Aofu Environmental Technology Co (SHSE:688021) ROE %: 4.98% (As of Mar. 2026) — 11% Below Median

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SHSE:688021 Aofu Environmental Technology Co Ltd SHSE:688021
78 GF Score
Price ¥17.84
GF Value ¥20.83
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Aofu Environmental Technology Co ROE %?

Aofu Environmental Technology Co SHSE:688021 -1.60% 78 ROE % is 4.98% as of Mar. 2026, which is 11% below its 10-year median of 5.60. GuruFocus rates SHSE:688021 with a GF Score™ of 78/100 and a GF Value™ of ¥20.83 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,582 Chemicals companies, Aofu Environmental Technology Co ranks worse than 61.13% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Aofu Environmental Technology Co's annualized net income for the quarter that ended in Mar. 2026 was ¥43.7 Mil. Aofu Environmental Technology Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥877.9 Mil. Therefore, Aofu Environmental Technology Co's annualized ROE % for the quarter that ended in Mar. 2026 was 4.98%.

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

SHSE:688021' s ROE % Range Over the Past 10 Years
Min: -4.96   Med: 5.6   Max: 25.48
Current: 3.34

During the past 10 years, Aofu Environmental Technology Co's highest ROE % was 25.48%. The lowest was -4.96%. And the median was 5.60%.

SHSE:688021's ROE % is ranked worse than
61.13% of 1582 companies
in the Chemicals industry
Industry Median: 5.28 vs SHSE:688021: 3.34

Aofu Environmental Technology Co  (SHSE:688021) 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
=43.712/877.913
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(43.712 / 392.82)*(392.82 / 1165.634)*(1165.634 / 877.913)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.13 %*0.337*1.3277
=ROA %*Equity Multiplier
=3.75 %*1.3277
=4.98 %

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
=43.712/877.913
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (43.712 / 52.256) * (52.256 / 71.796) * (71.796 / 392.82) * (392.82 / 1165.634) * (1165.634 / 877.913)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8365 * 0.7278 * 18.28 % * 0.337 * 1.3277
=4.98 %

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.


Aofu Environmental Technology Co ROE % Related Terms


Aofu Environmental Technology Co ROE % Historical Data

* Premium members only.

The historical data trend for Aofu Environmental Technology 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.

Aofu Environmental Technology Co ROE % Chart

Aofu Environmental Technology Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.18 -0.84 -0.86 -4.96 1.70

Aofu Environmental Technology 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 -1.53 0.40 1.10 6.83 4.98

SHSE:688021 vs LIN, SHW, ECL: ROE % Comparison

For the Specialty Chemicals subindustry, Aofu Environmental Technology 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.


Aofu Environmental Technology Co ROE % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Aofu Environmental Technology Co's ROE % distribution charts can be found below:

* The bar in red indicates where Aofu Environmental Technology Co's ROE % falls into.


SHSE:688021
78GF Score
Aofu Environmental Technology Co Ltd SHSE:688021
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Aofu Environmental Technology Co ROE % Calculation

Aofu Environmental Technology 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 )
=14.71/( (857.739+872.449)/ 2 )
=14.71/865.094
=1.70 %

Aofu Environmental Technology 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 )
=43.712/( (872.449+883.377)/ 2 )
=43.712/877.913
=4.98 %

* 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 4.98% mean?
Aofu Environmental Technology Co (SHSE:688021) has a ROE % of 4.98% 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 Aofu Environmental Technology Co and its competitors. This is 11% below median its historical median of 5.60. According to the industry distribution chart, Aofu Environmental Technology Co ranks #967 out of 1582 companies in the Chemicals industry, placing it in the top 61.1%.
Is Aofu Environmental Technology Co's ROE % too high?
Aofu Environmental Technology Co's current ROE % of 4.98% is 11% below median its 10-year median of 5.60. The Chemicals industry median ROE % is 5.28. Aofu Environmental Technology Co's value of 4.98% is 5.7% below this industry median. Based on the distribution chart, Aofu Environmental Technology Co ranks #967 out of 1582 companies in the Chemicals industry, which is below the industry midpoint. Overall, Aofu Environmental Technology Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aofu Environmental Technology Co's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Aofu Environmental Technology Co ranks #967 out of 1582 companies for ROE %. This places Aofu Environmental Technology Co in the lower half of its industry. The industry median ROE % is 5.28. Aofu Environmental Technology Co's value of 4.98% is 5.7% below this benchmark. While the company's 10-year median is 5.60 vs. the industry median of 5.28, Aofu Environmental Technology 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 Chemicals company?
The median ROE % among Chemicals companies is 5.28, based on 1,582 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. Aofu Environmental Technology Co's current ROE % of 4.98% is 5.7% 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 Aofu Environmental Technology Co and its competitors. For the Chemicals industry, the median ROE % is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aofu Environmental Technology Co's current ROE % is 4.98%, which is 11% below median its own 10-year median of 5.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aofu Environmental Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Aofu Environmental Technology Co (SHSE:688021) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥20.83, compared to a current price of ¥17.84 — trading 14.4% below its estimated fair value. The current ROE % is 4.98%, which is 11% below median its 10-year median of 5.60 and 5.7% below the Chemicals industry median of 5.28. Aofu Environmental Technology Co's overall GF Score™ is 78/100 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 Aofu Environmental Technology Co (SHSE:688021), the current ROE % is 4.98% 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 Aofu Environmental Technology Co (SHSE:688021) Overvalued in 2026?

Based on GuruFocus' analysis, Aofu Environmental Technology Co stock appears to be undervalued. The current stock price of ¥17.84 is trading 14.4% below its estimated GF Value™ of ¥20.83. GuruFocus considers Aofu Environmental Technology Co to be Modestly Undervalued.

Key valuation signals for SHSE:688021:

  • ROE %: 4.98% (11% below median its 10-year median of 5.60)
  • GF Value™: ¥20.83 vs. price of ¥17.84 (14.4% below fair value)
  • GF Score™: 78/100 with 3 warning signs
  • Industry Position: 5.7% below the Chemicals median (#967 of 1582)

No single metric tells the full story. See the SHSE:688021 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Aofu Environmental Technology Co Business Description

Address East side of south of Fumin Road, Economic Development Zone, Linyi County, Shandong Province, Dezhou, CHN, 251500
Aofu Environmental Technology Co Ltd is a China based company engaged in the manufacturing of ceramic products.
78GF Score

Get the complete analysis for SHSE:688021

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

¥17.84
Price
¥20.83
GF Value