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China Tobacco International (HK) Co (HKSE:06055) 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 (Jun. 2026) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
China Tobacco International (HK) Co ROA % Related Terms
China Tobacco International (HK) 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.
For the Tobacco subindustry, China Tobacco International (HK) 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.
China Tobacco International (HK) Co ROA % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, China Tobacco International (HK) Co's ROA % distribution charts can be found below:
* The bar in red indicates where China Tobacco International (HK) 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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
China Tobacco International (HK) Co (HKSE:06055) has a ROA % of 14.60% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on China Tobacco International (HK) Co and its competitors. This is 69% above median its historical median of 8.63. Over the past decade, China Tobacco International (HK) Co's ROA % has ranged from 3.18 to 16.40. According to the industry distribution chart, China Tobacco International (HK) Co ranks #18 out of 46 companies in the Tobacco Products industry, placing it in the top 39.1%.
Is China Tobacco International (HK) Co's ROA % too high?
China Tobacco International (HK) Co's current ROA % of 14.60% is 69% above median its 10-year median of 8.63. Over the past 10 years, this metric has ranged from a low of 3.18 to a high of 16.40. The Tobacco Products industry median ROA % is 6.02. China Tobacco International (HK) Co's value of 14.60% is 142.7% above this industry median. Based on the distribution chart, China Tobacco International (HK) Co ranks #18 out of 46 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, China Tobacco International (HK) Co has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Tobacco International (HK) Co's ROA % compare to PM and MO?
According to the Tobacco Products industry distribution chart, China Tobacco International (HK) Co ranks #18 out of 46 companies for ROA %. This puts China Tobacco International (HK) Co in the upper half of its industry. The industry median ROA % is 6.02. China Tobacco International (HK) Co's value of 14.60% is 142.7% above this benchmark. Historically, China Tobacco International (HK) Co's own ROA % has ranged from 3.18 to 16.40 over the past decade. While the company's 10-year median is 8.63 vs. the industry median of 6.02, China Tobacco International (HK) 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 Tobacco Products company?
The median ROA % among Tobacco Products companies is 6.02, based on 46 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 Tobacco International (HK) Co's current ROA % of 14.60% is 142.7% 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 China Tobacco International (HK) Co and its competitors. For the Tobacco Products industry, the median ROA % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tobacco International (HK) Co's current ROA % is 14.60%, which is 69% above median its own 10-year median of 8.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tobacco International (HK) Co stock overvalued right now?
Based on GuruFocus' analysis, China Tobacco International (HK) Co (HKSE:06055) is currently considered Fairly Valued. The stock's GF Value™ is HK$21.47, compared to a current price of HK$23.42 — trading 9.1% above its estimated fair value. The current ROA % is 14.60%, which is 69% above median its 10-year median of 8.63 and 142.7% above the Tobacco Products industry median of 6.02. China Tobacco International (HK) Co's overall GF Score™ is 88/100 with 2 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 Tobacco International (HK) Co (HKSE:06055), the current ROA % is 14.60% as of Jun. 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 China Tobacco International (HK) Co (HKSE:06055) Overvalued in 2026?
Based on GuruFocus' analysis, China Tobacco International (HK) Co stock appears to be overvalued.
The current stock price of HK$23.42 is trading 9.1% above its estimated GF Value™ of HK$21.47.
GuruFocus considers China Tobacco International (HK) Co to be Fairly Valued.
Key valuation signals for HKSE:06055:
ROA %: 14.60% (69% above median its 10-year median of 8.63)
GF Value™: HK$21.47 vs. price of HK$23.42 (9.1% above fair value)
Industry Position: 142.7% above the Tobacco Products median (#18 of 46)
No single metric tells the full story. See the HKSE:06055 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Tobacco International (HK) Co Ltd is engaged in the tobacco business. It operates through various segments namely the Tobacco Leaf Products Export Business, the Tobacco Leaf Product Import Business, the Cigarettes Export Business, the New Tobacco Product Export Business, and the Brazil Operation Business. The company's geographical segments are China (excluding the SARs), Indonesia, Korea, Hong Kong, Philippines, Vietnam, Brazil, Belgium, Poland, Paraguay, Egypt, and others, of which it derives maximum revenue from the PRC. It earns maximum revenue from the Tobacco Leaf Product Import Business.
88GF Score
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