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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Leon Inspection Holding's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$-4 Mil.
China Leon Inspection Holding's average Total Assets over the quarter that ended in Dec. 2025 was HK$994 Mil. Therefore, China Leon Inspection Holding's annualized ROA % for the quarter that ended in Dec. 2025 was -0.40%.
The historical rank and industry rank for China Leon Inspection Holding's ROA % or its related term are showing as below:
HKSE:01586'
s ROA % Range Over the Past 10 Years
Min: 3.92 Med: 9.31 Max: 15.79
Current: 3.95
During the past 13 years, China Leon Inspection Holding's highest ROA % was 15.79%. The lowest was 3.92%. And the median was 9.31%.
HKSE:01586's ROA % is ranked better than 52.29% of 1094
companies
in the Business Services industry
Industry Median: 3.53
vs HKSE:01586: 3.95
China Leon Inspection Holding (HKSE:01586) 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.
China Leon Inspection Holding ROA % Related Terms
China Leon Inspection Holding 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 Specialty Business Services subindustry, China Leon Inspection Holding'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.
China Leon Inspection Holding ROA % vs Business Services Industry
For the Business Services industry and Industrials sector, China Leon Inspection Holding's ROA % distribution charts can be found below:
* The bar in red indicates where China Leon Inspection Holding'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.
China Leon Inspection Holding (HKSE:01586) has a ROA % of -0.40% 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 China Leon Inspection Holding and its competitors. Over the past decade, China Leon Inspection Holding's ROA % has ranged from 3.92 to 15.79. According to the industry distribution chart, China Leon Inspection Holding ranks #522 out of 1094 companies in the Business Services industry, placing it in the top 47.7%.
Is China Leon Inspection Holding's ROA % too high?
China Leon Inspection Holding's current ROA % is -0.40%. Over the past 10 years, this metric has ranged from a low of 3.92 to a high of 15.79. Based on the distribution chart, China Leon Inspection Holding ranks #522 out of 1094 companies in the Business Services industry, which is above the industry midpoint. Overall, China Leon Inspection Holding has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Leon Inspection Holding's ROA % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, China Leon Inspection Holding ranks #522 out of 1094 companies for ROA %. This puts China Leon Inspection Holding in the upper half of its industry. The industry median ROA % is 3.53. Historically, China Leon Inspection Holding's own ROA % has ranged from 3.92 to 15.79 over the past decade. 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 Business Services company?
The median ROA % among Business Services companies is 3.53, based on 1,094 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 China Leon Inspection Holding and its competitors. For the Business Services industry, the median ROA % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Leon Inspection Holding's current ROA % is -0.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Leon Inspection Holding stock overvalued right now?
Based on GuruFocus' analysis, China Leon Inspection Holding (HKSE:01586) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$2.22, compared to a current price of HK$1.72 — trading 22.5% below its estimated fair value. The current ROA % is -0.40%. China Leon Inspection Holding's overall GF Score™ is 88/100 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 China Leon Inspection Holding (HKSE:01586), the current ROA % is -0.40% 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 China Leon Inspection Holding (HKSE:01586) Overvalued in 2026?
Based on GuruFocus' analysis, China Leon Inspection Holding stock appears to be undervalued.
The current stock price of HK$1.72 is trading 22.5% below its estimated GF Value™ of HK$2.22.
GuruFocus considers China Leon Inspection Holding to be Modestly Undervalued.
Key valuation signals for HKSE:01586:
ROA %: -0.40%
GF Value™: HK$2.22 vs. price of HK$1.72 (22.5% below fair value)
No single metric tells the full story. See the HKSE:01586 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Leon Inspection Holding Ltd is a coal testing inspection services provider. The business scope of the company includes Testing services, Surveying services, and witnessing and Ancillary services. Testing services focus on the quality assurance of coal; Surveying services include a draft survey to determine or verify the coal quantity, and it also provide witnessing services by observing testing and inspection activities conducted by the counterparties of its customers to detect dishonesty or abnormality. Geographically, it generates the majority of its revenue from Greater China.
88GF Score
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