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SHSE:688523's ROE % is ranked worse than 60% of 350
companies
in the Aerospace & Defense industry
Industry Median: 5.685
vs SHSE:688523: 2.35
Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) 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:
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.
Hunan Aerospace Huanyu Communication Technology Co ROE % Related Terms
Hunan Aerospace Huanyu Communication Technology Co ROE % Historical Data
* 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.
Hunan Aerospace Huanyu Communication Technology Co ROE % Chart
Hunan Aerospace Huanyu Communication Technology Co Annual Data
* 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.
Hunan Aerospace Huanyu Communication Technology Co ROE % vs Aerospace & Defense Industry
* 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.
Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) has a ROE % of 0.36% 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 Hunan Aerospace Huanyu Communication Technology Co and its competitors. This is 98% below median its historical median of 14.67. Over the past decade, Hunan Aerospace Huanyu Communication Technology Co's ROE % has ranged from 2.35 to 18.80. According to the industry distribution chart, Hunan Aerospace Huanyu Communication Technology Co ranks #210 out of 350 companies in the Aerospace & Defense industry, placing it in the top 60%.
Is Hunan Aerospace Huanyu Communication Technology Co's ROE % too high?
Hunan Aerospace Huanyu Communication Technology Co's current ROE % of 0.36% is 98% below median its 10-year median of 14.67. Over the past 10 years, this metric has ranged from a low of 2.35 to a high of 18.80. The Aerospace & Defense industry median ROE % is 5.69. Hunan Aerospace Huanyu Communication Technology Co's value of 0.36% is 93.7% below this industry median. Based on the distribution chart, Hunan Aerospace Huanyu Communication Technology Co ranks #210 out of 350 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Hunan Aerospace Huanyu Communication Technology Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Aerospace Huanyu Communication Technology Co's ROE % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Hunan Aerospace Huanyu Communication Technology Co ranks #210 out of 350 companies for ROE %. This places Hunan Aerospace Huanyu Communication Technology Co in the lower half of its industry. The industry median ROE % is 5.69. Hunan Aerospace Huanyu Communication Technology Co's value of 0.36% is 93.7% below this benchmark. Historically, Hunan Aerospace Huanyu Communication Technology Co's own ROE % has ranged from 2.35 to 18.80 over the past decade. While the company's 10-year median is 14.67 vs. the industry median of 5.69, Hunan Aerospace Huanyu Communication 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 an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.69, based on 350 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. Hunan Aerospace Huanyu Communication Technology Co's current ROE % of 0.36% is 93.7% 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 Hunan Aerospace Huanyu Communication Technology Co and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Aerospace Huanyu Communication Technology Co's current ROE % is 0.36%, which is 98% below median its own 10-year median of 14.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Aerospace Huanyu Communication Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥27.32, compared to a current price of ¥43.04 — trading 57.5% above its estimated fair value. The current ROE % is 0.36%, which is 98% below median its 10-year median of 14.67 and 93.7% below the Aerospace & Defense industry median of 5.69. Hunan Aerospace Huanyu Communication Technology Co's overall GF Score™ is 73/100 with 9 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 Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523), the current ROE % is 0.36% 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 Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Aerospace Huanyu Communication Technology Co stock appears to be overvalued.
The current stock price of ¥43.04 is trading 57.5% above its estimated GF Value™ of ¥27.32.
GuruFocus considers Hunan Aerospace Huanyu Communication Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:688523:
ROE %: 0.36% (98% below median its 10-year median of 14.67)
GF Value™: ¥27.32 vs. price of ¥43.04 (57.5% above fair value)
Industry Position: 93.7% below the Aerospace & Defense median (#210 of 350)
No single metric tells the full story. See the SHSE:688523 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Aerospace Huanyu Communication Technology Co Business Description
Hunan Aerospace Huanyu Communication Technology Co Ltd is mainly engaged in the research, development, manufacturing, and service of spaceborne high-end microwave communication systems, satellite communication systems, aerospace technology equipment, and high-end composite material parts and components. The company is committed to providing product support and engineering application services for majorily aerospace host units.
73GF Score
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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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