HMC CapitalASX:HMC 65 ROA % is 0.41% as of Dec. 2025, which is 91% below its 10-year median of 4.64. GuruFocus rates ASX:HMC with a GF Score™ of 65/100 and a GF Value™ of A$14.14 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 938 REITs companies, HMC Capital ranks worse than 92.32% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. HMC Capital's annualizedNet Income for the quarter that ended in Dec. 2025 was A$11.6 Mil.
HMC Capital's average Total Assets over the quarter that ended in Dec. 2025 was A$2,814.8 Mil. Therefore, HMC Capital's annualized ROA % for the quarter that ended in Dec. 2025 was 0.41%.
The historical rank and industry rank for HMC Capital's ROA % or its related term are showing as below:
ASX:HMC'
s ROA % Range Over the Past 10 Years
Min: -7.96 Med: 4.64 Max: 8.15
Current: -4.49
During the past 7 years, HMC Capital's highest ROA % was 8.15%. The lowest was -7.96%. And the median was 4.64%.
ASX:HMC's ROA % is ranked worse than 92.32% of 938
companies
in the REITs industry
Industry Median: 3.23
vs ASX:HMC: -4.49
HMC Capital (ASX:HMC) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
HMC Capital ROA % Related Terms
HMC Capital ROA % Historical Data
* Premium members only.
The historical data trend for HMC Capital's ROA % 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.
For the REIT - Diversified subindustry, HMC Capital's ROA %, along with its competitors' market caps and ROA % 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.
HMC Capital ROA % vs REITs Industry
For the REITs industry and Real Estate sector, HMC Capital's ROA % distribution charts can be found below:
* The bar in red indicates where HMC Capital's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
HMC Capital (ASX:HMC) has a ROA % of 0.41% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on HMC Capital and its competitors. This is 91% below median its historical median of 4.64. According to the industry distribution chart, HMC Capital ranks #866 out of 938 companies in the REITs industry, placing it in the top 92.3%.
Is HMC Capital's ROA % too high?
HMC Capital's current ROA % of 0.41% is 91% below median its 10-year median of 4.64. The REITs industry median ROA % is 3.23. HMC Capital's value of 0.41% is 87.3% below this industry median. Based on the distribution chart, HMC Capital ranks #866 out of 938 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, HMC Capital has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HMC Capital's ROA % compare to VICI and WPC?
According to the REITs industry distribution chart, HMC Capital ranks #866 out of 938 companies for ROA %. This places HMC Capital in the lower half of its industry. The industry median ROA % is 3.23. HMC Capital's value of 0.41% is 87.3% below this benchmark. While the company's 10-year median is 4.64 vs. the industry median of 3.23, HMC Capital 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 ROA % for a REITs company?
The median ROA % among REITs companies is 3.23, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HMC Capital's current ROA % of 0.41% is 87.3% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on HMC Capital and its competitors. For the REITs industry, the median ROA % is 3.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HMC Capital's current ROA % is 0.41%, which is 91% below median its own 10-year median of 4.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HMC Capital stock overvalued right now?
Based on GuruFocus' analysis, HMC Capital (ASX:HMC) is currently considered Possible Value Trap. The stock's GF Value™ is A$14.14, compared to a current price of A$2.95 — trading 79.1% below its estimated fair value. The current ROA % is 0.41%, which is 91% below median its 10-year median of 4.64 and 87.3% below the REITs industry median of 3.23. HMC Capital's overall GF Score™ is 65/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For HMC Capital (ASX:HMC), the current ROA % is 0.41% as of Dec. 2025. 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 HMC Capital (ASX:HMC) Overvalued in 2026?
Based on GuruFocus' analysis, HMC Capital stock appears to be undervalued.
The current stock price of A$2.95 is trading 79.1% below its estimated GF Value™ of A$14.14.
GuruFocus considers HMC Capital to be Possible Value Trap.
Key valuation signals for ASX:HMC:
ROA %: 0.41% (91% below median its 10-year median of 4.64)
GF Value™: A$14.14 vs. price of A$2.95 (79.1% below fair value)
Industry Position: 87.3% below the REITs median (#866 of 938)
No single metric tells the full story. See the ASX:HMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HMC Capital Ltd is a property group focused on ownership, development, and management. The company's operating segment includes Real Estate which comprises of HMC Capital managed HomeCo Daily Needs REIT, HealthCo Healthcare and Wellness REIT, HMC Wholesale Healthcare Fund and the Last Mile Logistics Fund; Private Equity which includes the HMC Capital Partners Fund I, a high conviction strategic stakes fund; and Corporate properties which includes unallocated costs and Capital Solutions activities which includes short term investments undertaken relating to non-HMC managed funds. It generates maximum revenue from the Real Estate segment. The company portfolio comprises mainly retail and services centers.
65GF Score
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