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Desun Real Estate Investment Services Group Co (HKSE:02270) 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.
Desun Real Estate Investment Services Group Co ROA % Related Terms
Desun Real Estate Investment Services Group 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.
Desun Real Estate Investment Services Group Co ROA % Chart
Desun Real Estate Investment Services Group Co Annual Data
* 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.
Desun Real Estate Investment Services Group Co ROA % vs Real Estate 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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Desun Real Estate Investment Services Group Co (HKSE:02270) has a ROA % of 3.64% 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 Desun Real Estate Investment Services Group Co and its competitors. This is 64% below median its historical median of 10.10. Over the past decade, Desun Real Estate Investment Services Group Co's ROA % has ranged from 3.78 to 44.04. According to the industry distribution chart, Desun Real Estate Investment Services Group Co ranks #542 out of 1800 companies in the Real Estate industry, placing it in the top 30.1%.
Is Desun Real Estate Investment Services Group Co's ROA % too high?
Desun Real Estate Investment Services Group Co's current ROA % of 3.64% is 64% below median its 10-year median of 10.10. Over the past 10 years, this metric has ranged from a low of 3.78 to a high of 44.04. The Real Estate industry median ROA % is 1.73. Desun Real Estate Investment Services Group Co's value of 3.64% is 110.4% above this industry median. Based on the distribution chart, Desun Real Estate Investment Services Group Co ranks #542 out of 1800 companies in the Real Estate industry, which is above the industry midpoint. Overall, Desun Real Estate Investment Services Group Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Desun Real Estate Investment Services Group Co's ROA % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Desun Real Estate Investment Services Group Co ranks #542 out of 1800 companies for ROA %. This puts Desun Real Estate Investment Services Group Co in the upper half of its industry. The industry median ROA % is 1.73. Desun Real Estate Investment Services Group Co's value of 3.64% is 110.4% above this benchmark. Historically, Desun Real Estate Investment Services Group Co's own ROA % has ranged from 3.78 to 44.04 over the past decade. While the company's 10-year median is 10.10 vs. the industry median of 1.73, Desun Real Estate Investment Services Group Co 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 Real Estate company?
The median ROA % among Real Estate companies is 1.73, based on 1,800 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. Desun Real Estate Investment Services Group Co's current ROA % of 3.64% is 110.4% 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 Desun Real Estate Investment Services Group Co and its competitors. For the Real Estate industry, the median ROA % is 1.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Desun Real Estate Investment Services Group Co's current ROA % is 3.64%, which is 64% below median its own 10-year median of 10.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Desun Real Estate Investment Services Group Co stock overvalued right now?
Based on GuruFocus' analysis, Desun Real Estate Investment Services Group Co (HKSE:02270) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$2.23, compared to a current price of HK$7.10 — trading 218.4% above its estimated fair value. The current ROA % is 3.64%, which is 64% below median its 10-year median of 10.10 and 110.4% above the Real Estate industry median of 1.73. Desun Real Estate Investment Services Group Co's overall GF Score™ is 78/100 with 10 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 Desun Real Estate Investment Services Group Co (HKSE:02270), the current ROA % is 3.64% 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 Desun Real Estate Investment Services Group Co (HKSE:02270) Overvalued in 2026?
Based on GuruFocus' analysis, Desun Real Estate Investment Services Group Co stock appears to be overvalued.
The current stock price of HK$7.10 is trading 218.4% above its estimated GF Value™ of HK$2.23.
GuruFocus considers Desun Real Estate Investment Services Group Co to be Significantly Overvalued.
Key valuation signals for HKSE:02270:
ROA %: 3.64% (64% below median its 10-year median of 10.10)
GF Value™: HK$2.23 vs. price of HK$7.10 (218.4% above fair value)
Industry Position: 110.4% above the Real Estate median (#542 of 1800)
No single metric tells the full story. See the HKSE:02270 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Desun Real Estate Investment Services Group Co Ltd is principally engaged in the provision of property management services and value-added services to property and non-property owners in China. The company's three business segments include property services, asset operation services, and investment and development. The Property Services has the majority of revenue. The majority of the company's revenue is generated in the PRC region.
78GF Score
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