Lutian Machinery Co (SHSE:605259) ROE %: 9.66% (As of Mar. 2026) — 32% Below Median


SHSE:605259 Lutian Machinery Co Ltd SHSE:605259
87 GF Score
Price ¥17.83
GF Value ¥23.51
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Lutian Machinery Co ROE %?

Lutian Machinery Co SHSE:605259 -1.93% 87 ROE % is 9.66% as of Mar. 2026, which is 32% below its 10-year median of 14.20. GuruFocus rates SHSE:605259 with a GF Score™ of 87/100 and a GF Value™ of ¥23.51 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 3,001 Industrial Products companies, Lutian Machinery Co ranks better than 77.81% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lutian Machinery Co's annualized net income for the quarter that ended in Mar. 2026 was ¥180 Mil. Lutian Machinery Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥1,862 Mil. Therefore, Lutian Machinery Co's annualized ROE % for the quarter that ended in Mar. 2026 was 9.66%.

The historical rank and industry rank for Lutian Machinery Co's ROE % or its related term are showing as below:

SHSE:605259' s ROE % Range Over the Past 10 Years
Min: 8.03   Med: 14.2   Max: 19.14
Current: 12.94

During the past 9 years, Lutian Machinery Co's highest ROE % was 19.14%. The lowest was 8.03%. And the median was 14.20%.

SHSE:605259's ROE % is ranked better than
77.81% of 3001 companies
in the Industrial Products industry
Industry Median: 5.85 vs SHSE:605259: 12.94

Lutian Machinery Co  (SHSE:605259) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=179.836/1862.033
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(179.836 / 2538.92)*(2538.92 / 2773.536)*(2773.536 / 1862.033)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.08 %*0.9154*1.4895
=ROA %*Equity Multiplier
=6.48 %*1.4895
=9.66 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=179.836/1862.033
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (179.836 / 179.136) * (179.136 / 212.828) * (212.828 / 2538.92) * (2538.92 / 2773.536) * (2773.536 / 1862.033)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0039 * 0.8417 * 8.38 % * 0.9154 * 1.4895
=9.66 %

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.


Lutian Machinery Co ROE % Related Terms


Lutian Machinery Co ROE % Historical Data

* Premium members only.

The historical data trend for Lutian Machinery 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.

Lutian Machinery Co ROE % Chart

Lutian Machinery Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only 15.79 15.20 11.79 11.39 13.89

Lutian Machinery Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.31 19.05 13.57 9.95 9.66

SHSE:605259 vs GEV, ETN, PH: ROE % Comparison

For the Specialty Industrial Machinery subindustry, Lutian Machinery 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.


Lutian Machinery Co ROE % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Lutian Machinery Co's ROE % distribution charts can be found below:

* The bar in red indicates where Lutian Machinery Co's ROE % falls into.


SHSE:605259
87GF Score
Lutian Machinery Co Ltd SHSE:605259
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Lutian Machinery Co ROE % Calculation

Lutian Machinery Co's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=245.527/( (1696.988+1839.553)/ 2 )
=245.527/1768.2705
=13.89 %

Lutian Machinery Co's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=179.836/( (1839.553+1884.513)/ 2 )
=179.836/1862.033
=9.66 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 9.66% mean?
Lutian Machinery Co (SHSE:605259) has a ROE % of 9.66% 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 Lutian Machinery Co and its competitors. This is 32% below median its historical median of 14.20. Over the past decade, Lutian Machinery Co's ROE % has ranged from 8.03 to 19.14. According to the industry distribution chart, Lutian Machinery Co ranks #666 out of 3001 companies in the Industrial Products industry, placing it in the top 22.2%.
Is Lutian Machinery Co's ROE % too high?
Lutian Machinery Co's current ROE % of 9.66% is 32% below median its 10-year median of 14.20. Over the past 10 years, this metric has ranged from a low of 8.03 to a high of 19.14. The Industrial Products industry median ROE % is 5.85. Lutian Machinery Co's value of 9.66% is 65.1% above this industry median. Based on the distribution chart, Lutian Machinery Co ranks #666 out of 3001 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Lutian Machinery Co has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lutian Machinery Co's ROE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Lutian Machinery Co ranks #666 out of 3001 companies for ROE %. This places Lutian Machinery Co in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 5.85. Lutian Machinery Co's value of 9.66% is 65.1% above this benchmark. Historically, Lutian Machinery Co's own ROE % has ranged from 8.03 to 19.14 over the past decade. While the company's 10-year median is 14.20 vs. the industry median of 5.85, Lutian Machinery 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 Industrial Products company?
The median ROE % among Industrial Products companies is 5.85, based on 3,001 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. Lutian Machinery Co's current ROE % of 9.66% is 65.1% 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 Lutian Machinery Co and its competitors. For the Industrial Products industry, the median ROE % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lutian Machinery Co's current ROE % is 9.66%, which is 32% below median its own 10-year median of 14.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lutian Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Lutian Machinery Co (SHSE:605259) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥23.51, compared to a current price of ¥17.83 — trading 24.2% below its estimated fair value. The current ROE % is 9.66%, which is 32% below median its 10-year median of 14.20 and 65.1% above the Industrial Products industry median of 5.85. Lutian Machinery Co's overall GF Score™ is 87/100 with 4 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 Lutian Machinery Co (SHSE:605259), the current ROE % is 9.66% 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 Lutian Machinery Co (SHSE:605259) Overvalued in 2026?

Based on GuruFocus' analysis, Lutian Machinery Co stock appears to be undervalued. The current stock price of ¥17.83 is trading 24.2% below its estimated GF Value™ of ¥23.51. GuruFocus considers Lutian Machinery Co to be Modestly Undervalued.

Key valuation signals for SHSE:605259:

  • ROE %: 9.66% (32% below median its 10-year median of 14.20)
  • GF Value™: ¥23.51 vs. price of ¥17.83 (24.2% below fair value)
  • GF Score™: 87/100 with 4 warning signs
  • Industry Position: 65.1% above the Industrial Products median (#666 of 3001)

No single metric tells the full story. See the SHSE:605259 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lutian Machinery Co Business Description

Address No. 1, Lvtian Avenue, Hengjie Town, Luqiao District, Zhejiang Province, Taizhou, CHN, 318056
Lutian Machinery Co Ltd research and development, production and sales of general power machinery products mainly including generator sets, water pump units and engines and high-pressure cleaner products.
87GF Score

Get the complete analysis for SHSE:605259

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥17.83
Price
¥23.51
GF Value