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HPC HoldingsHKSE:01742 -1.90%51 ROA % is 7.03% as of Apr. 2026, which is 18% above its 10-year median of 5.95. GuruFocus rates HKSE:01742 with a GF Score™ of 51/100 and a GF Value™ of HK$0.13 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,780 Construction companies, HPC Holdings ranks better than 69.78% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. HPC Holdings's annualizedNet Income for the quarter that ended in Apr. 2026 was HK$121 Mil.
HPC Holdings's average Total Assets over the quarter that ended in Apr. 2026 was HK$1,719 Mil. Therefore, HPC Holdings's annualized ROA % for the quarter that ended in Apr. 2026 was 7.03%.
The historical rank and industry rank for HPC Holdings's ROA % or its related term are showing as below:
HKSE:01742'
s ROA % Range Over the Past 10 Years
Min: -5.11 Med: 5.95 Max: 22.14
Current: 5.57
During the past 11 years, HPC Holdings's highest ROA % was 22.14%. The lowest was -5.11%. And the median was 5.95%.
HKSE:01742's ROA % is ranked better than 69.78% of 1780
companies
in the Construction industry
Industry Median: 2.87
vs HKSE:01742: 5.57
HPC Holdings (HKSE:01742) 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 (Apr. 2026) net income data. The Revenue data used here is two times the semi-annual (Apr. 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.
HPC Holdings ROA % Related Terms
HPC Holdings ROA % Historical Data
* Premium members only.
The historical data trend for HPC 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 Engineering & Construction subindustry, HPC 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.
HPC Holdings ROA % vs Construction Industry
For the Construction industry and Industrials sector, HPC Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where HPC 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 (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
HPC Holdings (HKSE:01742) has a ROA % of 7.03% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on HPC Holdings and its competitors. This is 18% above median its historical median of 5.95. According to the industry distribution chart, HPC Holdings ranks #538 out of 1780 companies in the Construction industry, placing it in the top 30.2%.
Is HPC Holdings' ROA % too high?
HPC Holdings' current ROA % of 7.03% is 18% above median its 10-year median of 5.95. The Construction industry median ROA % is 2.87. HPC Holdings' value of 7.03% is 144.9% above this industry median. Based on the distribution chart, HPC Holdings ranks #538 out of 1780 companies in the Construction industry, which is above the industry midpoint. Overall, HPC Holdings has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HPC Holdings' ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, HPC Holdings ranks #538 out of 1780 companies for ROA %. This puts HPC Holdings in the upper half of its industry. The industry median ROA % is 2.87. HPC Holdings' value of 7.03% is 144.9% above this benchmark. While the company's 10-year median is 5.95 vs. the industry median of 2.87, HPC Holdings 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 Construction company?
The median ROA % among Construction companies is 2.87, based on 1,780 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. HPC Holdings's current ROA % of 7.03% is 144.9% 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 HPC Holdings and its competitors. For the Construction industry, the median ROA % is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HPC Holdings's current ROA % is 7.03%, which is 18% above median its own 10-year median of 5.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HPC Holdings stock overvalued right now?
Based on GuruFocus' analysis, HPC Holdings (HKSE:01742) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.13, compared to a current price of HK$0.16 — trading 19.2% above its estimated fair value. The current ROA % is 7.03%, which is 18% above median its 10-year median of 5.95 and 144.9% above the Construction industry median of 2.87. HPC Holdings' overall GF Score™ is 51/100 with 1 warning sign 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 HPC Holdings (HKSE:01742), the current ROA % is 7.03% as of Apr. 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 HPC Holdings (HKSE:01742) Overvalued in 2026?
Based on GuruFocus' analysis, HPC Holdings stock appears to be overvalued.
The current stock price of HK$0.16 is trading 19.2% above its estimated GF Value™ of HK$0.13.
GuruFocus considers HPC Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:01742:
ROA %: 7.03% (18% above median its 10-year median of 5.95)
GF Value™: HK$0.13 vs. price of HK$0.16 (19.2% above fair value)
Industry Position: 144.9% above the Construction median (#538 of 1780)
No single metric tells the full story. See the HKSE:01742 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HPC Holdings Ltd is a Singapore-based investment holding company. The Company operates through two segments: General building construction and Civil engineering. The General building construction segment relates to the design and building projects of warehouses and other industrial or commercial buildings. The Civil engineering segment relates to the construction of public infrastructures, such as train stations, tunnels, railways and expressways. Its contractor works are related to designing and building projects for commercial and industrial buildings, such as logistics and warehouse facilities, offices, workshops and carparks and nursing homes. The company derives maximum revenue from General building construction segment.
51GF Score
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