China Railway GroupSTU:CNO -1.34%59 ROE % is 4.76% as of Mar. 2026, which is 55% below its 10-year median of 10.49. GuruFocus rates STU:CNO with a GF Score™ of 59/100 and a GF Value™ of €0.47 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,738 Construction companies, China Railway Group ranks worse than 54.14% on this metric.
The historical rank and industry rank for China Railway Group's ROE % or its related term are showing as below:
STU:CNO'
s ROE % Range Over the Past 10 Years
Min: 5.75 Med: 10.49 Max: 11.46
Current: 5.75
During the past 13 years, China Railway Group's highest ROE % was 11.46%. The lowest was 5.75%. And the median was 10.49%.
STU:CNO's ROE % is ranked worse than 54.14% of 1738
companies
in the Construction industry
Industry Median: 6.715
vs STU:CNO: 5.75
China Railway Group (STU:CNO) 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.
China Railway Group ROE % Related Terms
China Railway Group ROE % Historical Data
* Premium members only.
The historical data trend for China Railway Group'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.
For the Engineering & Construction subindustry, China Railway Group'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 Group ROE % vs Construction Industry
For the Construction industry and Industrials sector, China Railway Group's ROE % distribution charts can be found below:
* The bar in red indicates where China Railway Group's ROE % falls into.
* 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.
China Railway Group (STU:CNO) has a ROE % of 4.76% 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 Group and its competitors. This is 55% below median its historical median of 10.49. Over the past decade, China Railway Group's ROE % has ranged from 5.75 to 11.46. According to the industry distribution chart, China Railway Group ranks #941 out of 1738 companies in the Construction industry, placing it in the top 54.1%.
Is China Railway Group's ROE % too high?
China Railway Group's current ROE % of 4.76% is 55% below median its 10-year median of 10.49. Over the past 10 years, this metric has ranged from a low of 5.75 to a high of 11.46. The Construction industry median ROE % is 6.72. China Railway Group's value of 4.76% is 29.1% below this industry median. Based on the distribution chart, China Railway Group ranks #941 out of 1738 companies in the Construction industry, which is below the industry midpoint. Overall, China Railway Group has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Group's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, China Railway Group ranks #941 out of 1738 companies for ROE %. This places China Railway Group in the lower half of its industry. The industry median ROE % is 6.72. China Railway Group's value of 4.76% is 29.1% below this benchmark. Historically, China Railway Group's own ROE % has ranged from 5.75 to 11.46 over the past decade. While the company's 10-year median is 10.49 vs. the industry median of 6.72, China Railway Group 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 Construction company?
The median ROE % among Construction companies is 6.72, based on 1,738 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 Group's current ROE % of 4.76% is 29.1% 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 Group and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Group's current ROE % is 4.76%, which is 55% below median its own 10-year median of 10.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Group stock overvalued right now?
Based on GuruFocus' analysis, China Railway Group (STU:CNO) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.47, compared to a current price of €0.38 — trading 20.2% below its estimated fair value. The current ROE % is 4.76%, which is 55% below median its 10-year median of 10.49 and 29.1% below the Construction industry median of 6.72. China Railway Group's overall GF Score™ is 59/100 with 8 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 Group (STU:CNO), the current ROE % is 4.76% 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 Group (STU:CNO) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Group stock appears to be undervalued.
The current stock price of €0.38 is trading 20.2% below its estimated GF Value™ of €0.47.
GuruFocus considers China Railway Group to be Modestly Undervalued.
Key valuation signals for STU:CNO:
ROE %: 4.76% (55% below median its 10-year median of 10.49)
GF Value™: €0.47 vs. price of €0.38 (20.2% below fair value)
Industry Position: 29.1% below the Construction median (#941 of 1738)
No single metric tells the full story. See the STU:CNO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Group Ltd is a construction conglomerate company. The company's operating segment includes Infrastructure construction; Survey, design and consulting services; Engineering equipment and component manufacturing; Property development, and Other businesses. It generates maximum revenue from the Infrastructure construction segment. The Infrastructure construction segment includes the construction of railways, highways, bridges, tunnels, metropolitan railways (including subways and light railways), buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works.
59GF Score
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