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Perennial InternationalHKSE:00725 -1.03%51 ROA % is 5.11% as of Dec. 2025, which is 97% above its 10-year median of 2.59. GuruFocus rates HKSE:00725 with a GF Score™ of 51/100 and a GF Value™ of HK$0.79 (Modestly Overvalued). Among 3,073 Industrial Products companies, Perennial International ranks better than 70.94% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Perennial International's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$27.0 Mil.
Perennial International's average Total Assets over the quarter that ended in Dec. 2025 was HK$528.4 Mil. Therefore, Perennial International's annualized ROA % for the quarter that ended in Dec. 2025 was 5.11%.
The historical rank and industry rank for Perennial International's ROA % or its related term are showing as below:
HKSE:00725'
s ROA % Range Over the Past 10 Years
Min: -2.75 Med: 2.59 Max: 6.03
Current: 6.03
During the past 13 years, Perennial International's highest ROA % was 6.03%. The lowest was -2.75%. And the median was 2.59%.
HKSE:00725's ROA % is ranked better than 70.94% of 3073
companies
in the Industrial Products industry
Industry Median: 3.06
vs HKSE:00725: 6.03
Perennial International (HKSE:00725) 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.
For the Electrical Equipment & Parts subindustry, Perennial International'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.
Perennial International ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Perennial International's ROA % distribution charts can be found below:
* The bar in red indicates where Perennial International'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.
Perennial International (HKSE:00725) has a ROA % of 5.11% 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 Perennial International and its competitors. This is 97% above median its historical median of 2.59. According to the industry distribution chart, Perennial International ranks #893 out of 3073 companies in the Industrial Products industry, placing it in the top 29.1%.
Is Perennial International's ROA % too high?
Perennial International's current ROA % of 5.11% is 97% above median its 10-year median of 2.59. The Industrial Products industry median ROA % is 3.06. Perennial International's value of 5.11% is 67% above this industry median. Based on the distribution chart, Perennial International ranks #893 out of 3073 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Perennial International has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Perennial International's ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Perennial International ranks #893 out of 3073 companies for ROA %. This puts Perennial International in the upper half of its industry. The industry median ROA % is 3.06. Perennial International's value of 5.11% is 67% above this benchmark. While the company's 10-year median is 2.59 vs. the industry median of 3.06, Perennial International 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,073 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. Perennial International's current ROA % of 5.11% is 67% 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 Perennial International and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perennial International's current ROA % is 5.11%, which is 97% above median its own 10-year median of 2.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perennial International stock overvalued right now?
Based on GuruFocus' analysis, Perennial International (HKSE:00725) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.79, compared to a current price of HK$0.96 — trading 21.5% above its estimated fair value. The current ROA % is 5.11%, which is 97% above median its 10-year median of 2.59 and 67% above the Industrial Products industry median of 3.06. Perennial International's overall GF Score™ is 51/100. 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 Perennial International (HKSE:00725), the current ROA % is 5.11% 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 Perennial International (HKSE:00725) Overvalued in 2026?
Based on GuruFocus' analysis, Perennial International stock appears to be overvalued.
The current stock price of HK$0.96 is trading 21.5% above its estimated GF Value™ of HK$0.79.
GuruFocus considers Perennial International to be Modestly Overvalued.
Key valuation signals for HKSE:00725:
ROA %: 5.11% (97% above median its 10-year median of 2.59)
GF Value™: HK$0.79 vs. price of HK$0.96 (21.5% above fair value)
Industry Position: 67% above the Industrial Products median (#893 of 3073)
No single metric tells the full story. See the HKSE:00725 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perennial International Ltd is investment holding. Its subsidiaries are principally engaged in the manufacturing and trading of electric cable and wire products. Geographically the company generates revenue from Hong Kong, The PRC, America, Vietnam, Japan, and Other countries. The majority of the company's revenue is earned in America.
51GF Score
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