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Zhejiang Zhaofeng Mechanical And Electronic Co (SZSE:300695) 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.
Zhejiang Zhaofeng Mechanical And Electronic Co ROE % Related Terms
Zhejiang Zhaofeng Mechanical And Electronic 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 Zhaofeng Mechanical And Electronic Co ROE % Chart
Zhejiang Zhaofeng Mechanical And Electronic Co Annual Data
* 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 Zhaofeng Mechanical And Electronic Co ROE % vs Vehicles & Parts 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Zhejiang Zhaofeng Mechanical And Electronic Co (SZSE:300695) has a ROE % of 4.27% 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 Zhejiang Zhaofeng Mechanical And Electronic Co and its competitors. This is 58% below median its historical median of 10.16. Over the past decade, Zhejiang Zhaofeng Mechanical And Electronic Co's ROE % has ranged from 5.50 to 45.04. According to the industry distribution chart, Zhejiang Zhaofeng Mechanical And Electronic Co ranks #465 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 35.6%.
Is Zhejiang Zhaofeng Mechanical And Electronic Co's ROE % too high?
Zhejiang Zhaofeng Mechanical And Electronic Co's current ROE % of 4.27% is 58% below median its 10-year median of 10.16. Over the past 10 years, this metric has ranged from a low of 5.50 to a high of 45.04. The Vehicles & Parts industry median ROE % is 6.92. Zhejiang Zhaofeng Mechanical And Electronic Co's value of 4.27% is 38.3% below this industry median. Based on the distribution chart, Zhejiang Zhaofeng Mechanical And Electronic Co ranks #465 out of 1307 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Zhejiang Zhaofeng Mechanical And Electronic Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Zhaofeng Mechanical And Electronic Co's ROE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Zhejiang Zhaofeng Mechanical And Electronic Co ranks #465 out of 1307 companies for ROE %. This puts Zhejiang Zhaofeng Mechanical And Electronic Co in the upper half of its industry. The industry median ROE % is 6.92. Zhejiang Zhaofeng Mechanical And Electronic Co's value of 4.27% is 38.3% below this benchmark. Historically, Zhejiang Zhaofeng Mechanical And Electronic Co's own ROE % has ranged from 5.50 to 45.04 over the past decade. While the company's 10-year median is 10.16 vs. the industry median of 6.92, Zhejiang Zhaofeng Mechanical And Electronic 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 6.92, based on 1,307 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 Zhaofeng Mechanical And Electronic Co's current ROE % of 4.27% is 38.3% 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 Zhaofeng Mechanical And Electronic Co and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Zhaofeng Mechanical And Electronic Co's current ROE % is 4.27%, which is 58% below median its own 10-year median of 10.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Zhaofeng Mechanical And Electronic Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Zhaofeng Mechanical And Electronic Co (SZSE:300695) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥39.01, compared to a current price of ¥46.59 — trading 19.4% above its estimated fair value. The current ROE % is 4.27%, which is 58% below median its 10-year median of 10.16 and 38.3% below the Vehicles & Parts industry median of 6.92. Zhejiang Zhaofeng Mechanical And Electronic Co's overall GF Score™ is 76/100 with 6 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 Zhaofeng Mechanical And Electronic Co (SZSE:300695), the current ROE % is 4.27% 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 Zhejiang Zhaofeng Mechanical And Electronic Co (SZSE:300695) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Zhaofeng Mechanical And Electronic Co stock appears to be overvalued.
The current stock price of ¥46.59 is trading 19.4% above its estimated GF Value™ of ¥39.01.
GuruFocus considers Zhejiang Zhaofeng Mechanical And Electronic Co to be Modestly Overvalued.
Key valuation signals for SZSE:300695:
ROE %: 4.27% (58% below median its 10-year median of 10.16)
GF Value™: ¥39.01 vs. price of ¥46.59 (19.4% above fair value)
Industry Position: 38.3% below the Vehicles & Parts median (#465 of 1307)
No single metric tells the full story. See the SZSE:300695 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Zhaofeng Mechanical And Electronic Co Ltd is an auto parts manufacturer specializing in the production of automotive wheel hub bearing units. The company specializes in producing first, second, and third generation hubs and varieties of precise bearings over 2900 types. Its products are widely used in middle and senior class sedans, commercial vehicles, trucks, and also well accepted in more than 30 countries and regions, including the United States, Canada, Germany, Italy, and South Korea.
76GF Score
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