GUOTF's ROA % is ranked worse than 56.99% of 816
companies
in the Capital Markets industry
Industry Median: 1.5
vs GUOTF: 0.99
Guotai Junan International Holdings (OTCPK:GUOTF) 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.
Guotai Junan International Holdings ROA % Related Terms
Guotai Junan International Holdings 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.
For the Capital Markets subindustry, Guotai Junan International 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.
Guotai Junan International Holdings ROA % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Guotai Junan International Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Guotai Junan International 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 two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Guotai Junan International Holdings (GUOTF) has a ROA % of 1.16% 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 Guotai Junan International Holdings and its competitors. This is 20% above median its historical median of 0.97. Over the past decade, Guotai Junan International Holdings' ROA % has ranged from 0.08 to 2.49. According to the industry distribution chart, Guotai Junan International Holdings ranks #465 out of 816 companies in the Capital Markets industry, placing it in the top 57%.
Is Guotai Junan International Holdings' ROA % too high?
Guotai Junan International Holdings' current ROA % of 1.16% is 20% above median its 10-year median of 0.97. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 2.49. The Capital Markets industry median ROA % is 1.50. Guotai Junan International Holdings' value of 1.16% is 22.7% below this industry median. Based on the distribution chart, Guotai Junan International Holdings ranks #465 out of 816 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Guotai Junan International Holdings has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Guotai Junan International Holdings' ROA % compare to MS and GS?
According to the Capital Markets industry distribution chart, Guotai Junan International Holdings ranks #465 out of 816 companies for ROA %. This places Guotai Junan International Holdings in the lower half of its industry. The industry median ROA % is 1.50. Guotai Junan International Holdings' value of 1.16% is 22.7% below this benchmark. Historically, Guotai Junan International Holdings' own ROA % has ranged from 0.08 to 2.49 over the past decade. While the company's 10-year median is 0.97 vs. the industry median of 1.50, Guotai Junan International Holdings 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 Capital Markets company?
The median ROA % among Capital Markets companies is 1.50, based on 816 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. Guotai Junan International Holdings's current ROA % of 1.16% is 22.7% 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 Guotai Junan International Holdings and its competitors. For the Capital Markets industry, the median ROA % is 1.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guotai Junan International Holdings's current ROA % is 1.16%, which is 20% above median its own 10-year median of 0.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guotai Junan International Holdings stock overvalued right now?
Guotai Junan International Holdings (GUOTF) has a current ROA % of 1.16%. The stock's GF Value™ is $0.30, compared to a current price of $0.33 — trading 10% above its estimated fair value. The current ROA % is 1.16%, which is 20% above median its 10-year median of 0.97 and 22.7% below the Capital Markets industry median of 1.50. Guotai Junan International Holdings' overall GF Score™ is 79/100 with 8 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 Guotai Junan International Holdings (GUOTF), the current ROA % is 1.16% 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 Guotai Junan International Holdings (GUOTF) Overvalued in 2026?
Based on GuruFocus' analysis, Guotai Junan International Holdings stock appears to be overvalued.
The current stock price of $0.33 is trading 10% above its estimated GF Value™ of $0.30.
Key valuation signals for GUOTF:
ROA %: 1.16% (20% above median its 10-year median of 0.97)
GF Value™: $0.30 vs. price of $0.33 (10% above fair value)
Industry Position: 22.7% below the Capital Markets median (#465 of 816)
No single metric tells the full story. See the GUOTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guotai Junan International Holdings Business Description
Guotai Junan International Holdings Ltd is an investment holding company engaged in a range of financial services. Its operating segments comprise Wealth Management, which provides brokerage, margin financing, and related services to individuals, SMEs, and family offices; Institutional Investor Services, which include market making, structured products, and financing solutions for corporations and financial institutions; Corporate Finance Services, which offer advisory, placing, and underwriting services for debt and equity securities; Investment Management, which provides asset and fund management along with investments in financial instruments; and Others, which mainly includes rental income and information channel services. The Company derives the majority of its revenue from Hong Kong.
79GF Score
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