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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Virscend Education Co's annualizedNet Income for the quarter that ended in Feb. 2026 was HK$60 Mil.
Virscend Education Co's average Total Assets over the quarter that ended in Feb. 2026 was HK$4,787 Mil. Therefore, Virscend Education Co's annualized ROA % for the quarter that ended in Feb. 2026 was 1.24%.
The historical rank and industry rank for Virscend Education Co's ROA % or its related term are showing as below:
HKSE:01565'
s ROA % Range Over the Past 10 Years
Min: 0.19 Med: 3.73 Max: 8.63
Current: 0.84
During the past 11 years, Virscend Education Co's highest ROA % was 8.63%. The lowest was 0.19%. And the median was 3.73%.
HKSE:01565's ROA % is ranked worse than 65.28% of 265
companies
in the Education industry
Industry Median: 4.04
vs HKSE:01565: 0.84
Virscend Education Co (HKSE:01565) 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 (Feb. 2026) net income data. The Revenue data used here is two times the semi-annual (Feb. 2026) 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 Education & Training Services subindustry, Virscend Education Co'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.
Virscend Education Co ROA % vs Education Industry
For the Education industry and Consumer Defensive sector, Virscend Education Co's ROA % distribution charts can be found below:
* The bar in red indicates where Virscend Education Co'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 (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Virscend Education Co (HKSE:01565) has a ROA % of 1.24% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Virscend Education Co and its competitors. This is 67% below median its historical median of 3.73. Over the past decade, Virscend Education Co's ROA % has ranged from 0.19 to 8.63. According to the industry distribution chart, Virscend Education Co ranks #173 out of 265 companies in the Education industry, placing it in the top 65.3%.
Is Virscend Education Co's ROA % too high?
Virscend Education Co's current ROA % of 1.24% is 67% below median its 10-year median of 3.73. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 8.63. The Education industry median ROA % is 4.04. Virscend Education Co's value of 1.24% is 69.3% below this industry median. Based on the distribution chart, Virscend Education Co ranks #173 out of 265 companies in the Education industry, which is below the industry midpoint. Overall, Virscend Education Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Virscend Education Co's ROA % compare to EDU and TAL?
According to the Education industry distribution chart, Virscend Education Co ranks #173 out of 265 companies for ROA %. This places Virscend Education Co in the lower half of its industry. The industry median ROA % is 4.04. Virscend Education Co's value of 1.24% is 69.3% below this benchmark. Historically, Virscend Education Co's own ROA % has ranged from 0.19 to 8.63 over the past decade. While the company's 10-year median is 3.73 vs. the industry median of 4.04, Virscend Education Co has consistently been below 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 4.04, based on 265 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. Virscend Education Co's current ROA % of 1.24% is 69.3% below 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 Virscend Education Co and its competitors. For the Education industry, the median ROA % is 4.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virscend Education Co's current ROA % is 1.24%, which is 67% below median its own 10-year median of 3.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virscend Education Co stock overvalued right now?
Based on GuruFocus' analysis, Virscend Education Co (HKSE:01565) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.19 — trading 20% below its estimated fair value. The current ROA % is 1.24%, which is 67% below median its 10-year median of 3.73 and 69.3% below the Education industry median of 4.04. Virscend Education Co's overall GF Score™ is 55/100 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 Virscend Education Co (HKSE:01565), the current ROA % is 1.24% as of Feb. 2026. 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 Virscend Education Co (HKSE:01565) Overvalued in 2026?
Based on GuruFocus' analysis, Virscend Education Co stock appears to be undervalued.
The current stock price of HK$0.19 is trading 20% below its estimated GF Value™ of HK$0.24.
GuruFocus considers Virscend Education Co to be Modestly Undervalued.
Key valuation signals for HKSE:01565:
ROA %: 1.24% (67% below median its 10-year median of 3.73)
GF Value™: HK$0.24 vs. price of HK$0.19 (20% below fair value)
Industry Position: 69.3% below the Education median (#173 of 265)
No single metric tells the full story. See the HKSE:01565 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Virscend Education Co Ltd is a provider of K-12 private education services. The company is a provider of high school and university private education services in Southwest China. The firm's formal education industry consists of education for pre-school, primary, middle, and high school students with a total of over 16-second foreign language-based classes to its students, which include German, French, and Japanese, among other languages. The majority of the company's revenues are generated through tuition fees.
55GF Score
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