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China Science and Education Industry Group (HKSE:01756) 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.
China Science and Education Industry Group ROA % Related Terms
China Science and Education Industry 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.
China Science and Education Industry Group ROA % Chart
China Science and Education Industry Group Annual Data
For the Education & Training Services subindustry, China Science and Education Industry 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.
China Science and Education Industry Group ROA % vs Education Industry
* 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.
China Science and Education Industry Group (HKSE:01756) has a ROA % of 2.21% 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 China Science and Education Industry Group and its competitors. This is 60% below median its historical median of 5.53. Over the past decade, China Science and Education Industry Group's ROA % has ranged from 2.60 to 6.56. According to the industry distribution chart, China Science and Education Industry Group ranks #131 out of 265 companies in the Education industry, placing it in the top 49.4%.
Is China Science and Education Industry Group's ROA % too high?
China Science and Education Industry Group's current ROA % of 2.21% is 60% below median its 10-year median of 5.53. Over the past 10 years, this metric has ranged from a low of 2.60 to a high of 6.56. The Education industry median ROA % is 4.01. China Science and Education Industry Group's value of 2.21% is 44.9% below this industry median. Based on the distribution chart, China Science and Education Industry Group ranks #131 out of 265 companies in the Education industry, which is above the industry midpoint. Overall, China Science and Education Industry Group has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Science and Education Industry Group's ROA % compare to EDU and TAL?
According to the Education industry distribution chart, China Science and Education Industry Group ranks #131 out of 265 companies for ROA %. This puts China Science and Education Industry Group in the upper half of its industry. The industry median ROA % is 4.01. China Science and Education Industry Group's value of 2.21% is 44.9% below this benchmark. Historically, China Science and Education Industry Group's own ROA % has ranged from 2.60 to 6.56 over the past decade. While the company's 10-year median is 5.53 vs. the industry median of 4.01, China Science and Education Industry Group 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 4.01, 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. China Science and Education Industry Group's current ROA % of 2.21% is 44.9% 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 China Science and Education Industry Group and its competitors. For the Education industry, the median ROA % is 4.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Science and Education Industry Group's current ROA % is 2.21%, which is 60% below median its own 10-year median of 5.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Science and Education Industry Group stock overvalued right now?
Based on GuruFocus' analysis, China Science and Education Industry Group (HKSE:01756) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.84, compared to a current price of HK$0.40 — trading 52.4% below its estimated fair value. The current ROA % is 2.21%, which is 60% below median its 10-year median of 5.53 and 44.9% below the Education industry median of 4.01. China Science and Education Industry Group's overall GF Score™ is 57/100 with 3 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 Science and Education Industry Group (HKSE:01756), the current ROA % is 2.21% 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 China Science and Education Industry Group (HKSE:01756) Overvalued in 2026?
Based on GuruFocus' analysis, China Science and Education Industry Group stock appears to be undervalued.
The current stock price of HK$0.40 is trading 52.4% below its estimated GF Value™ of HK$0.84.
GuruFocus considers China Science and Education Industry Group to be Possible Value Trap.
Key valuation signals for HKSE:01756:
ROA %: 2.21% (60% below median its 10-year median of 5.53)
GF Value™: HK$0.84 vs. price of HK$0.40 (52.4% below fair value)
Industry Position: 44.9% below the Education median (#131 of 265)
No single metric tells the full story. See the HKSE:01756 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressNumber 11 Huali Road, The Administration Building of Guangzhou, Huali Science and Technology Town, Zengcheng District, Guangdong Province, Guangzhou, CHN
China Science and Education Industry Group Ltd is an investment holding company. The company and its subsidiaries are principally engaged in providing private tertiary education services, including tuition services and student accommodation services in the People's Republic of China. Its schools provide students with higher education and vocational revenue in various applied science fields. The company's revenue is mainly derived from tuition fees and boarding fees for the education services.
57GF Score
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