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Hunan Dezhong Automotiveles Service Co (BJSE:920030) 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 four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) 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.
Hunan Dezhong Automotiveles Service Co ROA % Related Terms
Hunan Dezhong Automotiveles Service Co ROA % 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.
Hunan Dezhong Automotiveles Service Co ROA % Chart
Hunan Dezhong Automotiveles Service Co Annual Data
For the Auto & Truck Dealerships subindustry, Hunan Dezhong Automotiveles Service Co'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.
Hunan Dezhong Automotiveles Service Co ROA % 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 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 four times the quarterly (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Hunan Dezhong Automotiveles Service Co (BJSE:920030) has a ROA % of 0.77% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hunan Dezhong Automotiveles Service Co and its competitors. This is 83% below median its historical median of 4.48. According to the industry distribution chart, Hunan Dezhong Automotiveles Service Co ranks #1083 out of 1329 companies in the Vehicles & Parts industry, placing it in the top 81.5%.
Is Hunan Dezhong Automotiveles Service Co's ROA % too high?
Hunan Dezhong Automotiveles Service Co's current ROA % of 0.77% is 83% below median its 10-year median of 4.48. The Vehicles & Parts industry median ROA % is 3.17. Hunan Dezhong Automotiveles Service Co's value of 0.77% is 75.7% below this industry median. Based on the distribution chart, Hunan Dezhong Automotiveles Service Co ranks #1083 out of 1329 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Hunan Dezhong Automotiveles Service Co has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hunan Dezhong Automotiveles Service Co's ROA % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Hunan Dezhong Automotiveles Service Co ranks #1083 out of 1329 companies for ROA %. This places Hunan Dezhong Automotiveles Service Co in the lower half of its industry. The industry median ROA % is 3.17. Hunan Dezhong Automotiveles Service Co's value of 0.77% is 75.7% below this benchmark. While the company's 10-year median is 4.48 vs. the industry median of 3.17, Hunan Dezhong Automotiveles Service 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 ROA % for a Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 3.17, based on 1,329 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. Hunan Dezhong Automotiveles Service Co's current ROA % of 0.77% is 75.7% 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 Hunan Dezhong Automotiveles Service Co and its competitors. For the Vehicles & Parts industry, the median ROA % is 3.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Dezhong Automotiveles Service Co's current ROA % is 0.77%, which is 83% below median its own 10-year median of 4.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Dezhong Automotiveles Service Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Dezhong Automotiveles Service Co (BJSE:920030) is currently considered Fairly Valued. The stock's GF Value™ is ¥4.29, compared to a current price of ¥4.61 — trading 7.5% above its estimated fair value. The current ROA % is 0.77%, which is 83% below median its 10-year median of 4.48 and 75.7% below the Vehicles & Parts industry median of 3.17. Hunan Dezhong Automotiveles Service Co's overall GF Score™ is 58/100 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 Hunan Dezhong Automotiveles Service Co (BJSE:920030), the current ROA % is 0.77% 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 Hunan Dezhong Automotiveles Service Co (BJSE:920030) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Dezhong Automotiveles Service Co stock appears to be overvalued.
The current stock price of ¥4.61 is trading 7.5% above its estimated GF Value™ of ¥4.29.
GuruFocus considers Hunan Dezhong Automotiveles Service Co to be Fairly Valued.
Key valuation signals for BJSE:920030:
ROA %: 0.77% (83% below median its 10-year median of 4.48)
GF Value™: ¥4.29 vs. price of ¥4.61 (7.5% above fair value)
Industry Position: 75.7% below the Vehicles & Parts median (#1083 of 1329)
No single metric tells the full story. See the BJSE:920030 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Dezhong Automotive Sales Service Co Ltd is engaged in an Automobile company. The company also offers auto after-sales maintenance services, auto parts sales, and auto beauty and decoration services. The company's main business activities include: sales of automobiles and parts, after-sales repair of automobiles, automobile decoration, and automobile value-added services.
58GF Score
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