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China Merchants Securities Asset Management Co.,Ltd (FRA:195H) 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 (Jun. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
China Merchants Securities Asset Management Co.,Ltd ROA % Related Terms
China Merchants Securities Asset Management Co.,Ltd 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.
China Merchants Securities Asset Management Co.,Ltd ROA % Chart
China Merchants Securities Asset Management Co.,Ltd 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.
China Merchants Securities Asset Management Co.,Ltd ROA % vs Capital Markets 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 two times the semi-annual (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
China Merchants Securities Asset Management Co.,Ltd (FRA:195H) has a ROA % of 2.42% 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 China Merchants Securities Asset Management Co.,Ltd and its competitors. This is 31% above median its historical median of 1.85. Over the past decade, China Merchants Securities Asset Management Co.,Ltd's ROA % has ranged from 1.34 to 2.32. According to the industry distribution chart, China Merchants Securities Asset Management Co.,Ltd ranks #340 out of 811 companies in the Capital Markets industry, placing it in the top 41.9%.
Is China Merchants Securities Asset Management Co.,Ltd's ROA % too high?
China Merchants Securities Asset Management Co.,Ltd's current ROA % of 2.42% is 31% above median its 10-year median of 1.85. Over the past 10 years, this metric has ranged from a low of 1.34 to a high of 2.32. The Capital Markets industry median ROA % is 1.54. China Merchants Securities Asset Management Co.,Ltd's value of 2.42% is 57.1% above this industry median. Based on the distribution chart, China Merchants Securities Asset Management Co.,Ltd ranks #340 out of 811 companies in the Capital Markets industry, which is above the industry midpoint. Overall, China Merchants Securities Asset Management Co.,Ltd has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does China Merchants Securities Asset Management Co.,Ltd's ROA % compare to MS and GS?
According to the Capital Markets industry distribution chart, China Merchants Securities Asset Management Co.,Ltd ranks #340 out of 811 companies for ROA %. This puts China Merchants Securities Asset Management Co.,Ltd in the upper half of its industry. The industry median ROA % is 1.54. China Merchants Securities Asset Management Co.,Ltd's value of 2.42% is 57.1% above this benchmark. Historically, China Merchants Securities Asset Management Co.,Ltd's own ROA % has ranged from 1.34 to 2.32 over the past decade. While the company's 10-year median is 1.85 vs. the industry median of 1.54, China Merchants Securities Asset Management Co.,Ltd 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 Capital Markets company?
The median ROA % among Capital Markets companies is 1.54, based on 811 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. China Merchants Securities Asset Management Co.,Ltd's current ROA % of 2.42% is 57.1% 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 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 China Merchants Securities Asset Management Co.,Ltd and its competitors. For the Capital Markets industry, the median ROA % is 1.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Securities Asset Management Co.,Ltd's current ROA % is 2.42%, which is 31% above median its own 10-year median of 1.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Securities Asset Management Co.,Ltd stock overvalued right now?
China Merchants Securities Asset Management Co.,Ltd (FRA:195H) has a current ROA % of 2.42%. The stock's GF Value™ is €2.79, compared to a current price of €1.55 — trading 44.4% below its estimated fair value. The current ROA % is 2.42%, which is 31% above median its 10-year median of 1.85 and 57.1% above the Capital Markets industry median of 1.54. China Merchants Securities Asset Management Co.,Ltd's overall GF Score™ is 60/100 with 3 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 China Merchants Securities Asset Management Co.,Ltd (FRA:195H), the current ROA % is 2.42% 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 China Merchants Securities Asset Management Co.,Ltd (FRA:195H) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Securities Asset Management Co.,Ltd stock appears to be undervalued.
The current stock price of €1.55 is trading 44.4% below its estimated GF Value™ of €2.79.
Key valuation signals for FRA:195H:
ROA %: 2.42% (31% above median its 10-year median of 1.85)
GF Value™: €2.79 vs. price of €1.55 (44.4% below fair value)
Industry Position: 57.1% above the Capital Markets median (#340 of 811)
No single metric tells the full story. See the FRA:195H stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Securities Asset Management Co.,Ltd is a financial service provider. The company provides services like investment banking, financial advisory, equity underwriting, asset management, investment advisory, and trading equity securities, among others. Its business is divided into four segments: Wealth management and institutional business; Investment banking; Investment management; and Investment and trading. The Wealth management and institutional business segment, which generates key revenue, engages in the trading of stocks and futures contracts on behalf of clients and includes margin financing, securities lending, and selling financial and other wealth management products.
60GF Score
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