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Guangdong Xianglu Tungsten Co (SZSE:002842) 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.
Guangdong Xianglu Tungsten Co ROE % Related Terms
Guangdong Xianglu Tungsten 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.
Guangdong Xianglu Tungsten Co ROE % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Guangdong Xianglu Tungsten 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.
Guangdong Xianglu Tungsten Co ROE % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Guangdong Xianglu Tungsten Co's ROE % distribution charts can be found below:
* The bar in red indicates where Guangdong Xianglu Tungsten 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.
Guangdong Xianglu Tungsten Co (SZSE:002842) has a ROE % of 59.61% 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 Guangdong Xianglu Tungsten Co and its competitors. This is 926% above median its historical median of 5.81. According to the industry distribution chart, Guangdong Xianglu Tungsten Co ranks #113 out of 2403 companies in the Metals & Mining industry, placing it in the top 4.7%.
Is Guangdong Xianglu Tungsten Co's ROE % too high?
Guangdong Xianglu Tungsten Co's current ROE % of 59.61% is 926% above median its 10-year median of 5.81. Based on the distribution chart, Guangdong Xianglu Tungsten Co ranks #113 out of 2403 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Guangdong Xianglu Tungsten Co has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Xianglu Tungsten Co's ROE % compare to competitors?
According to the Metals & Mining industry distribution chart, Guangdong Xianglu Tungsten Co ranks #113 out of 2403 companies for ROE %. This places Guangdong Xianglu Tungsten Co in the top 5% of its industry — outperforming the majority of peers. 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 Metals & Mining company?
A good ROE % depends on the Metals & Mining industry context. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Guangdong Xianglu Tungsten Co and its competitors. Guangdong Xianglu Tungsten Co's current ROE % is 59.61%, which is 926% above median its own 10-year median of 5.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Xianglu Tungsten Co stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Xianglu Tungsten Co (SZSE:002842) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥16.33, compared to a current price of ¥35.40 — trading 116.8% above its estimated fair value. The current ROE % is 59.61%, which is 926% above median its 10-year median of 5.81. Guangdong Xianglu Tungsten Co's overall GF Score™ is 55/100 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 Guangdong Xianglu Tungsten Co (SZSE:002842), the current ROE % is 59.61% 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 Guangdong Xianglu Tungsten Co (SZSE:002842) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Xianglu Tungsten Co stock appears to be overvalued.
The current stock price of ¥35.40 is trading 116.8% above its estimated GF Value™ of ¥16.33.
GuruFocus considers Guangdong Xianglu Tungsten Co to be Significantly Overvalued.
Key valuation signals for SZSE:002842:
ROE %: 59.61% (926% above median its 10-year median of 5.81)
GF Value™: ¥16.33 vs. price of ¥35.40 (116.8% above fair value)
No single metric tells the full story. See the SZSE:002842 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Xianglu Tungsten Co Ltd is engaged in research and development, production and marketing of tungsten products in China. The company has a complete product system of APT, WO3, W, WC Powder and Hard Metal and one of the qualified tungsten exports and suppliers in China. It product portfolio includes Tungstates, Oxides and Acid, Tungsten/Tungsten Carbide Powder and Hardmetal/Cemented Carbide.
55GF Score
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