Hong Leong AsiaFRA:HOM -3.68%60 ROA % is 1.71% as of Dec. 2025, which is 88% above its 10-year median of 0.91. GuruFocus rates FRA:HOM with a GF Score™ of 60/100 and a GF Value™ of €0.67 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,335 Vehicles & Parts companies, Hong Leong Asia ranks worse than 61.05% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hong Leong Asia's annualizedNet Income for the quarter that ended in Dec. 2025 was €75 Mil.
Hong Leong Asia's average Total Assets over the quarter that ended in Dec. 2025 was €4,408 Mil. Therefore, Hong Leong Asia's annualized ROA % for the quarter that ended in Dec. 2025 was 1.71%.
The historical rank and industry rank for Hong Leong Asia's ROA % or its related term are showing as below:
FRA:HOM'
s ROA % Range Over the Past 10 Years
Min: -1.46 Med: 0.91 Max: 1.81
Current: 1.78
During the past 13 years, Hong Leong Asia's highest ROA % was 1.81%. The lowest was -1.46%. And the median was 0.91%.
FRA:HOM's ROA % is ranked worse than 61.05% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs FRA:HOM: 1.78
Hong Leong Asia (FRA:HOM) 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.
Hong Leong Asia ROA % Related Terms
Hong Leong Asia ROA % Historical Data
* Premium members only.
The historical data trend for Hong Leong Asia'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 Auto Manufacturers subindustry, Hong Leong Asia'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.
Hong Leong Asia ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hong Leong Asia's ROA % distribution charts can be found below:
* The bar in red indicates where Hong Leong Asia'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.
Hong Leong Asia (FRA:HOM) has a ROA % of 1.71% 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 Hong Leong Asia and its competitors. This is 88% above median its historical median of 0.91. According to the industry distribution chart, Hong Leong Asia ranks #815 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 61%.
Is Hong Leong Asia's ROA % too high?
Hong Leong Asia's current ROA % of 1.71% is 88% above median its 10-year median of 0.91. The Vehicles & Parts industry median ROA % is 2.95. Hong Leong Asia's value of 1.71% is 42% below this industry median. Based on the distribution chart, Hong Leong Asia ranks #815 out of 1335 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Hong Leong Asia has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Asia's ROA % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Hong Leong Asia ranks #815 out of 1335 companies for ROA %. This places Hong Leong Asia in the lower half of its industry. The industry median ROA % is 2.95. Hong Leong Asia's value of 1.71% is 42% below this benchmark. While the company's 10-year median is 0.91 vs. the industry median of 2.95, Hong Leong Asia 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 2.95, based on 1,335 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. Hong Leong Asia's current ROA % of 1.71% is 42% 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 Hong Leong Asia and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Asia's current ROA % is 1.71%, which is 88% above median its own 10-year median of 0.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Asia stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Asia (FRA:HOM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.67, compared to a current price of €1.83 — trading 173.1% above its estimated fair value. The current ROA % is 1.71%, which is 88% above median its 10-year median of 0.91 and 42% below the Vehicles & Parts industry median of 2.95. Hong Leong Asia'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 Hong Leong Asia (FRA:HOM), the current ROA % is 1.71% 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 Hong Leong Asia (FRA:HOM) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Asia stock appears to be overvalued.
The current stock price of €1.83 is trading 173.1% above its estimated GF Value™ of €0.67.
GuruFocus considers Hong Leong Asia to be Significantly Overvalued.
Key valuation signals for FRA:HOM:
ROA %: 1.71% (88% above median its 10-year median of 0.91)
GF Value™: €0.67 vs. price of €1.83 (173.1% above fair value)
Industry Position: 42% below the Vehicles & Parts median (#815 of 1335)
No single metric tells the full story. See the FRA:HOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Asia Ltd is the industrial manufacturing and distribution division of Hong Leong Group Singapore. It operates as the diversified industrial conglomerate in China and Southeast Asia. Its reportable segments are Powertrain solutions: engines for on-road, off-road, genset and marine applications. and Building materials: cement, precast concrete products, ready-mix concrete and quarry products. Geographically it derives key revenue from China.
60GF Score
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