Hongkong Land HoldingsHKHGF 51 ROA % is 5.30% as of Dec. 2025, which is 1052% above its 10-year median of 0.46. GuruFocus rates HKHGF with a GF Score™ of 51/100 and a GF Value™ of $3.19 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,804 Real Estate companies, Hongkong Land Holdings ranks better than 65.58% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hongkong Land Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was $2,085 Mil.
Hongkong Land Holdings's average Total Assets over the quarter that ended in Dec. 2025 was $39,359 Mil. Therefore, Hongkong Land Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 5.30%.
The historical rank and industry rank for Hongkong Land Holdings's ROA % or its related term are showing as below:
HKHGF'
s ROA % Range Over the Past 10 Years
Min: -5.91 Med: 0.46 Max: 14.13
Current: 3.22
During the past 13 years, Hongkong Land Holdings's highest ROA % was 14.13%. The lowest was -5.91%. And the median was 0.46%.
HKHGF's ROA % is ranked better than 65.58% of 1804
companies
in the Real Estate industry
Industry Median: 1.7
vs HKHGF: 3.22
Hongkong Land Holdings (OTCPK:HKHGF) 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.
* 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.
Hongkong Land Holdings ROA % Competitor Comparison
For the Real Estate - Development subindustry, Hongkong Land 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.
Hongkong Land Holdings ROA % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Hongkong Land Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Hongkong Land 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.
Hongkong Land Holdings (HKHGF) has a ROA % of 5.30% 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 Hongkong Land Holdings and its competitors. This is 1052% above median its historical median of 0.46. According to the industry distribution chart, Hongkong Land Holdings ranks #621 out of 1804 companies in the Real Estate industry, placing it in the top 34.4%.
Is Hongkong Land Holdings' ROA % too high?
Hongkong Land Holdings' current ROA % of 5.30% is 1052% above median its 10-year median of 0.46. The Real Estate industry median ROA % is 1.70. Hongkong Land Holdings' value of 5.30% is 211.8% above this industry median. Based on the distribution chart, Hongkong Land Holdings ranks #621 out of 1804 companies in the Real Estate industry, which is above the industry midpoint. Overall, Hongkong Land Holdings has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongkong Land Holdings' ROA % compare to competitors?
According to the Real Estate industry distribution chart, Hongkong Land Holdings ranks #621 out of 1804 companies for ROA %. This puts Hongkong Land Holdings in the upper half of its industry. The industry median ROA % is 1.70. Hongkong Land Holdings' value of 5.30% is 211.8% above this benchmark. While the company's 10-year median is 0.46 vs. the industry median of 1.70, Hongkong Land Holdings 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 Real Estate company?
The median ROA % among Real Estate companies is 1.70, based on 1,804 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. Hongkong Land Holdings's current ROA % of 5.30% is 211.8% 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 Hongkong Land Holdings and its competitors. For the Real Estate industry, the median ROA % is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongkong Land Holdings's current ROA % is 5.30%, which is 1052% above median its own 10-year median of 0.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongkong Land Holdings stock overvalued right now?
Based on GuruFocus' analysis, Hongkong Land Holdings (HKHGF) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.19, compared to a current price of $7.97 — trading 149.8% above its estimated fair value. The current ROA % is 5.30%, which is 1052% above median its 10-year median of 0.46 and 211.8% above the Real Estate industry median of 1.70. Hongkong Land Holdings' overall GF Score™ is 51/100 with 7 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 Hongkong Land Holdings (HKHGF), the current ROA % is 5.30% 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 Hongkong Land Holdings (HKHGF) Overvalued in 2026?
Based on GuruFocus' analysis, Hongkong Land Holdings stock appears to be overvalued.
The current stock price of $7.97 is trading 149.8% above its estimated GF Value™ of $3.19.
GuruFocus considers Hongkong Land Holdings to be Significantly Overvalued.
Key valuation signals for HKHGF:
ROA %: 5.30% (1052% above median its 10-year median of 0.46)
GF Value™: $3.19 vs. price of $7.97 (149.8% above fair value)
Industry Position: 211.8% above the Real Estate median (#621 of 1804)
No single metric tells the full story. See the HKHGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongkong Land is a property investor focusing on holding prime commercial assets in Hong Kong, mainland China, and Singapore. It is the largest office landlord in Hong Kong's Central Business District, and the second largest in Hong Kong overall. The Central portfolio includes 4.0 million square feet of office space and 0.5 million square feet of retail area. The company is also expanding its fund management business to build a recurring stream of fee income. Hongkong Land is dual listed on the London Stock Exchange and the Singapore Exchange. Jardine Matheson Holdings owns 53% of the company.
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