¥16.62 is trading 8.8% below its estimated GF Value™ of ¥18.22.
GuruFocus considers Xinhuanet Co to be Fairly Valued.
Key valuation signals for SHSE:603888:
ROE %: 4.16% (52% below median its 10-year median of 8.61)
GF Value™: ¥18.22 vs. price of ¥16.62 (8.8% below fair value)
Industry Position: 108% above the Interactive Media median (#183 of 534)
No single metric tells the full story. See the SHSE:603888 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xinhuanet Co Ltd operates in the internet content and information industry. It owns and manages a news information service portals in China. Its business activities are divided into the following: online advertising, information services, website construction, technical services and mobile internet. Its online advertising business provides full-screen shrink, rear projection, streaming media and other forms of advertising. Its information services include multimedia information services and data intelligent analysis services. The website construction and technical service business engage in website construction, content management and operation. The mobile internet business provides mobile internet content information services through text, images, voice, video and other forms.
85GF Score
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