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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shanghai Gench Education Group's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$178 Mil.
Shanghai Gench Education Group's average Total Assets over the quarter that ended in Dec. 2025 was HK$4,006 Mil. Therefore, Shanghai Gench Education Group's annualized ROA % for the quarter that ended in Dec. 2025 was 4.44%.
The historical rank and industry rank for Shanghai Gench Education Group's ROA % or its related term are showing as below:
HKSE:01525'
s ROA % Range Over the Past 10 Years
Min: 0.41 Med: 5.59 Max: 7.71
Current: 6.51
During the past 10 years, Shanghai Gench Education Group's highest ROA % was 7.71%. The lowest was 0.41%. And the median was 5.59%.
HKSE:01525's ROA % is ranked better than 66.54% of 263
companies
in the Education industry
Industry Median: 3.9
vs HKSE:01525: 6.51
Shanghai Gench Education Group (HKSE:01525) 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.
Shanghai Gench Education Group ROA % Related Terms
Shanghai Gench Education 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.
For the Education & Training Services subindustry, Shanghai Gench Education 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.
Shanghai Gench Education Group ROA % vs Education Industry
For the Education industry and Consumer Defensive sector, Shanghai Gench Education Group's ROA % distribution charts can be found below:
* The bar in red indicates where Shanghai Gench Education Group'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.
Shanghai Gench Education Group (HKSE:01525) has a ROA % of 4.44% 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 Shanghai Gench Education Group and its competitors. This is 21% below median its historical median of 5.59. Over the past decade, Shanghai Gench Education Group's ROA % has ranged from 0.41 to 7.71. According to the industry distribution chart, Shanghai Gench Education Group ranks #88 out of 263 companies in the Education industry, placing it in the top 33.5%.
Is Shanghai Gench Education Group's ROA % too high?
Shanghai Gench Education Group's current ROA % of 4.44% is 21% below median its 10-year median of 5.59. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 7.71. The Education industry median ROA % is 3.90. Shanghai Gench Education Group's value of 4.44% is 13.8% above this industry median. Based on the distribution chart, Shanghai Gench Education Group ranks #88 out of 263 companies in the Education industry, which is above the industry midpoint. Overall, Shanghai Gench Education Group has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Gench Education Group's ROA % compare to EDU and TAL?
According to the Education industry distribution chart, Shanghai Gench Education Group ranks #88 out of 263 companies for ROA %. This puts Shanghai Gench Education Group in the upper half of its industry. The industry median ROA % is 3.90. Shanghai Gench Education Group's value of 4.44% is 13.8% above this benchmark. Historically, Shanghai Gench Education Group's own ROA % has ranged from 0.41 to 7.71 over the past decade. While the company's 10-year median is 5.59 vs. the industry median of 3.90, Shanghai Gench Education 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 an Education company?
The median ROA % among Education companies is 3.90, based on 263 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. Shanghai Gench Education Group's current ROA % of 4.44% is 13.8% 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 Shanghai Gench Education Group and its competitors. For the Education industry, the median ROA % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Gench Education Group's current ROA % is 4.44%, which is 21% below median its own 10-year median of 5.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Gench Education Group stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Gench Education Group (HKSE:01525) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$3.48, compared to a current price of HK$2.48 — trading 28.7% below its estimated fair value. The current ROA % is 4.44%, which is 21% below median its 10-year median of 5.59 and 13.8% above the Education industry median of 3.90. Shanghai Gench Education Group's overall GF Score™ is 80/100 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 Shanghai Gench Education Group (HKSE:01525), the current ROA % is 4.44% 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 Shanghai Gench Education Group (HKSE:01525) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Gench Education Group stock appears to be undervalued.
The current stock price of HK$2.48 is trading 28.7% below its estimated GF Value™ of HK$3.48.
GuruFocus considers Shanghai Gench Education Group to be Modestly Undervalued.
Key valuation signals for HKSE:01525:
ROA %: 4.44% (21% below median its 10-year median of 5.59)
GF Value™: HK$3.48 vs. price of HK$2.48 (28.7% below fair value)
Industry Position: 13.8% above the Education median (#88 of 263)
No single metric tells the full story. See the HKSE:01525 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Gench Education Group Business Description
Shanghai Gench Education Group Ltd and its subsidiaries are engaged in providing undergraduate education and junior college educations. The group generates its revenue from tuition fees, boarding fees, and other education-related services. Geographically, the company generates all of its revenue from the People's Republic of China.
80GF Score
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