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Zhejiang Kan Specialities Material Co (SZSE:002012) 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.
Zhejiang Kan Specialities Material Co ROE % Related Terms
Zhejiang Kan Specialities Material 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.
Zhejiang Kan Specialities Material Co ROE % Competitor Comparison
For the Paper & Paper Products subindustry, Zhejiang Kan Specialities Material 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.
Zhejiang Kan Specialities Material Co ROE % vs Forest Products 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.
Zhejiang Kan Specialities Material Co (SZSE:002012) has a ROE % of 1.06% 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 Zhejiang Kan Specialities Material Co and its competitors. This is 63% below median its historical median of 2.84. Over the past decade, Zhejiang Kan Specialities Material Co's ROE % has ranged from 0.37 to 6.99. According to the industry distribution chart, Zhejiang Kan Specialities Material Co ranks #146 out of 279 companies in the Forest Products industry, placing it in the top 52.3%.
Is Zhejiang Kan Specialities Material Co's ROE % too high?
Zhejiang Kan Specialities Material Co's current ROE % of 1.06% is 63% below median its 10-year median of 2.84. Over the past 10 years, this metric has ranged from a low of 0.37 to a high of 6.99. The Forest Products industry median ROE % is 2.18. Zhejiang Kan Specialities Material Co's value of 1.06% is 51.4% below this industry median. Based on the distribution chart, Zhejiang Kan Specialities Material Co ranks #146 out of 279 companies in the Forest Products industry, which is below the industry midpoint. Overall, Zhejiang Kan Specialities Material Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Kan Specialities Material Co's ROE % compare to competitors?
According to the Forest Products industry distribution chart, Zhejiang Kan Specialities Material Co ranks #146 out of 279 companies for ROE %. This places Zhejiang Kan Specialities Material Co in the lower half of its industry. The industry median ROE % is 2.18. Zhejiang Kan Specialities Material Co's value of 1.06% is 51.4% below this benchmark. Historically, Zhejiang Kan Specialities Material Co's own ROE % has ranged from 0.37 to 6.99 over the past decade. While the company's 10-year median is 2.84 vs. the industry median of 2.18, Zhejiang Kan Specialities Material 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 Forest Products company?
The median ROE % among Forest Products companies is 2.18, based on 279 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. Zhejiang Kan Specialities Material Co's current ROE % of 1.06% is 51.4% 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 Zhejiang Kan Specialities Material Co and its competitors. For the Forest Products industry, the median ROE % is 2.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Kan Specialities Material Co's current ROE % is 1.06%, which is 63% below median its own 10-year median of 2.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Kan Specialities Material Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Kan Specialities Material Co (SZSE:002012) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥5.02, compared to a current price of ¥6.73 — trading 34.1% above its estimated fair value. The current ROE % is 1.06%, which is 63% below median its 10-year median of 2.84 and 51.4% below the Forest Products industry median of 2.18. Zhejiang Kan Specialities Material Co's overall GF Score™ is 62/100 with 4 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 Zhejiang Kan Specialities Material Co (SZSE:002012), the current ROE % is 1.06% 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 Zhejiang Kan Specialities Material Co (SZSE:002012) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Kan Specialities Material Co stock appears to be overvalued.
The current stock price of ¥6.73 is trading 34.1% above its estimated GF Value™ of ¥5.02.
GuruFocus considers Zhejiang Kan Specialities Material Co to be Significantly Overvalued.
Key valuation signals for SZSE:002012:
ROE %: 1.06% (63% below median its 10-year median of 2.84)
GF Value™: ¥5.02 vs. price of ¥6.73 (34.1% above fair value)
Industry Position: 51.4% below the Forest Products median (#146 of 279)
No single metric tells the full story. See the SZSE:002012 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Kan Specialities Material Co Ltd operates as a specialty paper company. The company mainly produces cigarette supporting paper, special food packaging paper, industrial supporting paper, and medical packaging materials.
62GF Score
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