Luxshare Precision Industry Co (HKSE:02475) ROA %: 4.69% (As of Mar. 2026) — 34% Below Median

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HKSE:02475 Luxshare Precision Industry Co Ltd HKSE:02475
69 GF Score
Price HK$63.20
GF Value HK$55.38
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Luxshare Precision Industry Co ROA %?

Luxshare Precision Industry Co HKSE:02475 +2.93% 69 ROA % is 4.69% as of Mar. 2026, which is 34% below its 10-year median of 7.09. GuruFocus rates HKSE:02475 with a GF Score™ of 69/100 and a GF Value™ of HK$55.38 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,505 Hardware companies, Luxshare Precision Industry Co ranks better than 74.37% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Luxshare Precision Industry Co's annualized Net Income for the quarter that ended in Mar. 2026 was HK$16,624 Mil. Luxshare Precision Industry Co's average Total Assets over the quarter that ended in Mar. 2026 was HK$354,208 Mil. Therefore, Luxshare Precision Industry Co's annualized ROA % for the quarter that ended in Mar. 2026 was 4.69%.

The historical rank and industry rank for Luxshare Precision Industry Co's ROA % or its related term are showing as below:

HKSE:02475' s ROA % Range Over the Past 10 Years
Min: 6.08   Med: 7.09   Max: 12.09
Current: 6.08

During the past 13 years, Luxshare Precision Industry Co's highest ROA % was 12.09%. The lowest was 6.08%. And the median was 7.09%.

HKSE:02475's ROA % is ranked better than
74.37% of 2505 companies
in the Hardware industry
Industry Median: 2.28 vs HKSE:02475: 6.08

Luxshare Precision Industry Co  (HKSE:02475) 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 bank’s 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:

ROA %(Q: Mar. 2026 )
=Net Income/Total Assets
=16623.84/354208.135
=(Net Income / Revenue)*(Revenue / Total Assets)
=(16623.84 / 381061.476)*(381061.476 / 354208.135)
=Net Margin %*Asset Turnover
=4.36 %*1.0758
=4.69 %

Note: The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


Luxshare Precision Industry Co ROA % Related Terms


Luxshare Precision Industry Co ROA % Historical Data

* Premium members only.

The historical data trend for Luxshare Precision Industry Co'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.

Luxshare Precision Industry Co ROA % Chart

Luxshare Precision Industry Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.50 6.53 6.99 6.86 6.35

Luxshare Precision Industry Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.28 6.03 7.16 6.74 4.69

HKSE:02475 vs : ROA % Comparison

For the Electronic Components subindustry, Luxshare Precision Industry 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.


Luxshare Precision Industry Co ROA % vs Hardware Industry

For the Hardware industry and Technology sector, Luxshare Precision Industry Co's ROA % distribution charts can be found below:

* The bar in red indicates where Luxshare Precision Industry Co's ROA % falls into.


HKSE:02475
69GF Score
Luxshare Precision Industry Co Ltd HKSE:02475
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Luxshare Precision Industry Co ROA % Calculation

Luxshare Precision Industry Co's annualized ROA % for the fiscal year that ended in Dec. 2025 is calculated as:

ROA %=Net Income (A: Dec. 2025 )/( (Total Assets (A: Dec. 2024 )+Total Assets (A: Dec. 2025 ))/ count )
=18338.183/( (238974.459+338639.872)/ 2 )
=18338.183/288807.1655
=6.35 %

Luxshare Precision Industry Co's annualized ROA % for the quarter that ended in Mar. 2026 is calculated as:

ROA %=Net Income (Q: Mar. 2026 )/( (Total Assets (Q: Dec. 2025 )+Total Assets (Q: Mar. 2026 ))/ count )
=16623.84/( (338639.872+369776.398)/ 2 )
=16623.84/354208.135
=4.69 %

* 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 four times the quarterly (Mar. 2026) net income data. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 4.69% mean?
Luxshare Precision Industry Co (HKSE:02475) has a ROA % of 4.69% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Luxshare Precision Industry Co and its competitors. This is 34% below median its historical median of 7.09. Over the past decade, Luxshare Precision Industry Co's ROA % has ranged from 6.08 to 12.09. According to the industry distribution chart, Luxshare Precision Industry Co ranks #642 out of 2505 companies in the Hardware industry, placing it in the top 25.6%.
Is Luxshare Precision Industry Co's ROA % too high?
Luxshare Precision Industry Co's current ROA % of 4.69% is 34% below median its 10-year median of 7.09. Over the past 10 years, this metric has ranged from a low of 6.08 to a high of 12.09. The Hardware industry median ROA % is 2.28. Luxshare Precision Industry Co's value of 4.69% is 105.7% above this industry median. Based on the distribution chart, Luxshare Precision Industry Co ranks #642 out of 2505 companies in the Hardware industry, which is above the industry midpoint. Overall, Luxshare Precision Industry Co has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Luxshare Precision Industry Co's ROA % compare to ?
According to the Hardware industry distribution chart, Luxshare Precision Industry Co ranks #642 out of 2505 companies for ROA %. This puts Luxshare Precision Industry Co in the upper half of its industry. The industry median ROA % is 2.28. Luxshare Precision Industry Co's value of 4.69% is 105.7% above this benchmark. Historically, Luxshare Precision Industry Co's own ROA % has ranged from 6.08 to 12.09 over the past decade. While the company's 10-year median is 7.09 vs. the industry median of 2.28, Luxshare Precision Industry 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 Hardware company?
The median ROA % among Hardware companies is 2.28, based on 2,505 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. Luxshare Precision Industry Co's current ROA % of 4.69% is 105.7% 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 Luxshare Precision Industry Co and its competitors. For the Hardware industry, the median ROA % is 2.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luxshare Precision Industry Co's current ROA % is 4.69%, which is 34% below median its own 10-year median of 7.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luxshare Precision Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Luxshare Precision Industry Co (HKSE:02475) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$55.38, compared to a current price of HK$63.20 — trading 14.1% above its estimated fair value. The current ROA % is 4.69%, which is 34% below median its 10-year median of 7.09 and 105.7% above the Hardware industry median of 2.28. Luxshare Precision Industry Co's overall GF Score™ is 69/100 with 5 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 Luxshare Precision Industry Co (HKSE:02475), the current ROA % is 4.69% as of Mar. 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 Luxshare Precision Industry Co (HKSE:02475) Overvalued in 2026?

Based on GuruFocus' analysis, Luxshare Precision Industry Co stock appears to be overvalued. The current stock price of HK$63.20 is trading 14.1% above its estimated GF Value™ of HK$55.38. GuruFocus considers Luxshare Precision Industry Co to be Modestly Overvalued.

Key valuation signals for HKSE:02475:

  • ROA %: 4.69% (34% below median its 10-year median of 7.09)
  • GF Value™: HK$55.38 vs. price of HK$63.20 (14.1% above fair value)
  • GF Score™: 69/100 with 5 warning signs
  • Industry Position: 105.7% above the Hardware median (#642 of 2505)

No single metric tells the full story. See the HKSE:02475 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Luxshare Precision Industry Co Business Description

Comparable Companies
Other Exchanges 002475:China
Address No. 313 North Ring Road, Qingxi Town, Guangdong, Dongguan, CHN, 523642
Founded in 2004, Luxshare Precision is one of the world's largest manufacturers of cables and connectors and is a major supplier to Apple, which accounts for over 70% of revenue. Of Luxshare's 2025 sales, 80% is derived from the consumer electronics end market, while the remaining 20% is spread across the computer, communication, and automobile verticals. In nonconsumer businesses, Luxshare supplies cooling systems, optical interconnects, cables, power supplies, and other electric hardware. Luxshare employs almost 420,000 people and has manufacturing bases in China, India, and Vietnam. Through acquiring German automotive cabling firm Leoni, it has added 26 more production sites, mainly in Europe and Africa.
69GF Score

Get the complete analysis for HKSE:02475

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$63.20
Price
HK$55.38
GF Value