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Hunan Valin Steel Co (SZSE:000932) 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.
* 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 Steel subindustry, Hunan Valin Steel 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 Valin Steel Co ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, Hunan Valin Steel Co's ROE % distribution charts can be found below:
* The bar in red indicates where Hunan Valin Steel 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.
Hunan Valin Steel Co (SZSE:000932) has a ROE % of 0.20% 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 Hunan Valin Steel Co and its competitors. This is 99% below median its historical median of 15.84. According to the industry distribution chart, Hunan Valin Steel Co ranks #385 out of 614 companies in the Steel industry, placing it in the top 62.7%.
Is Hunan Valin Steel Co's ROE % too high?
Hunan Valin Steel Co's current ROE % of 0.20% is 99% below median its 10-year median of 15.84. The Steel industry median ROE % is 4.41. Hunan Valin Steel Co's value of 0.20% is 95.5% below this industry median. Based on the distribution chart, Hunan Valin Steel Co ranks #385 out of 614 companies in the Steel industry, which is below the industry midpoint. Overall, Hunan Valin Steel Co has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Valin Steel Co's ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Hunan Valin Steel Co ranks #385 out of 614 companies for ROE %. This places Hunan Valin Steel Co in the lower half of its industry. The industry median ROE % is 4.41. Hunan Valin Steel Co's value of 0.20% is 95.5% below this benchmark. While the company's 10-year median is 15.84 vs. the industry median of 4.41, Hunan Valin Steel 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 Steel company?
The median ROE % among Steel companies is 4.41, based on 614 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 Valin Steel Co's current ROE % of 0.20% is 95.5% 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 Valin Steel Co and its competitors. For the Steel industry, the median ROE % is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Valin Steel Co's current ROE % is 0.20%, which is 99% below median its own 10-year median of 15.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Valin Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Valin Steel Co (SZSE:000932) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥4.29, compared to a current price of ¥3.57 — trading 16.8% below its estimated fair value. The current ROE % is 0.20%, which is 99% below median its 10-year median of 15.84 and 95.5% below the Steel industry median of 4.41. Hunan Valin Steel Co's overall GF Score™ is 53/100 with 7 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 Valin Steel Co (SZSE:000932), the current ROE % is 0.20% 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 Hunan Valin Steel Co (SZSE:000932) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Valin Steel Co stock appears to be undervalued.
The current stock price of ¥3.57 is trading 16.8% below its estimated GF Value™ of ¥4.29.
GuruFocus considers Hunan Valin Steel Co to be Modestly Undervalued.
Key valuation signals for SZSE:000932:
ROE %: 0.20% (99% below median its 10-year median of 15.84)
GF Value™: ¥4.29 vs. price of ¥3.57 (16.8% below fair value)
Industry Position: 95.5% below the Steel median (#385 of 614)
No single metric tells the full story. See the SZSE:000932 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Valin Steel Co Ltd is engaged in the manufacture and distribution of steel products in China. It is also a steel solution provider. The company's main products include four series: wide and thick plates, hot and cold rolled thin plates, wire rods, and seamless steel pipes.
53GF Score
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