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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Watts International Maritime Co's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$38 Mil.
Watts International Maritime Co's average Total Assets over the quarter that ended in Dec. 2025 was HK$3,761 Mil. Therefore, Watts International Maritime Co's annualized ROA % for the quarter that ended in Dec. 2025 was 1.02%.
Watts International Maritime Co (HKSE:02258) 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.
Watts International Maritime Co ROA % Related Terms
Watts International Maritime Co 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.
Watts International Maritime Co ROA % Competitor Comparison
For the Infrastructure Operations subindustry, Watts International Maritime Co'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.
Watts International Maritime Co ROA % vs Construction Industry
For the Construction industry and Industrials sector, Watts International Maritime Co's ROA % distribution charts can be found below:
* The bar in red indicates where Watts International Maritime Co'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.
Watts International Maritime Co (HKSE:02258) has a ROA % of 1.02% 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 Watts International Maritime Co and its competitors. This is 28% below median its historical median of 1.41. According to the industry distribution chart, Watts International Maritime Co ranks #1161 out of 1788 companies in the Construction industry, placing it in the top 64.9%.
Is Watts International Maritime Co's ROA % too high?
Watts International Maritime Co's current ROA % of 1.02% is 28% below median its 10-year median of 1.41. The Construction industry median ROA % is 2.88. Watts International Maritime Co's value of 1.02% is 64.5% below this industry median. Based on the distribution chart, Watts International Maritime Co ranks #1161 out of 1788 companies in the Construction industry, which is below the industry midpoint. Overall, Watts International Maritime Co has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watts International Maritime Co's ROA % compare to competitors?
According to the Construction industry distribution chart, Watts International Maritime Co ranks #1161 out of 1788 companies for ROA %. This places Watts International Maritime Co in the lower half of its industry. The industry median ROA % is 2.88. Watts International Maritime Co's value of 1.02% is 64.5% below this benchmark. While the company's 10-year median is 1.41 vs. the industry median of 2.88, Watts International Maritime Co 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 a Construction company?
The median ROA % among Construction companies is 2.88, based on 1,788 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. Watts International Maritime Co's current ROA % of 1.02% is 64.5% 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 Watts International Maritime Co and its competitors. For the Construction industry, the median ROA % is 2.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts International Maritime Co's current ROA % is 1.02%, which is 28% below median its own 10-year median of 1.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watts International Maritime Co stock overvalued right now?
Based on GuruFocus' analysis, Watts International Maritime Co (HKSE:02258) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.21, compared to a current price of HK$0.33 — trading 57.1% above its estimated fair value. The current ROA % is 1.02%, which is 28% below median its 10-year median of 1.41 and 64.5% below the Construction industry median of 2.88. Watts International Maritime Co's overall GF Score™ is 46/100 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 Watts International Maritime Co (HKSE:02258), the current ROA % is 1.02% 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 Watts International Maritime Co (HKSE:02258) Overvalued in 2026?
Based on GuruFocus' analysis, Watts International Maritime Co stock appears to be overvalued.
The current stock price of HK$0.33 is trading 57.1% above its estimated GF Value™ of HK$0.21.
GuruFocus considers Watts International Maritime Co to be Significantly Overvalued.
Key valuation signals for HKSE:02258:
ROA %: 1.02% (28% below median its 10-year median of 1.41)
GF Value™: HK$0.21 vs. price of HK$0.33 (57.1% above fair value)
Industry Position: 64.5% below the Construction median (#1161 of 1788)
No single metric tells the full story. See the HKSE:02258 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watts International Maritime Co Ltd is a port, waterway, maritime engineering and municipal public engineering services provider in the PRC and provides services of port infrastructure, waterway engineering, construction of public infrastructure within cities, urban greening and construction of buildings. Its segments include Marine construction, including infrastructure construction of ports, waterway engineering and other services; and Municipal public construction, including construction of public infrastructure within cities, urban greening and construction of buildings.
46GF Score
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