Hunan Warrant Pharmaceutical Co (SHSE:688799) ROE %: 5.22% (As of Mar. 2026) — 62% Below Median


SHSE:688799 Hunan Warrant Pharmaceutical Co Ltd SHSE:688799
83 GF Score
Price ¥44.87
GF Value ¥33.09
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Hunan Warrant Pharmaceutical Co ROE %?

Hunan Warrant Pharmaceutical Co SHSE:688799 -4.53% 83 ROE % is 5.22% as of Mar. 2026, which is 62% below its 10-year median of 13.87. GuruFocus rates SHSE:688799 with a GF Score™ of 83/100 and a GF Value™ of ¥33.09 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 933 Drug Manufacturers companies, Hunan Warrant Pharmaceutical Co ranks better than 68.7% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hunan Warrant Pharmaceutical Co's annualized net income for the quarter that ended in Mar. 2026 was ¥108 Mil. Hunan Warrant Pharmaceutical Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥2,059 Mil. Therefore, Hunan Warrant Pharmaceutical Co's annualized ROE % for the quarter that ended in Mar. 2026 was 5.22%.

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

SHSE:688799' s ROE % Range Over the Past 10 Years
Min: 7.17   Med: 13.87   Max: 23.85
Current: 11.42

During the past 12 years, Hunan Warrant Pharmaceutical Co's highest ROE % was 23.85%. The lowest was 7.17%. And the median was 13.87%.

SHSE:688799's ROE % is ranked better than
68.7% of 933 companies
in the Drug Manufacturers industry
Industry Median: 5.89 vs SHSE:688799: 11.42

Hunan Warrant Pharmaceutical Co  (SHSE:688799) 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
=107.508/2059.258
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(107.508 / 1298.184)*(1298.184 / 3146.909)*(3146.909 / 2059.258)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.28 %*0.4125*1.5282
=ROA %*Equity Multiplier
=3.42 %*1.5282
=5.22 %

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
=107.508/2059.258
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (107.508 / 132.756) * (132.756 / 143.016) * (143.016 / 1298.184) * (1298.184 / 3146.909) * (3146.909 / 2059.258)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8098 * 0.9283 * 11.02 % * 0.4125 * 1.5282
=5.22 %

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 Warrant Pharmaceutical Co ROE % Related Terms


Hunan Warrant Pharmaceutical Co ROE % Historical Data

* Premium members only.

The historical data trend for Hunan Warrant Pharmaceutical 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.

Hunan Warrant Pharmaceutical Co ROE % Chart

Hunan Warrant Pharmaceutical Co Annual Data
Trend Dec15 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.01 11.89 12.73 9.32 12.39

Hunan Warrant Pharmaceutical 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 9.02 6.48 28.38 6.18 5.22

SHSE:688799 vs ZTS, UTHR: ROE % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Hunan Warrant Pharmaceutical 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.


Hunan Warrant Pharmaceutical Co ROE % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Hunan Warrant Pharmaceutical Co's ROE % distribution charts can be found below:

* The bar in red indicates where Hunan Warrant Pharmaceutical Co's ROE % falls into.


SHSE:688799
83GF Score
Hunan Warrant Pharmaceutical Co Ltd SHSE:688799
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hunan Warrant Pharmaceutical Co ROE % Calculation

Hunan Warrant Pharmaceutical 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 )
=238.279/( (1803.407+2042.685)/ 2 )
=238.279/1923.046
=12.39 %

Hunan Warrant Pharmaceutical 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 )
=107.508/( (2042.685+2075.831)/ 2 )
=107.508/2059.258
=5.22 %

* 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 5.22% mean?
Hunan Warrant Pharmaceutical Co (SHSE:688799) has a ROE % of 5.22% 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 Warrant Pharmaceutical Co and its competitors. This is 62% below median its historical median of 13.87. Over the past decade, Hunan Warrant Pharmaceutical Co's ROE % has ranged from 7.17 to 23.85. According to the industry distribution chart, Hunan Warrant Pharmaceutical Co ranks #292 out of 933 companies in the Drug Manufacturers industry, placing it in the top 31.3%.
Is Hunan Warrant Pharmaceutical Co's ROE % too high?
Hunan Warrant Pharmaceutical Co's current ROE % of 5.22% is 62% below median its 10-year median of 13.87. Over the past 10 years, this metric has ranged from a low of 7.17 to a high of 23.85. The Drug Manufacturers industry median ROE % is 5.89. Hunan Warrant Pharmaceutical Co's value of 5.22% is 11.4% below this industry median. Based on the distribution chart, Hunan Warrant Pharmaceutical Co ranks #292 out of 933 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Hunan Warrant Pharmaceutical Co has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Warrant Pharmaceutical Co's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Hunan Warrant Pharmaceutical Co ranks #292 out of 933 companies for ROE %. This puts Hunan Warrant Pharmaceutical Co in the upper half of its industry. The industry median ROE % is 5.89. Hunan Warrant Pharmaceutical Co's value of 5.22% is 11.4% below this benchmark. Historically, Hunan Warrant Pharmaceutical Co's own ROE % has ranged from 7.17 to 23.85 over the past decade. While the company's 10-year median is 13.87 vs. the industry median of 5.89, Hunan Warrant Pharmaceutical 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 Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.89, based on 933 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 Warrant Pharmaceutical Co's current ROE % of 5.22% is 11.4% 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 Warrant Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Warrant Pharmaceutical Co's current ROE % is 5.22%, which is 62% below median its own 10-year median of 13.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Warrant Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Warrant Pharmaceutical Co (SHSE:688799) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥33.09, compared to a current price of ¥44.87 — trading 35.6% above its estimated fair value. The current ROE % is 5.22%, which is 62% below median its 10-year median of 13.87 and 11.4% below the Drug Manufacturers industry median of 5.89. Hunan Warrant Pharmaceutical Co's overall GF Score™ is 83/100 with 6 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 Warrant Pharmaceutical Co (SHSE:688799), the current ROE % is 5.22% 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 Warrant Pharmaceutical Co (SHSE:688799) Overvalued in 2026?

Based on GuruFocus' analysis, Hunan Warrant Pharmaceutical Co stock appears to be overvalued. The current stock price of ¥44.87 is trading 35.6% above its estimated GF Value™ of ¥33.09. GuruFocus considers Hunan Warrant Pharmaceutical Co to be Significantly Overvalued.

Key valuation signals for SHSE:688799:

  • ROE %: 5.22% (62% below median its 10-year median of 13.87)
  • GF Value™: ¥33.09 vs. price of ¥44.87 (35.6% above fair value)
  • GF Score™: 83/100 with 6 warning signs
  • Industry Position: 11.4% below the Drug Manufacturers median (#292 of 933)

No single metric tells the full story. See the SHSE:688799 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hunan Warrant Pharmaceutical Co Business Description

Address No. 28 Lutian Road, Building C6-C7, Yuelu District, Changsha, CHN, 410006
Hunan Warrant Pharmaceutical Co Ltd is a pharmaceutical manufacturer. It is engaged in the research and development, production and sales of chemical raw materials, chemical medicine preparations and Chinese medicine preparations.
83GF Score

Get the complete analysis for SHSE:688799

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

¥44.87
Price
¥33.09
GF Value