AMTD DigitalHKD +1.92%64 ROA % is 5.96% as of Oct. 2025, which is 13% below its 10-year median of 6.83. GuruFocus rates HKD with a GF Score™ of 64/100 and a GF Value™ of $4.76 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 2,885 Software companies, AMTD Digital ranks better than 72.37% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. AMTD Digital's annualizedNet Income for the quarter that ended in Oct. 2025 was $55.27 Mil.
AMTD Digital's average Total Assets over the quarter that ended in Oct. 2025 was $927.24 Mil. Therefore, AMTD Digital's annualized ROA % for the quarter that ended in Oct. 2025 was 5.96%.
The historical rank and industry rank for AMTD Digital's ROA % or its related term are showing as below:
HKD'
s ROA % Range Over the Past 10 Years
Min: 0.3 Med: 6.83 Max: 9.41
Current: 6.96
During the past 7 years, AMTD Digital's highest ROA % was 9.41%. The lowest was 0.30%. And the median was 6.83%.
HKD's ROA % is ranked better than 72.37% of 2885
companies
in the Software industry
Industry Median: 1.68
vs HKD: 6.96
AMTD Digital (NYSE:HKD) 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 (Oct. 2025) net income data. The Revenue data used here is two times the semi-annual (Oct. 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.
AMTD Digital ROA % Related Terms
AMTD Digital ROA % Historical Data
* Premium members only.
The historical data trend for AMTD Digital'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 Software - Application subindustry, AMTD Digital'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.
AMTD Digital ROA % vs Software Industry
For the Software industry and Technology sector, AMTD Digital's ROA % distribution charts can be found below:
* The bar in red indicates where AMTD Digital'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 (Oct. 2025) net income data.
ROA % is displayed in the 30-year financial page.
AMTD Digital (HKD) has a ROA % of 5.96% as of Oct. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on AMTD Digital and its competitors. This is 13% below median its historical median of 6.83. Over the past decade, AMTD Digital's ROA % has ranged from 0.30 to 9.41. According to the industry distribution chart, AMTD Digital ranks #797 out of 2885 companies in the Software industry, placing it in the top 27.6%.
Is AMTD Digital's ROA % too high?
AMTD Digital's current ROA % of 5.96% is 13% below median its 10-year median of 6.83. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 9.41. The Software industry median ROA % is 1.68. AMTD Digital's value of 5.96% is 254.8% above this industry median. Based on the distribution chart, AMTD Digital ranks #797 out of 2885 companies in the Software industry, which is above the industry midpoint. Overall, AMTD Digital has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AMTD Digital's ROA % compare to CRNC and PUBM?
According to the Software industry distribution chart, AMTD Digital ranks #797 out of 2885 companies for ROA %. This puts AMTD Digital in the upper half of its industry. The industry median ROA % is 1.68. AMTD Digital's value of 5.96% is 254.8% above this benchmark. Historically, AMTD Digital's own ROA % has ranged from 0.30 to 9.41 over the past decade. While the company's 10-year median is 6.83 vs. the industry median of 1.68, AMTD Digital 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 Software company?
The median ROA % among Software companies is 1.68, based on 2,885 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. AMTD Digital's current ROA % of 5.96% is 254.8% 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 AMTD Digital and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AMTD Digital's current ROA % is 5.96%, which is 13% below median its own 10-year median of 6.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AMTD Digital stock overvalued right now?
Based on GuruFocus' analysis, AMTD Digital (HKD) is currently considered Possible Value Trap. The stock's GF Value™ is $4.76, compared to a current price of $1.59 — trading 66.6% below its estimated fair value. The current ROA % is 5.96%, which is 13% below median its 10-year median of 6.83 and 254.8% above the Software industry median of 1.68. AMTD Digital's overall GF Score™ is 64/100 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 AMTD Digital (HKD), the current ROA % is 5.96% as of Oct. 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 AMTD Digital (HKD) Overvalued in 2026?
Based on GuruFocus' analysis, AMTD Digital stock appears to be undervalued.
The current stock price of $1.59 is trading 66.6% below its estimated GF Value™ of $4.76.
GuruFocus considers AMTD Digital to be Possible Value Trap.
Key valuation signals for HKD:
ROA %: 5.96% (13% below median its 10-year median of 6.83)
GF Value™: $4.76 vs. price of $1.59 (66.6% below fair value)
Industry Position: 254.8% above the Software median (#797 of 2885)
No single metric tells the full story. See the HKD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AMTD Digital Inc along with its subsidiaries, is mainly involved in the provision of digital solutions services. Its reportable segments are digital solutions services segment; hotel operations, hospitality and VIP services segment; media and entertainment services segment; and Strategic investments. The company generates maximum revenue from Digital solutions services segment, which provides its institutional and corporate clients with exclusive, paid access to enhance their investor communication, investor relations and corporate communication to potentially maximize their valuation, as well as providing digital solution services. Geographically, the company generates revenue from China, Hong Kong, Europe, Americas and Southeast Asia.
64GF Score
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