ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Everest Medicines's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$-106 Mil.
Everest Medicines's average Total Assets over the quarter that ended in Dec. 2025 was HK$6,471 Mil. Therefore, Everest Medicines's annualized ROA % for the quarter that ended in Dec. 2025 was -1.64%.
The historical rank and industry rank for Everest Medicines's ROA % or its related term are showing as below:
HKSE:01952'
s ROA % Range Over the Past 10 Years
Min: -137.13 Med: -14.73 Max: -3.56
Current: -5.36
During the past 8 years, Everest Medicines's highest ROA % was -3.56%. The lowest was -137.13%. And the median was -14.73%.
HKSE:01952's ROA % is ranked better than 74.72% of 1412
companies
in the Biotechnology industry
Industry Median: -32.57
vs HKSE:01952: -5.36
Everest Medicines (HKSE:01952) 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.
Everest Medicines ROA % Related Terms
Everest Medicines ROA % Historical Data
* Premium members only.
The historical data trend for Everest Medicines'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 Biotechnology subindustry, Everest Medicines'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.
Everest Medicines ROA % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Everest Medicines's ROA % distribution charts can be found below:
* The bar in red indicates where Everest Medicines'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.
Everest Medicines (HKSE:01952) has a ROA % of -1.64% 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 Everest Medicines and its competitors. According to the industry distribution chart, Everest Medicines ranks #357 out of 1412 companies in the Biotechnology industry, placing it in the top 25.3%.
Is Everest Medicines' ROA % too high?
Everest Medicines' current ROA % is -1.64%. Based on the distribution chart, Everest Medicines ranks #357 out of 1412 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Everest Medicines has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Everest Medicines' ROA % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Everest Medicines ranks #357 out of 1412 companies for ROA %. This puts Everest Medicines in the upper half of its industry. 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 Biotechnology company?
A good ROA % depends on the Biotechnology industry context. 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 Everest Medicines and its competitors. Everest Medicines's current ROA % is -1.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Everest Medicines stock overvalued right now?
Based on GuruFocus' analysis, Everest Medicines (HKSE:01952) is currently considered Possible Value Trap. The stock's GF Value™ is HK$292.53, compared to a current price of HK$26.88 — trading 90.8% below its estimated fair value. The current ROA % is -1.64%. Everest Medicines' overall GF Score™ is 42/100 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 Everest Medicines (HKSE:01952), the current ROA % is -1.64% 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 Everest Medicines (HKSE:01952) Overvalued in 2026?
Based on GuruFocus' analysis, Everest Medicines stock appears to be undervalued.
The current stock price of HK$26.88 is trading 90.8% below its estimated GF Value™ of HK$292.53.
GuruFocus considers Everest Medicines to be Possible Value Trap.
Key valuation signals for HKSE:01952:
ROA %: -1.64%
GF Value™: HK$292.53 vs. price of HK$26.88 (90.8% below fair value)
No single metric tells the full story. See the HKSE:01952 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Everest Medicines Ltd is a biopharmaceutical company that integrates discovery, licensing, clinical development, commercialization, and manufacturing of potentially novel or differentiated therapies and vaccines to address critical unmet medical needs initially in the Asia Pacific markets and eventually around the world. Its product pipeline includes: Nefecon (TarpeyoTM), EVER001, Eravacycline (Xerava), SPR206, and others. Geographically operates in Mainland China.
42GF Score
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