China Railway High-speed Electrification Equipment Co (SHSE:688285) ROE %: 2.89% (As of Mar. 2026) — 74% Below Median

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SHSE:688285 China Railway High-speed Electrification Equipment Co Ltd SHSE:688285
70 GF Score
Price ¥6.98
GF Value ¥8.85
Valuation Modestly Undervalued
! 5 Warning Signs
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What is China Railway High-speed Electrification Equipment Co ROE %?

China Railway High-speed Electrification Equipment Co SHSE:688285 -2.79% 70 ROE % is 2.89% as of Mar. 2026, which is 74% below its 10-year median of 11.10. GuruFocus rates SHSE:688285 with a GF Score™ of 70/100 and a GF Value™ of ¥8.85 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 987 Transportation companies, China Railway High-speed Electrification Equipment Co ranks worse than 69.91% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. China Railway High-speed Electrification Equipment Co's annualized net income for the quarter that ended in Mar. 2026 was ¥49 Mil. China Railway High-speed Electrification Equipment Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥1,696 Mil. Therefore, China Railway High-speed Electrification Equipment Co's annualized ROE % for the quarter that ended in Mar. 2026 was 2.89%.

The historical rank and industry rank for China Railway High-speed Electrification Equipment Co's ROE % or its related term are showing as below:

SHSE:688285' s ROE % Range Over the Past 10 Years
Min: 2.77   Med: 11.1   Max: 25.94
Current: 3.51

During the past 10 years, China Railway High-speed Electrification Equipment Co's highest ROE % was 25.94%. The lowest was 2.77%. And the median was 11.10%.

SHSE:688285's ROE % is ranked worse than
69.91% of 987 companies
in the Transportation industry
Industry Median: 7.59 vs SHSE:688285: 3.51

China Railway High-speed Electrification Equipment Co  (SHSE:688285) 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
=49.088/1696.211
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(49.088 / 1117.92)*(1117.92 / 3099.9525)*(3099.9525 / 1696.211)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.39 %*0.3606*1.8276
=ROA %*Equity Multiplier
=1.58 %*1.8276
=2.89 %

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
=49.088/1696.211
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (49.088 / 82.996) * (82.996 / 106.52) * (106.52 / 1117.92) * (1117.92 / 3099.9525) * (3099.9525 / 1696.211)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5915 * 0.7792 * 9.53 % * 0.3606 * 1.8276
=2.89 %

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.


China Railway High-speed Electrification Equipment Co ROE % Related Terms


China Railway High-speed Electrification Equipment Co ROE % Historical Data

* Premium members only.

The historical data trend for China Railway High-speed Electrification Equipment 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.

China Railway High-speed Electrification Equipment Co ROE % Chart

China Railway High-speed Electrification Equipment 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 12.94 9.25 3.45 2.77 3.08

China Railway High-speed Electrification Equipment 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 1.19 5.67 1.89 3.60 2.89

SHSE:688285 vs UNP, CSX, NSC: ROE % Comparison

For the Railroads subindustry, China Railway High-speed Electrification Equipment 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.


China Railway High-speed Electrification Equipment Co ROE % vs Transportation Industry

For the Transportation industry and Industrials sector, China Railway High-speed Electrification Equipment Co's ROE % distribution charts can be found below:

* The bar in red indicates where China Railway High-speed Electrification Equipment Co's ROE % falls into.


SHSE:688285
70GF Score
China Railway High-speed Electrification Equipment Co Ltd SHSE:688285
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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China Railway High-speed Electrification Equipment Co ROE % Calculation

China Railway High-speed Electrification Equipment 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 )
=51.461/( (1646.148+1690.075)/ 2 )
=51.461/1668.1115
=3.08 %

China Railway High-speed Electrification Equipment 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 )
=49.088/( (1690.075+1702.347)/ 2 )
=49.088/1696.211
=2.89 %

* 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 2.89% mean?
China Railway High-speed Electrification Equipment Co (SHSE:688285) has a ROE % of 2.89% 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 China Railway High-speed Electrification Equipment Co and its competitors. This is 74% below median its historical median of 11.10. Over the past decade, China Railway High-speed Electrification Equipment Co's ROE % has ranged from 2.77 to 25.94. According to the industry distribution chart, China Railway High-speed Electrification Equipment Co ranks #690 out of 987 companies in the Transportation industry, placing it in the top 69.9%.
Is China Railway High-speed Electrification Equipment Co's ROE % too high?
China Railway High-speed Electrification Equipment Co's current ROE % of 2.89% is 74% below median its 10-year median of 11.10. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 25.94. The Transportation industry median ROE % is 7.59. China Railway High-speed Electrification Equipment Co's value of 2.89% is 61.9% below this industry median. Based on the distribution chart, China Railway High-speed Electrification Equipment Co ranks #690 out of 987 companies in the Transportation industry, which is below the industry midpoint. Overall, China Railway High-speed Electrification Equipment Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway High-speed Electrification Equipment Co's ROE % compare to UNP and CSX?
According to the Transportation industry distribution chart, China Railway High-speed Electrification Equipment Co ranks #690 out of 987 companies for ROE %. This places China Railway High-speed Electrification Equipment Co in the lower half of its industry. The industry median ROE % is 7.59. China Railway High-speed Electrification Equipment Co's value of 2.89% is 61.9% below this benchmark. Historically, China Railway High-speed Electrification Equipment Co's own ROE % has ranged from 2.77 to 25.94 over the past decade. While the company's 10-year median is 11.10 vs. the industry median of 7.59, China Railway High-speed Electrification Equipment 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 Transportation company?
The median ROE % among Transportation companies is 7.59, based on 987 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. China Railway High-speed Electrification Equipment Co's current ROE % of 2.89% is 61.9% 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 China Railway High-speed Electrification Equipment Co and its competitors. For the Transportation industry, the median ROE % is 7.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway High-speed Electrification Equipment Co's current ROE % is 2.89%, which is 74% below median its own 10-year median of 11.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway High-speed Electrification Equipment Co stock overvalued right now?
Based on GuruFocus' analysis, China Railway High-speed Electrification Equipment Co (SHSE:688285) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥8.85, compared to a current price of ¥6.98 — trading 21.1% below its estimated fair value. The current ROE % is 2.89%, which is 74% below median its 10-year median of 11.10 and 61.9% below the Transportation industry median of 7.59. China Railway High-speed Electrification Equipment Co's overall GF Score™ is 70/100 with 5 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 China Railway High-speed Electrification Equipment Co (SHSE:688285), the current ROE % is 2.89% 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 China Railway High-speed Electrification Equipment Co (SHSE:688285) Overvalued in 2026?

Based on GuruFocus' analysis, China Railway High-speed Electrification Equipment Co stock appears to be undervalued. The current stock price of ¥6.98 is trading 21.1% below its estimated GF Value™ of ¥8.85. GuruFocus considers China Railway High-speed Electrification Equipment Co to be Modestly Undervalued.

Key valuation signals for SHSE:688285:

  • ROE %: 2.89% (74% below median its 10-year median of 11.10)
  • GF Value™: ¥8.85 vs. price of ¥6.98 (21.1% below fair value)
  • GF Score™: 70/100 with 5 warning signs
  • Industry Position: 61.9% below the Transportation median (#690 of 987)

No single metric tells the full story. See the SHSE:688285 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China Railway High-speed Electrification Equipment Co Business Description

Address No. 196, Gaoxin Avenue, High-tech Development Zone, Shaanxi Province, Baoji, CHN, 721006
China Railway High-speed Electrification Equipment Co Ltd is engaged in the research and development, design, manufacturing and sales of electrified railway catenary products, urban rail transit power supply equipment and off-track products.
70GF Score

Get the complete analysis for SHSE:688285

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

¥6.98
Price
¥8.85
GF Value