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Northeast Pharmaceutical Group Co (SZSE:000597) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Northeast Pharmaceutical Group Co ROE % Related Terms
Northeast Pharmaceutical Group 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Northeast Pharmaceutical 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.
Northeast Pharmaceutical Group Co ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Northeast Pharmaceutical Group Co's ROE % distribution charts can be found below:
* The bar in red indicates where Northeast Pharmaceutical Group Co'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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Northeast Pharmaceutical Group Co (SZSE:000597) has a ROE % of 4.13% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Northeast Pharmaceutical Group Co and its competitors. This is 16% below median its historical median of 4.90. Over the past decade, Northeast Pharmaceutical Group Co's ROE % has ranged from 0.31 to 8.05. According to the industry distribution chart, Northeast Pharmaceutical Group Co ranks #536 out of 941 companies in the Drug Manufacturers industry, placing it in the top 57%.
Is Northeast Pharmaceutical Group Co's ROE % too high?
Northeast Pharmaceutical Group Co's current ROE % of 4.13% is 16% below median its 10-year median of 4.90. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 8.05. The Drug Manufacturers industry median ROE % is 6.14. Northeast Pharmaceutical Group Co's value of 4.13% is 32.7% below this industry median. Based on the distribution chart, Northeast Pharmaceutical Group Co ranks #536 out of 941 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Northeast Pharmaceutical Group Co has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Northeast Pharmaceutical Group Co's ROE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Northeast Pharmaceutical Group Co ranks #536 out of 941 companies for ROE %. This places Northeast Pharmaceutical Group Co in the lower half of its industry. The industry median ROE % is 6.14. Northeast Pharmaceutical Group Co's value of 4.13% is 32.7% below this benchmark. Historically, Northeast Pharmaceutical Group Co's own ROE % has ranged from 0.31 to 8.05 over the past decade. While the company's 10-year median is 4.90 vs. the industry median of 6.14, Northeast Pharmaceutical Group 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 6.14, based on 941 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. Northeast Pharmaceutical Group Co's current ROE % of 4.13% is 32.7% 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 Northeast Pharmaceutical Group Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northeast Pharmaceutical Group Co's current ROE % is 4.13%, which is 16% below median its own 10-year median of 4.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northeast Pharmaceutical Group Co stock overvalued right now?
Based on GuruFocus' analysis, Northeast Pharmaceutical Group Co (SZSE:000597) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥4.21, compared to a current price of ¥4.74 — trading 12.6% above its estimated fair value. The current ROE % is 4.13%, which is 16% below median its 10-year median of 4.90 and 32.7% below the Drug Manufacturers industry median of 6.14. Northeast Pharmaceutical Group Co's overall GF Score™ is 62/100 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 Northeast Pharmaceutical Group Co (SZSE:000597), the current ROE % is 4.13% as of Jun. 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 Northeast Pharmaceutical Group Co (SZSE:000597) Overvalued in 2026?
Based on GuruFocus' analysis, Northeast Pharmaceutical Group Co stock appears to be overvalued.
The current stock price of ¥4.74 is trading 12.6% above its estimated GF Value™ of ¥4.21.
GuruFocus considers Northeast Pharmaceutical Group Co to be Modestly Overvalued.
Key valuation signals for SZSE:000597:
ROE %: 4.13% (16% below median its 10-year median of 4.90)
GF Value™: ¥4.21 vs. price of ¥4.74 (12.6% above fair value)
Industry Position: 32.7% below the Drug Manufacturers median (#536 of 941)
No single metric tells the full story. See the SZSE:000597 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northeast Pharmaceutical Group Co Ltd is engaged in the production and distribution of ammonium phosphate, sulfuric acid, cement, compound fertilizer, bromine, raw salt, and diammonium phosphate.
62GF Score
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