Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Royale Home HoldingsHKSE:01198 ROA % is -14.29% as of Dec. 2025. The stock has 9 warning signs investors should review. Among 433 Furnishings, Fixtures & Appliances companies, Royale Home Holdings ranks worse than 91.22% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Royale Home Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$-738.4 Mil.
Royale Home Holdings's average Total Assets over the quarter that ended in Dec. 2025 was HK$5,166.6 Mil. Therefore, Royale Home Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was -14.29%.
The historical rank and industry rank for Royale Home Holdings's ROA % or its related term are showing as below:
HKSE:01198'
s ROA % Range Over the Past 10 Years
Min: -12.88 Med: 1.75 Max: 18.63
Current: -12.66
During the past 13 years, Royale Home Holdings's highest ROA % was 18.63%. The lowest was -12.88%. And the median was 1.75%.
HKSE:01198's ROA % is ranked worse than 91.22% of 433
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 2.21
vs HKSE:01198: -12.66
Royale Home Holdings (HKSE:01198) 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 Furnishings, Fixtures & Appliances subindustry, Royale Home 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.
Royale Home Holdings ROA % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Royale Home Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Royale Home 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.
Royale Home Holdings (HKSE:01198) has a ROA % of -14.29% 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 Royale Home Holdings and its competitors. According to the industry distribution chart, Royale Home Holdings ranks #395 out of 433 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 91.2%.
Is Royale Home Holdings' ROA % too high?
Royale Home Holdings' current ROA % is -14.29%. Based on the distribution chart, Royale Home Holdings ranks #395 out of 433 companies in the Furnishings, Fixtures & Appliances industry, which is in the bottom quartile relative to peers.
How does Royale Home Holdings' ROA % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Royale Home Holdings ranks #395 out of 433 companies for ROA %. This places Royale Home Holdings in the lower half of its industry. The industry median ROA % is 2.21. 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 Furnishings, Fixtures & Appliances company?
The median ROA % among Furnishings, Fixtures & Appliances companies is 2.21, based on 433 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 Royale Home Holdings and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROA % is 2.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royale Home Holdings's current ROA % is -14.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royale Home Holdings stock overvalued right now?
Based on GuruFocus' analysis, Royale Home Holdings (HKSE:01198) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.21, compared to a current price of HK$0.09 — trading 58.6% below its estimated fair value. The current ROA % is -14.29%. 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 Royale Home Holdings (HKSE:01198), the current ROA % is -14.29% 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.
Royale Home Holdings Ltd is an investment holding company. The Company and its subsidiaries were principally engaged in the manufacture and sale of furniture in the Peoples Republic of China. The segments of the company are: a) Manufacture and sale of furniture, b) Development properties for sales and property investments, c) Hotel operations, d) Trading of aluminium ingots and bars. The company generates the majority of its revenue from the Manufacture and sale of furniture. Geographically, it derives revenue from PRC.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:01198 has been successfully added to your 
