Kantone HoldingsHKSE:01059 +9.64%52 ROA % is 2.82% as of Dec. 2025, which is 29% above its 10-year median of 2.18. GuruFocus rates HKSE:01059 with a GF Score™ of 52/100 and a GF Value™ of HK$0.25 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,876 Software companies, Kantone Holdings ranks better than 72.53% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kantone Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$8.4 Mil.
Kantone Holdings's average Total Assets over the quarter that ended in Dec. 2025 was HK$299.3 Mil. Therefore, Kantone Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 2.82%.
The historical rank and industry rank for Kantone Holdings's ROA % or its related term are showing as below:
HKSE:01059'
s ROA % Range Over the Past 10 Years
Min: -167.72 Med: 2.18 Max: 9.84
Current: 6.96
During the past 13 years, Kantone Holdings's highest ROA % was 9.84%. The lowest was -167.72%. And the median was 2.18%.
HKSE:01059's ROA % is ranked better than 72.53% of 2876
companies
in the Software industry
Industry Median: 1.675
vs HKSE:01059: 6.96
Kantone Holdings (HKSE:01059) 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.
Kantone Holdings ROA % Related Terms
Kantone Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Kantone 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 Information Technology Services subindustry, Kantone 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.
Kantone Holdings ROA % vs Software Industry
For the Software industry and Technology sector, Kantone Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Kantone 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.
Kantone Holdings (HKSE:01059) has a ROA % of 2.82% 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 Kantone Holdings and its competitors. This is 29% above median its historical median of 2.18. According to the industry distribution chart, Kantone Holdings ranks #790 out of 2876 companies in the Software industry, placing it in the top 27.5%.
Is Kantone Holdings' ROA % too high?
Kantone Holdings' current ROA % of 2.82% is 29% above median its 10-year median of 2.18. The Software industry median ROA % is 1.68. Kantone Holdings' value of 2.82% is 68.4% above this industry median. Based on the distribution chart, Kantone Holdings ranks #790 out of 2876 companies in the Software industry, which is above the industry midpoint. Overall, Kantone Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kantone Holdings' ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Kantone Holdings ranks #790 out of 2876 companies for ROA %. This puts Kantone Holdings in the upper half of its industry. The industry median ROA % is 1.68. Kantone Holdings' value of 2.82% is 68.4% above this benchmark. While the company's 10-year median is 2.18 vs. the industry median of 1.68, Kantone Holdings 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 a Software company?
The median ROA % among Software companies is 1.68, based on 2,876 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. Kantone Holdings's current ROA % of 2.82% is 68.4% 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 Kantone Holdings and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kantone Holdings's current ROA % is 2.82%, which is 29% above median its own 10-year median of 2.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kantone Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kantone Holdings (HKSE:01059) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.46 — trading 82% above its estimated fair value. The current ROA % is 2.82%, which is 29% above median its 10-year median of 2.18 and 68.4% above the Software industry median of 1.68. Kantone Holdings' overall GF Score™ is 52/100 with 4 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 Kantone Holdings (HKSE:01059), the current ROA % is 2.82% 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 Kantone Holdings (HKSE:01059) Overvalued in 2026?
Based on GuruFocus' analysis, Kantone Holdings stock appears to be overvalued.
The current stock price of HK$0.46 is trading 82% above its estimated GF Value™ of HK$0.25.
GuruFocus considers Kantone Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01059:
ROA %: 2.82% (29% above median its 10-year median of 2.18)
GF Value™: HK$0.25 vs. price of HK$0.46 (82% above fair value)
Industry Position: 68.4% above the Software median (#790 of 2876)
No single metric tells the full story. See the HKSE:01059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kantone Holdings Ltd is an investment holding company. The company's operating segment includes Sales of cultural products; Technology: System sales including software licensing and services and Technology: Leasing of system products. It generates maximum revenue from the Technology: System sales including software licensing and services segment. Geographically, it derives a majority of its revenue from Europe (UK and Germany).
52GF Score
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