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Magnificent Hotel InvestmentsHKSE:00201 +1.56% ROA % is 0.94% as of Dec. 2025, which is 14% below its 10-year median of 1.09. The stock has 6 warning signs investors should review. Among 857 Travel & Leisure companies, Magnificent Hotel Investments ranks worse than 65.69% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Magnificent Hotel Investments's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$46.8 Mil.
Magnificent Hotel Investments's average Total Assets over the quarter that ended in Dec. 2025 was HK$5,001.5 Mil. Therefore, Magnificent Hotel Investments's annualized ROA % for the quarter that ended in Dec. 2025 was 0.94%.
The historical rank and industry rank for Magnificent Hotel Investments's ROA % or its related term are showing as below:
HKSE:00201'
s ROA % Range Over the Past 10 Years
Min: -4.51 Med: 1.09 Max: 12.2
Current: 0.16
During the past 13 years, Magnificent Hotel Investments's highest ROA % was 12.20%. The lowest was -4.51%. And the median was 1.09%.
HKSE:00201's ROA % is ranked worse than 65.69% of 857
companies
in the Travel & Leisure industry
Industry Median: 2.4
vs HKSE:00201: 0.16
Magnificent Hotel Investments (HKSE:00201) 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.
Magnificent Hotel Investments ROA % Related Terms
Magnificent Hotel Investments 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 Lodging subindustry, Magnificent Hotel Investments'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.
Magnificent Hotel Investments ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Magnificent Hotel Investments's ROA % distribution charts can be found below:
* The bar in red indicates where Magnificent Hotel Investments'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.
Magnificent Hotel Investments (HKSE:00201) has a ROA % of 0.94% 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 Magnificent Hotel Investments and its competitors. This is 14% below median its historical median of 1.09. According to the industry distribution chart, Magnificent Hotel Investments ranks #563 out of 857 companies in the Travel & Leisure industry, placing it in the top 65.7%.
Is Magnificent Hotel Investments' ROA % too high?
Magnificent Hotel Investments' current ROA % of 0.94% is 14% below median its 10-year median of 1.09. The Travel & Leisure industry median ROA % is 2.40. Magnificent Hotel Investments' value of 0.94% is 60.8% below this industry median. Based on the distribution chart, Magnificent Hotel Investments ranks #563 out of 857 companies in the Travel & Leisure industry, which is below the industry midpoint.
How does Magnificent Hotel Investments' ROA % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Magnificent Hotel Investments ranks #563 out of 857 companies for ROA %. This places Magnificent Hotel Investments in the lower half of its industry. The industry median ROA % is 2.40. Magnificent Hotel Investments' value of 0.94% is 60.8% below this benchmark. While the company's 10-year median is 1.09 vs. the industry median of 2.40, Magnificent Hotel Investments 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 Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.40, based on 857 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. Magnificent Hotel Investments's current ROA % of 0.94% is 60.8% 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 Magnificent Hotel Investments and its competitors. For the Travel & Leisure industry, the median ROA % is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magnificent Hotel Investments's current ROA % is 0.94%, which is 14% below median its own 10-year median of 1.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magnificent Hotel Investments stock overvalued right now?
Based on GuruFocus' analysis, Magnificent Hotel Investments (HKSE:00201) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.09, compared to a current price of HK$0.07 — trading 27.8% below its estimated fair value. The current ROA % is 0.94%, which is 14% below median its 10-year median of 1.09 and 60.8% below the Travel & Leisure industry median of 2.40. 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 Magnificent Hotel Investments (HKSE:00201), the current ROA % is 0.94% 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.
Magnificent Hotel Investments Ltd is an investment holding company. Along with its subsidiaries, it is engaged in the following businesses: investment and operation of hotels (Hospitality services), property investment, and securities investment. The majority of its revenue is derived from the Hospitality services business, which includes income generated from the operation of hotels like Best Western Plus Kowloon, Magnificent International Hotel, Best Western Hotel Causeway Bay, Ramada Hong Kong Grand, Wood Street Hotel, Grand Bay View Hotel, and others. Geographically, the Group generates maximum revenue from Hong Kong, and the rest from the People's Republic of China (PRC) and the United Kingdom.
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