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Feilong Auto Components Co (SZSE:002536) 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 Auto Parts subindustry, Feilong Auto Components 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.
Feilong Auto Components Co ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Feilong Auto Components Co's ROE % distribution charts can be found below:
* The bar in red indicates where Feilong Auto Components 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.
Feilong Auto Components Co (SZSE:002536) has a ROE % of 2.09% 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 Feilong Auto Components Co and its competitors. This is 73% below median its historical median of 7.84. Over the past decade, Feilong Auto Components Co's ROE % has ranged from 3.10 to 12.42. According to the industry distribution chart, Feilong Auto Components Co ranks #755 out of 1309 companies in the Vehicles & Parts industry, placing it in the top 57.7%.
Is Feilong Auto Components Co's ROE % too high?
Feilong Auto Components Co's current ROE % of 2.09% is 73% below median its 10-year median of 7.84. Over the past 10 years, this metric has ranged from a low of 3.10 to a high of 12.42. The Vehicles & Parts industry median ROE % is 6.96. Feilong Auto Components Co's value of 2.09% is 70% below this industry median. Based on the distribution chart, Feilong Auto Components Co ranks #755 out of 1309 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Feilong Auto Components Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Feilong Auto Components Co's ROE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Feilong Auto Components Co ranks #755 out of 1309 companies for ROE %. This places Feilong Auto Components Co in the lower half of its industry. The industry median ROE % is 6.96. Feilong Auto Components Co's value of 2.09% is 70% below this benchmark. Historically, Feilong Auto Components Co's own ROE % has ranged from 3.10 to 12.42 over the past decade. While the company's 10-year median is 7.84 vs. the industry median of 6.96, Feilong Auto Components 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 Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.96, based on 1,309 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. Feilong Auto Components Co's current ROE % of 2.09% is 70% 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 Feilong Auto Components Co and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Feilong Auto Components Co's current ROE % is 2.09%, which is 73% below median its own 10-year median of 7.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Feilong Auto Components Co stock overvalued right now?
Based on GuruFocus' analysis, Feilong Auto Components Co (SZSE:002536) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥15.74, compared to a current price of ¥53.33 — trading 238.8% above its estimated fair value. The current ROE % is 2.09%, which is 73% below median its 10-year median of 7.84 and 70% below the Vehicles & Parts industry median of 6.96. Feilong Auto Components Co's overall GF Score™ is 73/100 with 10 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 Feilong Auto Components Co (SZSE:002536), the current ROE % is 2.09% 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 Feilong Auto Components Co (SZSE:002536) Overvalued in 2026?
Based on GuruFocus' analysis, Feilong Auto Components Co stock appears to be overvalued.
The current stock price of ¥53.33 is trading 238.8% above its estimated GF Value™ of ¥15.74.
GuruFocus considers Feilong Auto Components Co to be Significantly Overvalued.
Key valuation signals for SZSE:002536:
ROE %: 2.09% (73% below median its 10-year median of 7.84)
GF Value™: ¥15.74 vs. price of ¥53.33 (238.8% above fair value)
Industry Position: 70% below the Vehicles & Parts median (#755 of 1309)
No single metric tells the full story. See the SZSE:002536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Feilong Auto Components Co Ltd through its subsidiaries is engaged in manufacturing and selling automobile parts in the People's Republic of China and internationally. It offers products such as Automobile water pumps under the Feilong brand; and Engine intake and Exhaust manifolds, Flywheel housings, Turbocharger, Die and gravity castings, Turbine housings, and Oil pumps, among other products.
73GF Score
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