HKSE:01428's ROA % is ranked better than 80.68% of 818
companies
in the Capital Markets industry
Industry Median: 1.505
vs HKSE:01428: 7.32
Bright Smart Securitiesmmodities Group (HKSE:01428) 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 (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 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.
Bright Smart Securitiesmmodities Group ROA % Related Terms
Bright Smart Securitiesmmodities Group 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.
Bright Smart Securitiesmmodities Group ROA % Chart
Bright Smart Securitiesmmodities Group Annual Data
For the Capital Markets subindustry, Bright Smart Securitiesmmodities Group'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.
Bright Smart Securitiesmmodities Group ROA % vs Capital Markets 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 (Sep. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Bright Smart Securitiesmmodities Group (HKSE:01428) has a ROA % of 7.32% as of Sep. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Bright Smart Securitiesmmodities Group and its competitors. This is 31% above median its historical median of 5.60. Over the past decade, Bright Smart Securitiesmmodities Group's ROA % has ranged from 2.76 to 8.36. According to the industry distribution chart, Bright Smart Securitiesmmodities Group ranks #158 out of 818 companies in the Capital Markets industry, placing it in the top 19.3%.
Is Bright Smart Securitiesmmodities Group's ROA % too high?
Bright Smart Securitiesmmodities Group's current ROA % of 7.32% is 31% above median its 10-year median of 5.60. Over the past 10 years, this metric has ranged from a low of 2.76 to a high of 8.36. The Capital Markets industry median ROA % is 1.51. Bright Smart Securitiesmmodities Group's value of 7.32% is 386.4% above this industry median. Based on the distribution chart, Bright Smart Securitiesmmodities Group ranks #158 out of 818 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Bright Smart Securitiesmmodities Group has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bright Smart Securitiesmmodities Group's ROA % compare to MS and GS?
According to the Capital Markets industry distribution chart, Bright Smart Securitiesmmodities Group ranks #158 out of 818 companies for ROA %. This places Bright Smart Securitiesmmodities Group in the top 19% of its industry — outperforming the majority of peers. The industry median ROA % is 1.51. Bright Smart Securitiesmmodities Group's value of 7.32% is 386.4% above this benchmark. Historically, Bright Smart Securitiesmmodities Group's own ROA % has ranged from 2.76 to 8.36 over the past decade. While the company's 10-year median is 5.60 vs. the industry median of 1.51, Bright Smart Securitiesmmodities Group 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 Capital Markets company?
The median ROA % among Capital Markets companies is 1.51, based on 818 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. Bright Smart Securitiesmmodities Group's current ROA % of 7.32% is 386.4% 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 Bright Smart Securitiesmmodities Group and its competitors. For the Capital Markets industry, the median ROA % is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bright Smart Securitiesmmodities Group's current ROA % is 7.32%, which is 31% above median its own 10-year median of 5.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bright Smart Securitiesmmodities Group stock overvalued right now?
Based on GuruFocus' analysis, Bright Smart Securitiesmmodities Group (HKSE:01428) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$2.28, compared to a current price of HK$7.05 — trading 209.2% above its estimated fair value. The current ROA % is 7.32%, which is 31% above median its 10-year median of 5.60 and 386.4% above the Capital Markets industry median of 1.51. Bright Smart Securitiesmmodities Group's overall GF Score™ is 51/100 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 Bright Smart Securitiesmmodities Group (HKSE:01428), the current ROA % is 7.32% as of Sep. 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 Bright Smart Securitiesmmodities Group (HKSE:01428) Overvalued in 2026?
Based on GuruFocus' analysis, Bright Smart Securitiesmmodities Group stock appears to be overvalued.
The current stock price of HK$7.05 is trading 209.2% above its estimated GF Value™ of HK$2.28.
GuruFocus considers Bright Smart Securitiesmmodities Group to be Significantly Overvalued.
Key valuation signals for HKSE:01428:
ROA %: 7.32% (31% above median its 10-year median of 5.60)
GF Value™: HK$2.28 vs. price of HK$7.05 (209.2% above fair value)
Industry Position: 386.4% above the Capital Markets median (#158 of 818)
No single metric tells the full story. See the HKSE:01428 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bright Smart Securitiesmmodities Group Business Description
Bright Smart Securities & Commodities Group Ltd is a company that provides financial services, including securities broking, margin financing, commodities & futures broking, bullion trading and leveraged foreign exchange trading. The company operates via three segments. The Securities broking segment offers broking services in securities traded in Hong Kong and select overseas markets and provides margin financing services to its broking customers. The Commodities and futures broking segment offers broking services in commodities and futures contracts traded in Hong Kong and overseas markets. The Bullion trading segment provides trading services in bullion contracts traded overseas. The company generates majority of its revenue from the Securities broking segment.
51GF Score
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