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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tao Heung Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$-46 Mil.
Tao Heung Holdings's average Total Assets over the quarter that ended in Dec. 2025 was HK$1,866 Mil. Therefore, Tao Heung Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was -2.46%.
The historical rank and industry rank for Tao Heung Holdings's ROA % or its related term are showing as below:
HKSE:00573'
s ROA % Range Over the Past 10 Years
Min: -5.7 Med: 1.28 Max: 6.8
Current: -3.21
During the past 13 years, Tao Heung Holdings's highest ROA % was 6.80%. The lowest was -5.70%. And the median was 1.28%.
HKSE:00573's ROA % is ranked worse than 74.66% of 363
companies
in the Restaurants industry
Industry Median: 2.25
vs HKSE:00573: -3.21
Tao Heung Holdings (HKSE:00573) 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.
Tao Heung Holdings ROA % Related Terms
Tao Heung Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Tao Heung Holdings'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 Restaurants subindustry, Tao Heung 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.
Tao Heung Holdings ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Tao Heung Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Tao Heung 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.
Tao Heung Holdings (HKSE:00573) has a ROA % of -2.46% 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 Tao Heung Holdings and its competitors. According to the industry distribution chart, Tao Heung Holdings ranks #271 out of 363 companies in the Restaurants industry, placing it in the top 74.7%.
Is Tao Heung Holdings' ROA % too high?
Tao Heung Holdings' current ROA % is -2.46%. Based on the distribution chart, Tao Heung Holdings ranks #271 out of 363 companies in the Restaurants industry, which is below the industry midpoint. Overall, Tao Heung Holdings has a GF Score™ of 40/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tao Heung Holdings' ROA % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Tao Heung Holdings ranks #271 out of 363 companies for ROA %. This places Tao Heung Holdings in the lower half of its industry. The industry median ROA % is 2.25. 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 Restaurants company?
The median ROA % among Restaurants companies is 2.25, based on 363 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. 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 Tao Heung Holdings and its competitors. For the Restaurants industry, the median ROA % is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tao Heung Holdings's current ROA % is -2.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tao Heung Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tao Heung Holdings (HKSE:00573) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.52, compared to a current price of HK$0.27 — trading 48.1% below its estimated fair value. The current ROA % is -2.46%. Tao Heung Holdings' overall GF Score™ is 40/100 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 Tao Heung Holdings (HKSE:00573), the current ROA % is -2.46% 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 Tao Heung Holdings (HKSE:00573) Overvalued in 2026?
Based on GuruFocus' analysis, Tao Heung Holdings stock appears to be undervalued.
The current stock price of HK$0.27 is trading 48.1% below its estimated GF Value™ of HK$0.52.
GuruFocus considers Tao Heung Holdings to be Significantly Undervalued.
Key valuation signals for HKSE:00573:
ROA %: -2.46%
GF Value™: HK$0.52 vs. price of HK$0.27 (48.1% below fair value)
No single metric tells the full story. See the HKSE:00573 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tao Heung Holdings Ltd is a Hong Kong-based company engaged in the provision of food catering services through a chain of restaurants. The company is also engaged in restaurant operations and provision of food catering services, bakery operations, production, sale, and distribution of food products and other items related to restaurant operations and provision of poultry farm operations. The company operates businesses in Hong Kong and Mainland China of which Hong Kong accounts for a majority share of the company's revenue.
40GF Score
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