HEQ's ROA % is ranked better than 79.02% of 1635
companies
in the Asset Management industry
Industry Median: 3.97
vs HEQ: 13.00
John Hancock Hedged Equity &ome Fund (NYSE:HEQ) 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.
John Hancock Hedged Equity &ome Fund ROA % Related Terms
John Hancock Hedged Equity &ome Fund 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 Asset Management subindustry, John Hancock Hedged Equity &ome Fund'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.
John Hancock Hedged Equity &ome Fund ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, John Hancock Hedged Equity &ome Fund's ROA % distribution charts can be found below:
* The bar in red indicates where John Hancock Hedged Equity &ome Fund'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.
John Hancock Hedged Equity &ome Fund (HEQ) has a ROA % of 13.83% 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 John Hancock Hedged Equity &ome Fund and its competitors. This is 60% above median its historical median of 8.64. According to the industry distribution chart, John Hancock Hedged Equity &ome Fund ranks #343 out of 1635 companies in the Asset Management industry, placing it in the top 21%.
Is John Hancock Hedged Equity &ome Fund's ROA % too high?
John Hancock Hedged Equity &ome Fund's current ROA % of 13.83% is 60% above median its 10-year median of 8.64. The Asset Management industry median ROA % is 3.97. John Hancock Hedged Equity &ome Fund's value of 13.83% is 248.4% above this industry median. Based on the distribution chart, John Hancock Hedged Equity &ome Fund ranks #343 out of 1635 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, John Hancock Hedged Equity &ome Fund has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does John Hancock Hedged Equity &ome Fund's ROA % compare to WHF and EVG?
According to the Asset Management industry distribution chart, John Hancock Hedged Equity &ome Fund ranks #343 out of 1635 companies for ROA %. This places John Hancock Hedged Equity &ome Fund in the top 21% of its industry — outperforming the majority of peers. The industry median ROA % is 3.97. John Hancock Hedged Equity &ome Fund's value of 13.83% is 248.4% above this benchmark. While the company's 10-year median is 8.64 vs. the industry median of 3.97, John Hancock Hedged Equity &ome Fund 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 an Asset Management company?
The median ROA % among Asset Management companies is 3.97, based on 1,635 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. John Hancock Hedged Equity &ome Fund's current ROA % of 13.83% is 248.4% 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 John Hancock Hedged Equity &ome Fund and its competitors. For the Asset Management industry, the median ROA % is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. John Hancock Hedged Equity &ome Fund's current ROA % is 13.83%, which is 60% above median its own 10-year median of 8.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is John Hancock Hedged Equity &ome Fund stock overvalued right now?
Based on GuruFocus' analysis, John Hancock Hedged Equity &ome Fund (HEQ) is currently considered Modestly Undervalued. The stock's GF Value™ is $15.52, compared to a current price of $11.18 — trading 28% below its estimated fair value. The current ROA % is 13.83%, which is 60% above median its 10-year median of 8.64 and 248.4% above the Asset Management industry median of 3.97. John Hancock Hedged Equity &ome Fund's overall GF Score™ is 57/100 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 John Hancock Hedged Equity &ome Fund (HEQ), the current ROA % is 13.83% 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 John Hancock Hedged Equity &ome Fund (HEQ) Overvalued in 2026?
Based on GuruFocus' analysis, John Hancock Hedged Equity &ome Fund stock appears to be undervalued.
The current stock price of $11.18 is trading 28% below its estimated GF Value™ of $15.52.
GuruFocus considers John Hancock Hedged Equity &ome Fund to be Modestly Undervalued.
Key valuation signals for HEQ:
ROA %: 13.83% (60% above median its 10-year median of 8.64)
GF Value™: $15.52 vs. price of $11.18 (28% below fair value)
Industry Position: 248.4% above the Asset Management median (#343 of 1635)
No single metric tells the full story. See the HEQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
John Hancock Hedged Equity &ome Fund Business Description
John Hancock Hedged Equity & Income Fund is a closed-end management investment company. Its investment objective is to provide total return, with a focus on current income and gains, and to include long-term capital appreciation. It invests in various sectors such as financials, consumer discretionary, information technology, energy, healthcare, materials, real estate, consumer staples, short-term investments, and others.
57GF Score
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