Sokan New Materials Group Co (SHSE:688157) ROE %: -2.03% (As of Mar. 2026)

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SHSE:688157 Sokan New Materials Group Co Ltd SHSE:688157
72 GF Score
Price ¥17.58
GF Value ¥34.67
Valuation Possible Value Trap
! 10 Warning Signs
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What is Sokan New Materials Group Co ROE %?

Sokan New Materials Group Co SHSE:688157 +6.93% 72 ROE % is -2.03% as of Mar. 2026. GuruFocus rates SHSE:688157 with a GF Score™ of 72/100 and a GF Value™ of ¥34.67 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 1,583 Chemicals companies, Sokan New Materials Group Co ranks worse than 70.5% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sokan New Materials Group Co's annualized net income for the quarter that ended in Mar. 2026 was ¥-27.4 Mil. Sokan New Materials Group Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥1,349.4 Mil. Therefore, Sokan New Materials Group Co's annualized ROE % for the quarter that ended in Mar. 2026 was -2.03%.

The historical rank and industry rank for Sokan New Materials Group Co's ROE % or its related term are showing as below:

SHSE:688157' s ROE % Range Over the Past 10 Years
Min: 0.71   Med: 7.66   Max: 26.22
Current: 0.71

During the past 10 years, Sokan New Materials Group Co's highest ROE % was 26.22%. The lowest was 0.71%. And the median was 7.66%.

SHSE:688157's ROE % is ranked worse than
70.5% of 1583 companies
in the Chemicals industry
Industry Median: 5.26 vs SHSE:688157: 0.71

Sokan New Materials Group Co  (SHSE:688157) 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
=-27.352/1349.44
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-27.352 / 499.924)*(499.924 / 1725.8645)*(1725.8645 / 1349.44)
=Net Margin %*Asset Turnover*Equity Multiplier
=-5.47 %*0.2897*1.2789
=ROA %*Equity Multiplier
=-1.58 %*1.2789
=-2.03 %

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
=-27.352/1349.44
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-27.352 / -35.516) * (-35.516 / -46.2) * (-46.2 / 499.924) * (499.924 / 1725.8645) * (1725.8645 / 1349.44)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7701 * 0.7687 * -9.24 % * 0.2897 * 1.2789
=-2.03 %

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.


Sokan New Materials Group Co ROE % Related Terms


Sokan New Materials Group Co ROE % Historical Data

* Premium members only.

The historical data trend for Sokan New Materials Group 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.

Sokan New Materials Group Co ROE % Chart

Sokan New Materials Group 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 8.55 6.77 6.39 6.61 1.51

Sokan New Materials Group 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 1.15 2.57 3.87 -1.48 -2.03

SHSE:688157 vs LIN, SHW, ECL: ROE % Comparison

For the Specialty Chemicals subindustry, Sokan New Materials 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.


Sokan New Materials Group Co ROE % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sokan New Materials Group Co's ROE % distribution charts can be found below:

* The bar in red indicates where Sokan New Materials Group Co's ROE % falls into.


SHSE:688157
72GF Score
Sokan New Materials Group Co Ltd SHSE:688157
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Sokan New Materials Group Co ROE % Calculation

Sokan New Materials Group 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 )
=20.162/( (1321.777+1351.903)/ 2 )
=20.162/1336.84
=1.51 %

Sokan New Materials Group 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 )
=-27.352/( (1351.903+1346.977)/ 2 )
=-27.352/1349.44
=-2.03 %

* 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 -2.03% mean?
Sokan New Materials Group Co (SHSE:688157) has a ROE % of -2.03% 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 Sokan New Materials Group Co and its competitors. Over the past decade, Sokan New Materials Group Co's ROE % has ranged from 0.71 to 26.22. According to the industry distribution chart, Sokan New Materials Group Co ranks #1116 out of 1583 companies in the Chemicals industry, placing it in the top 70.5%.
Is Sokan New Materials Group Co's ROE % too high?
Sokan New Materials Group Co's current ROE % is -2.03%. Over the past 10 years, this metric has ranged from a low of 0.71 to a high of 26.22. Based on the distribution chart, Sokan New Materials Group Co ranks #1116 out of 1583 companies in the Chemicals industry, which is below the industry midpoint. Overall, Sokan New Materials Group Co has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sokan New Materials Group Co's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sokan New Materials Group Co ranks #1116 out of 1583 companies for ROE %. This places Sokan New Materials Group Co in the lower half of its industry. The industry median ROE % is 5.26. Historically, Sokan New Materials Group Co's own ROE % has ranged from 0.71 to 26.22 over the past decade. 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 5.26, based on 1,583 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. 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 Sokan New Materials Group Co and its competitors. For the Chemicals industry, the median ROE % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sokan New Materials Group Co's current ROE % is -2.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sokan New Materials Group Co stock overvalued right now?
Based on GuruFocus' analysis, Sokan New Materials Group Co (SHSE:688157) is currently considered Possible Value Trap. The stock's GF Value™ is ¥34.67, compared to a current price of ¥17.58 — trading 49.3% below its estimated fair value. The current ROE % is -2.03%. Sokan New Materials Group Co's overall GF Score™ is 72/100 with 10 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 Sokan New Materials Group Co (SHSE:688157), the current ROE % is -2.03% 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 Sokan New Materials Group Co (SHSE:688157) Overvalued in 2026?

Based on GuruFocus' analysis, Sokan New Materials Group Co stock appears to be undervalued. The current stock price of ¥17.58 is trading 49.3% below its estimated GF Value™ of ¥34.67. GuruFocus considers Sokan New Materials Group Co to be Possible Value Trap.

Key valuation signals for SHSE:688157:

  • ROE %: -2.03%
  • GF Value™: ¥34.67 vs. price of ¥17.58 (49.3% below fair value)
  • GF Score™: 72/100 with 10 warning signs

No single metric tells the full story. See the SHSE:688157 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sokan New Materials Group Co Business Description

Address No.777, Sanhuan North Road, Ningxiang Economic and Technological Development Zone, Hunan Province, Ningxiang, CHN, 410600
Sokan New Materials Group Co Ltd is engaged in the production and sales of new functional coating materials such as paints and special inks. It provides services to market segments such as mobile phones and related accessories, notebook computers and related accessories, wearable devices, and smart home appliances, passenger cars.
72GF Score

Get the complete analysis for SHSE:688157

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

¥17.58
Price
¥34.67
GF Value