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Guizhou Chanhen Chemical (SZSE:002895) 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.
* 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 Chemicals subindustry, Guizhou Chanhen Chemical'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.
Guizhou Chanhen Chemical ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Guizhou Chanhen Chemical's ROE % distribution charts can be found below:
* The bar in red indicates where Guizhou Chanhen Chemical'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Guizhou Chanhen Chemical (SZSE:002895) has a ROE % of 9.65% 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 Guizhou Chanhen Chemical and its competitors. This is near median its historical median of 10.28. Over the past decade, Guizhou Chanhen Chemical's ROE % has ranged from 4.06 to 19.11. According to the industry distribution chart, Guizhou Chanhen Chemical ranks #184 out of 1589 companies in the Chemicals industry, placing it in the top 11.6%.
Is Guizhou Chanhen Chemical's ROE % too high?
Guizhou Chanhen Chemical's current ROE % of 9.65% is near median its 10-year median of 10.28. Over the past 10 years, this metric has ranged from a low of 4.06 to a high of 19.11. The Chemicals industry median ROE % is 5.55. Guizhou Chanhen Chemical's value of 9.65% is 73.9% above this industry median. Based on the distribution chart, Guizhou Chanhen Chemical ranks #184 out of 1589 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Guizhou Chanhen Chemical has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Guizhou Chanhen Chemical's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Guizhou Chanhen Chemical ranks #184 out of 1589 companies for ROE %. This places Guizhou Chanhen Chemical in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 5.55. Guizhou Chanhen Chemical's value of 9.65% is 73.9% above this benchmark. Historically, Guizhou Chanhen Chemical's own ROE % has ranged from 4.06 to 19.11 over the past decade. While the company's 10-year median is 10.28 vs. the industry median of 5.55, Guizhou Chanhen Chemical has consistently been above 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 Chemicals company?
The median ROE % among Chemicals companies is 5.55, based on 1,589 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. Guizhou Chanhen Chemical's current ROE % of 9.65% is 73.9% above 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 Guizhou Chanhen Chemical and its competitors. For the Chemicals industry, the median ROE % is 5.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guizhou Chanhen Chemical's current ROE % is 9.65%, which is near median its own 10-year median of 10.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guizhou Chanhen Chemical stock overvalued right now?
Based on GuruFocus' analysis, Guizhou Chanhen Chemical (SZSE:002895) is currently considered Fairly Valued. The stock's GF Value™ is ¥35.72, compared to a current price of ¥33.23 — trading 7% below its estimated fair value. The current ROE % is 9.65%, which is near median its 10-year median of 10.28 and 73.9% above the Chemicals industry median of 5.55. Guizhou Chanhen Chemical's overall GF Score™ is 97/100 with 1 warning sign 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 Guizhou Chanhen Chemical (SZSE:002895), the current ROE % is 9.65% 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 Guizhou Chanhen Chemical (SZSE:002895) Overvalued in 2026?
Based on GuruFocus' analysis, Guizhou Chanhen Chemical stock appears to be undervalued.
The current stock price of ¥33.23 is trading 7% below its estimated GF Value™ of ¥35.72.
GuruFocus considers Guizhou Chanhen Chemical to be Fairly Valued.
Key valuation signals for SZSE:002895:
ROE %: 9.65% (near median its 10-year median of 10.28)
GF Value™: ¥35.72 vs. price of ¥33.23 (7% below fair value)
Industry Position: 73.9% above the Chemicals median (#184 of 1589)
No single metric tells the full story. See the SZSE:002895 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guizhou Chanhen Chemical Corp operates in the phosphorus chemical industry. The company's main business is the production and sales of phosphoric acid and phosphate products. Its product portfolio consists of phosphate rock, feed additive, new fertilizer and firefighting ammonium.
97GF Score
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