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China Conch Environment Protection Holdings (HKSE:00587) 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.
China Conch Environment Protection Holdings ROA % Related Terms
China Conch Environment Protection Holdings 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.
China Conch Environment Protection Holdings ROA % Chart
China Conch Environment Protection Holdings Annual Data
* 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.
China Conch Environment Protection Holdings ROA % vs Waste Management Industry
* 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.
China Conch Environment Protection Holdings (HKSE:00587) has a ROA % of -4.88% 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 China Conch Environment Protection Holdings and its competitors. According to the industry distribution chart, China Conch Environment Protection Holdings ranks #174 out of 247 companies in the Waste Management industry, placing it in the top 70.4%.
Is China Conch Environment Protection Holdings' ROA % too high?
China Conch Environment Protection Holdings' current ROA % is -4.88%. Based on the distribution chart, China Conch Environment Protection Holdings ranks #174 out of 247 companies in the Waste Management industry, which is below the industry midpoint. Overall, China Conch Environment Protection Holdings has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Conch Environment Protection Holdings' ROA % compare to WM and RSG?
According to the Waste Management industry distribution chart, China Conch Environment Protection Holdings ranks #174 out of 247 companies for ROA %. This places China Conch Environment Protection Holdings in the lower half of its industry. The industry median ROA % is 1.92. 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 Waste Management company?
The median ROA % among Waste Management companies is 1.92, based on 247 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 China Conch Environment Protection Holdings and its competitors. For the Waste Management industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Conch Environment Protection Holdings's current ROA % is -4.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Conch Environment Protection Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Conch Environment Protection Holdings (HKSE:00587) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.94, compared to a current price of HK$0.27 — trading 71.3% below its estimated fair value. The current ROA % is -4.88%. China Conch Environment Protection Holdings' overall GF Score™ is 57/100 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 China Conch Environment Protection Holdings (HKSE:00587), the current ROA % is -4.88% 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 China Conch Environment Protection Holdings (HKSE:00587) Overvalued in 2026?
Based on GuruFocus' analysis, China Conch Environment Protection Holdings stock appears to be undervalued.
The current stock price of HK$0.27 is trading 71.3% below its estimated GF Value™ of HK$0.94.
GuruFocus considers China Conch Environment Protection Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00587:
ROA %: -4.88%
GF Value™: HK$0.94 vs. price of HK$0.27 (71.3% below fair value)
No single metric tells the full story. See the HKSE:00587 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Conch Environment Protection Holdings Ltd provides treatment solutions for industrial solid waste and hazardous waste, utilizing cement kiln waste treatment technologies in People's Republic of China. The company operates in a single segment of providing industrial solid waste and hazardous waste treatment services. It derives revenue from Industrial hazardous waste treatment services which includes general hazardous waste, oil sludge, fly ash, industrial solid waste treatment services, and Comprehensive resource utilization. Geographically, its revenue is derived from the PRC.
57GF Score
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