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Universe Entertainment And Culture Group Co (HKSE:01046) 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.
Universe Entertainment And Culture Group Co ROA % Related Terms
Universe Entertainment And Culture Group Co 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.
Universe Entertainment And Culture Group Co ROA % Chart
Universe Entertainment And Culture Group Co 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.
Universe Entertainment And Culture Group Co ROA % vs Media - Diversified 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.
Universe Entertainment And Culture Group Co (HKSE:01046) has a ROA % of -4.53% 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 Universe Entertainment And Culture Group Co and its competitors. According to the industry distribution chart, Universe Entertainment And Culture Group Co ranks #544 out of 1032 companies in the Media - Diversified industry, placing it in the top 52.7%.
Is Universe Entertainment And Culture Group Co's ROA % too high?
Universe Entertainment And Culture Group Co's current ROA % is -4.53%. Based on the distribution chart, Universe Entertainment And Culture Group Co ranks #544 out of 1032 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Universe Entertainment And Culture Group Co has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universe Entertainment And Culture Group Co's ROA % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universe Entertainment And Culture Group Co ranks #544 out of 1032 companies for ROA %. This places Universe Entertainment And Culture Group Co in the lower half of its industry. The industry median ROA % is 0.77. 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 Media - Diversified company?
The median ROA % among Media - Diversified companies is 0.77, based on 1,032 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 Universe Entertainment And Culture Group Co and its competitors. For the Media - Diversified industry, the median ROA % is 0.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universe Entertainment And Culture Group Co's current ROA % is -4.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universe Entertainment And Culture Group Co stock overvalued right now?
Based on GuruFocus' analysis, Universe Entertainment And Culture Group Co (HKSE:01046) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.35, compared to a current price of HK$1.03 — trading 192.9% above its estimated fair value. The current ROA % is -4.53%. Universe Entertainment And Culture Group Co's overall GF Score™ is 49/100 with 6 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 Universe Entertainment And Culture Group Co (HKSE:01046), the current ROA % is -4.53% 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 Universe Entertainment And Culture Group Co (HKSE:01046) Overvalued in 2026?
Based on GuruFocus' analysis, Universe Entertainment And Culture Group Co stock appears to be overvalued.
The current stock price of HK$1.03 is trading 192.9% above its estimated GF Value™ of HK$0.35.
GuruFocus considers Universe Entertainment And Culture Group Co to be Significantly Overvalued.
Key valuation signals for HKSE:01046:
ROA %: -4.53%
GF Value™: HK$0.35 vs. price of HK$1.03 (192.9% above fair value)
No single metric tells the full story. See the HKSE:01046 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universe Entertainment And Culture Group Co Ltd is an investment holding company. Along with its subsidiaries, the company operates in the following reportable segments; Video distribution, film distribution and exhibition, licensing and sublicensing of film rights; Trading, wholesaling, and retailing of optical products and watches products; Leasing of investment properties; Securities investments; Financial printing services; and Others. Geographically, it derives key revenue from Hong Kong, and the rest from the People's Republic of China, Other Asian countries, and other regions. The company generates maximum revenue from Video distribution, film distribution and exhibition, licensing, and sublicensing of film rights segment.
49GF Score
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