Chagee HoldingsCHA -2.98%22 ROA % is 15.75% as of Mar. 2026, which is 48% below its 10-year median of 30.14. GuruFocus rates CHA with a GF Score™ of 22/100. The stock has 2 warning signs investors should review. Among 367 Restaurants companies, Chagee Holdings ranks better than 84.2% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Chagee Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $261 Mil.
Chagee Holdings's average Total Assets over the quarter that ended in Mar. 2026 was $1,659 Mil. Therefore, Chagee Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 15.75%.
The historical rank and industry rank for Chagee Holdings's ROA % or its related term are showing as below:
CHA'
s ROA % Range Over the Past 10 Years
Min: -23.03 Med: 30.14 Max: 53.1
Current: 8.84
During the past 4 years, Chagee Holdings's highest ROA % was 53.10%. The lowest was -23.03%. And the median was 30.14%.
CHA's ROA % is ranked better than 84.2% of 367
companies
in the Restaurants industry
Industry Median: 2.15
vs CHA: 8.84
Chagee Holdings (NAS:CHA) 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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
Chagee Holdings ROA % Related Terms
Chagee Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Chagee Holdings'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 Restaurants subindustry, Chagee Holdings'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.
Chagee Holdings ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Chagee Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Chagee Holdings'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 four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Chagee Holdings (CHA) has a ROA % of 15.75% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Chagee Holdings and its competitors. This is 48% below median its historical median of 30.14. According to the industry distribution chart, Chagee Holdings ranks #58 out of 367 companies in the Restaurants industry, placing it in the top 15.8%.
Is Chagee Holdings' ROA % too high?
Chagee Holdings' current ROA % of 15.75% is 48% below median its 10-year median of 30.14. The Restaurants industry median ROA % is 2.15. Chagee Holdings' value of 15.75% is 632.6% above this industry median. Based on the distribution chart, Chagee Holdings ranks #58 out of 367 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Chagee Holdings has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Chagee Holdings' ROA % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Chagee Holdings ranks #58 out of 367 companies for ROA %. This places Chagee Holdings in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 2.15. Chagee Holdings' value of 15.75% is 632.6% above this benchmark. While the company's 10-year median is 30.14 vs. the industry median of 2.15, Chagee Holdings 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 ROA % for a Restaurants company?
The median ROA % among Restaurants companies is 2.15, based on 367 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. Chagee Holdings's current ROA % of 15.75% is 632.6% 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 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 Chagee Holdings and its competitors. For the Restaurants industry, the median ROA % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chagee Holdings's current ROA % is 15.75%, which is 48% below median its own 10-year median of 30.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chagee Holdings stock overvalued right now?
Chagee Holdings (CHA) has a current ROA % of 15.75%. The current ROA % is 15.75%, which is 48% below median its 10-year median of 30.14 and 632.6% above the Restaurants industry median of 2.15. Chagee Holdings' overall GF Score™ is 22/100 with 2 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 Chagee Holdings (CHA), the current ROA % is 15.75% 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.
Chagee Holdings Ltd is a premium tea drinks brand. It is engaged in the sales of freshly-made tea drinks, related raw materials, packaging, teahouse equipment, and other supplies in the People's Republic of China.
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