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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Hangzhou XZB Tech Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was 22.51%.
The industry rank for Hangzhou XZB Tech Co's 3-Year RORE % or its related term are showing as below:
SHSE:603040's 3-Year RORE % is ranked better than 70.26% of 1251
companies
in the Vehicles & Parts industry
Industry Median: 4.51
vs SHSE:603040: 22.51
Hangzhou XZB Tech Co (SHSE:603040) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Hangzhou XZB Tech Co 3-Year RORE % Related Terms
Hangzhou XZB Tech Co 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Hangzhou XZB Tech Co's 3-Year RORE % can be seen below:
* 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.
SHSE:603040 vs ORLY, AZO: 3-Year RORE % Comparison
For the Auto Parts subindustry, Hangzhou XZB Tech Co's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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.
Hangzhou XZB Tech Co 3-Year RORE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hangzhou XZB Tech Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Hangzhou XZB Tech Co's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Hangzhou XZB Tech Co (SHSE:603040) has a 3-Year RORE % of 22.51 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Hangzhou XZB Tech Co and its competitors. According to the industry distribution chart, Hangzhou XZB Tech Co ranks #372 out of 1251 companies in the Vehicles & Parts industry, placing it in the top 29.7%.
Is Hangzhou XZB Tech Co's 3-Year RORE % too high?
Hangzhou XZB Tech Co's current 3-Year RORE % is 22.51. The Vehicles & Parts industry median 3-Year RORE % is 4.51. Hangzhou XZB Tech Co's value of 22.51 is 399.1% above this industry median. Based on the distribution chart, Hangzhou XZB Tech Co ranks #372 out of 1251 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Hangzhou XZB Tech Co has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou XZB Tech Co's 3-Year RORE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Hangzhou XZB Tech Co ranks #372 out of 1251 companies for 3-Year RORE %. This puts Hangzhou XZB Tech Co in the upper half of its industry. The industry median 3-Year RORE % is 4.51. Hangzhou XZB Tech Co's value of 22.51 is 399.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Vehicles & Parts company?
The median 3-Year RORE % among Vehicles & Parts companies is 4.51, based on 1,251 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hangzhou XZB Tech Co's current 3-Year RORE % of 22.51 is 399.1% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Hangzhou XZB Tech Co and its competitors. For the Vehicles & Parts industry, the median 3-Year RORE % is 4.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou XZB Tech Co's current 3-Year RORE % is 22.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou XZB Tech Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou XZB Tech Co (SHSE:603040) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥24.21, compared to a current price of ¥57.56 — trading 137.8% above its estimated fair value. The current 3-Year RORE % is 22.51 and 399.1% above the Vehicles & Parts industry median of 4.51. Hangzhou XZB Tech Co's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Hangzhou XZB Tech Co (SHSE:603040), the current 3-Year RORE % is 22.51 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 Hangzhou XZB Tech Co (SHSE:603040) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou XZB Tech Co stock appears to be overvalued.
The current stock price of ¥57.56 is trading 137.8% above its estimated GF Value™ of ¥24.21.
GuruFocus considers Hangzhou XZB Tech Co to be Significantly Overvalued.
Key valuation signals for SHSE:603040:
3-Year RORE %: 22.51
GF Value™: ¥24.21 vs. price of ¥57.56 (137.8% above fair value)
Industry Position: 399.1% above the Vehicles & Parts median (#372 of 1251)
No single metric tells the full story. See the SHSE:603040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou XZB Tech Co Ltd is a China based company engaged in the research and development of valve train systems and parts manufacturing in car industry. The products offered by the company includes valve cotters (collets), valve spring retainers, hydraulic lash adjusters and finger followers, push rods and tappets for heavy-duty diesel engines. In addition, the company also produces precision cold-forming components together with good service for power tools, household electrical appliance, aerospace, machinery and other applications.
85GF Score
Get the complete analysis for SHSE:603040
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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