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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Xinhua Education Group's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$180.6 Mil.
China Xinhua Education Group's average Total Assets over the quarter that ended in Dec. 2025 was HK$5,413.7 Mil. Therefore, China Xinhua Education Group's annualized ROA % for the quarter that ended in Dec. 2025 was 3.34%.
The historical rank and industry rank for China Xinhua Education Group's ROA % or its related term are showing as below:
HKSE:02779'
s ROA % Range Over the Past 10 Years
Min: 5.52 Med: 9.26 Max: 16.86
Current: 6.94
During the past 12 years, China Xinhua Education Group's highest ROA % was 16.86%. The lowest was 5.52%. And the median was 9.26%.
HKSE:02779's ROA % is ranked better than 67.42% of 264
companies
in the Education industry
Industry Median: 3.9
vs HKSE:02779: 6.94
China Xinhua Education Group (HKSE:02779) 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.
China Xinhua Education Group ROA % Related Terms
China Xinhua Education 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.
For the Education & Training Services subindustry, China Xinhua Education 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 Xinhua Education Group ROA % vs Education Industry
For the Education industry and Consumer Defensive sector, China Xinhua Education Group's ROA % distribution charts can be found below:
* The bar in red indicates where China Xinhua Education Group'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.
China Xinhua Education Group (HKSE:02779) has a ROA % of 3.34% 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 China Xinhua Education Group and its competitors. This is 64% below median its historical median of 9.26. Over the past decade, China Xinhua Education Group's ROA % has ranged from 5.52 to 16.86. According to the industry distribution chart, China Xinhua Education Group ranks #86 out of 264 companies in the Education industry, placing it in the top 32.6%.
Is China Xinhua Education Group's ROA % too high?
China Xinhua Education Group's current ROA % of 3.34% is 64% below median its 10-year median of 9.26. Over the past 10 years, this metric has ranged from a low of 5.52 to a high of 16.86. The Education industry median ROA % is 3.90. China Xinhua Education Group's value of 3.34% is 14.4% below this industry median. Based on the distribution chart, China Xinhua Education Group ranks #86 out of 264 companies in the Education industry, which is above the industry midpoint. Overall, China Xinhua Education Group has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Xinhua Education Group's ROA % compare to EDU and TAL?
According to the Education industry distribution chart, China Xinhua Education Group ranks #86 out of 264 companies for ROA %. This puts China Xinhua Education Group in the upper half of its industry. The industry median ROA % is 3.90. China Xinhua Education Group's value of 3.34% is 14.4% below this benchmark. Historically, China Xinhua Education Group's own ROA % has ranged from 5.52 to 16.86 over the past decade. While the company's 10-year median is 9.26 vs. the industry median of 3.90, China Xinhua Education 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 3.90, based on 264 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 Xinhua Education Group's current ROA % of 3.34% is 14.4% 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 Xinhua Education Group and its competitors. For the Education industry, the median ROA % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Xinhua Education Group's current ROA % is 3.34%, which is 64% below median its own 10-year median of 9.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Xinhua Education Group stock overvalued right now?
Based on GuruFocus' analysis, China Xinhua Education Group (HKSE:02779) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.68, compared to a current price of HK$0.30 — trading 56.6% below its estimated fair value. The current ROA % is 3.34%, which is 64% below median its 10-year median of 9.26 and 14.4% below the Education industry median of 3.90. China Xinhua Education Group's overall GF Score™ is 62/100 with 7 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 Xinhua Education Group (HKSE:02779), the current ROA % is 3.34% 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 China Xinhua Education Group (HKSE:02779) Overvalued in 2026?
Based on GuruFocus' analysis, China Xinhua Education Group stock appears to be undervalued.
The current stock price of HK$0.30 is trading 56.6% below its estimated GF Value™ of HK$0.68.
GuruFocus considers China Xinhua Education Group to be Possible Value Trap.
Key valuation signals for HKSE:02779:
ROA %: 3.34% (64% below median its 10-year median of 9.26)
GF Value™: HK$0.68 vs. price of HK$0.30 (56.6% below fair value)
Industry Position: 14.4% below the Education median (#86 of 264)
No single metric tells the full story. See the HKSE:02779 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Xinhua Education Group Ltd is principally engaged in the provision of education services in China. It mainly provides private formal higher education and formal secondary vocational education in the Yangtze River Delta. It currently operates four private schools, namely Anhui Xinhua University, School of Clinical Medicine jointly operated by the Group and Anhui Medical University, Hongshan College, a college jointly operated by the Group and Nanjing University of Finance & Economics Hongshan College, and Anhui Xinhua School. The company generates revenues from tuition fees, and boarding fees out of which tuition fees contribute the majority part.
62GF Score
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