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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. FSM Holdings's annualizedNet Income for the quarter that ended in Jun. 2025 was HK$-48.63 Mil.
FSM Holdings's average Total Assets over the quarter that ended in Jun. 2025 was HK$296.90 Mil. Therefore, FSM Holdings's annualized ROA % for the quarter that ended in Jun. 2025 was -16.38%.
The historical rank and industry rank for FSM Holdings's ROA % or its related term are showing as below:
HKSE:01721'
s ROA % Range Over the Past 10 Years
Min: -13.8 Med: 2.02 Max: 25
Current: -13.8
During the past 10 years, FSM Holdings's highest ROA % was 25.00%. The lowest was -13.80%. And the median was 2.02%.
HKSE:01721's ROA % is not ranked
in the Industrial Products industry.
Industry Median: 3.23
vs HKSE:01721: -13.80
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 (Jun. 2025) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
FSM Holdings ROA % Related Terms
FSM Holdings ROA % Historical Data
* Premium members only.
The historical data trend for FSM Holdings's ROA % can be seen below:
* 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 Metal Fabrication subindustry, FSM 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.
FSM Holdings ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, FSM Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where FSM 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 (Jun. 2025) net income data.
ROA % is displayed in the 30-year financial page.
FSM Holdings (HKSE:01721) has a ROA % of -16.38% as of Jun. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on FSM Holdings and its competitors.
Is FSM Holdings' ROA % too high?
FSM Holdings' current ROA % is -16.38%. Overall, FSM Holdings has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does FSM Holdings' ROA % compare to ATI and CRS?
FSM Holdings' ROA % of -16.38% can be compared against companies in the Industrial Products industry. The industry median ROA % is 3.23. 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 Industrial Products company?
The median ROA % among Industrial Products companies is 3.23, based on 3,081 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 FSM Holdings and its competitors. For the Industrial Products industry, the median ROA % is 3.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FSM Holdings's current ROA % is -16.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FSM Holdings stock overvalued right now?
FSM Holdings (HKSE:01721) has a current ROA % of -16.38%. The stock's GF Value™ is HK$0.37, compared to a current price of HK$0.14 — trading 62.2% below its estimated fair value. The current ROA % is -16.38%. FSM Holdings' overall GF Score™ is 44/100 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 FSM Holdings (HKSE:01721), the current ROA % is -16.38% as of Jun. 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 FSM Holdings (HKSE:01721) Overvalued in 2026?
Based on GuruFocus' analysis, FSM Holdings stock appears to be undervalued.
The current stock price of HK$0.14 is trading 62.2% below its estimated GF Value™ of HK$0.37.
Key valuation signals for HKSE:01721:
ROA %: -16.38%
GF Value™: HK$0.37 vs. price of HK$0.14 (62.2% below fair value)
No single metric tells the full story. See the HKSE:01721 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FSM Holdings Ltd is an investment holding company engaged in manufacturing sheet metal fabrication with a focus on precision engineering, precision machining service and provision of posttreatment processes; and online business in developing, distributing and operating online mobile games. The group has two business segments, namely the manufacturing business and the online business. Under the manufacturing business segment, it engages in sheet metal fabrication with a focus on precision engineering and precision machining services with production facilities based in Singapore and Malaysia. The group has established a dedicated development team in the online business segment, concentrating on crafting mobile games for all audience.
44GF Score
Get the complete analysis for HKSE:01721
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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