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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. MECOM Power and Construction's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$-2 Mil.
MECOM Power and Construction's average Total Assets over the quarter that ended in Dec. 2025 was HK$1,183 Mil. Therefore, MECOM Power and Construction's annualized ROA % for the quarter that ended in Dec. 2025 was -0.16%.
The historical rank and industry rank for MECOM Power and Construction's ROA % or its related term are showing as below:
HKSE:01183'
s ROA % Range Over the Past 10 Years
Min: -1.11 Med: 9.38 Max: 21.13
Current: 1.25
During the past 12 years, MECOM Power and Construction's highest ROA % was 21.13%. The lowest was -1.11%. And the median was 9.38%.
HKSE:01183's ROA % is ranked worse than 55.99% of 634
companies
in the Steel industry
Industry Median: 2.01
vs HKSE:01183: 1.25
MECOM Power and Construction (HKSE:01183) 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.
MECOM Power and Construction ROA % Related Terms
MECOM Power and Construction 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.
For the Steel subindustry, MECOM Power and Construction'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.
MECOM Power and Construction ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, MECOM Power and Construction's ROA % distribution charts can be found below:
* The bar in red indicates where MECOM Power and Construction'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.
MECOM Power and Construction (HKSE:01183) has a ROA % of -0.16% 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 MECOM Power and Construction and its competitors. According to the industry distribution chart, MECOM Power and Construction ranks #355 out of 634 companies in the Steel industry, placing it in the top 56%.
Is MECOM Power and Construction's ROA % too high?
MECOM Power and Construction's current ROA % is -0.16%. Based on the distribution chart, MECOM Power and Construction ranks #355 out of 634 companies in the Steel industry, which is below the industry midpoint. Overall, MECOM Power and Construction has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MECOM Power and Construction's ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, MECOM Power and Construction ranks #355 out of 634 companies for ROA %. This places MECOM Power and Construction in the lower half of its industry. The industry median ROA % is 2.01. 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 Steel company?
The median ROA % among Steel companies is 2.01, based on 634 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 MECOM Power and Construction and its competitors. For the Steel industry, the median ROA % is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MECOM Power and Construction's current ROA % is -0.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MECOM Power and Construction stock overvalued right now?
Based on GuruFocus' analysis, MECOM Power and Construction (HKSE:01183) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.23, compared to a current price of HK$0.14 — trading 41.3% below its estimated fair value. The current ROA % is -0.16%. MECOM Power and Construction's overall GF Score™ is 65/100 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 MECOM Power and Construction (HKSE:01183), the current ROA % is -0.16% 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 MECOM Power and Construction (HKSE:01183) Overvalued in 2026?
Based on GuruFocus' analysis, MECOM Power and Construction stock appears to be undervalued.
The current stock price of HK$0.14 is trading 41.3% below its estimated GF Value™ of HK$0.23.
GuruFocus considers MECOM Power and Construction to be Significantly Undervalued.
Key valuation signals for HKSE:01183:
ROA %: -0.16%
GF Value™: HK$0.23 vs. price of HK$0.14 (41.3% below fair value)
No single metric tells the full story. See the HKSE:01183 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MECOM Power and Construction Ltd is a construction company engaged in construction of power substation and structural steelworks. Its scope covers steel structures business, including research and development and sales of new construction materials; construction business, including construction and fitting out works, high voltage power substation construction and its system installation works, E&M engineering services works, facilities management and operation and maintenance services, construction, operation and maintenance of data centres; and electric vehicles related services. Its segments are: Construction business, Electric vehicles business, and Intelligent manufacturing business. It derives maximum revenue from Intelligent manufacturing business.
65GF Score
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ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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