Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
South China Vocational Education Group Co (HKSE:06913) 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.
South China Vocational Education Group Co ROA % Related Terms
South China Vocational Education 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.
South China Vocational Education Group Co ROA % Chart
South China Vocational Education Group Co Annual Data
For the Education & Training Services subindustry, South China Vocational Education Group 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.
South China Vocational Education Group Co ROA % vs Education 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.
South China Vocational Education Group Co (HKSE:06913) has a ROA % of -10.59% 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 South China Vocational Education Group Co and its competitors. According to the industry distribution chart, South China Vocational Education Group Co ranks #201 out of 263 companies in the Education industry, placing it in the top 76.4%.
Is South China Vocational Education Group Co's ROA % too high?
South China Vocational Education Group Co's current ROA % is -10.59%. Based on the distribution chart, South China Vocational Education Group Co ranks #201 out of 263 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, South China Vocational Education Group Co has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does South China Vocational Education Group Co's ROA % compare to EDU and TAL?
According to the Education industry distribution chart, South China Vocational Education Group Co ranks #201 out of 263 companies for ROA %. This places South China Vocational Education Group Co in the lower half of its industry. The industry median ROA % is 3.90. 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 263 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. 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 South China Vocational Education Group Co 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. South China Vocational Education Group Co's current ROA % is -10.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South China Vocational Education Group Co stock overvalued right now?
Based on GuruFocus' analysis, South China Vocational Education Group Co (HKSE:06913) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.48, compared to a current price of HK$0.13 — trading 72.9% below its estimated fair value. The current ROA % is -10.59%. South China Vocational Education Group Co's overall GF Score™ is 60/100 with 4 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 South China Vocational Education Group Co (HKSE:06913), the current ROA % is -10.59% 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 South China Vocational Education Group Co (HKSE:06913) Overvalued in 2026?
Based on GuruFocus' analysis, South China Vocational Education Group Co stock appears to be undervalued.
The current stock price of HK$0.13 is trading 72.9% below its estimated GF Value™ of HK$0.48.
GuruFocus considers South China Vocational Education Group Co to be Possible Value Trap.
Key valuation signals for HKSE:06913:
ROA %: -10.59%
GF Value™: HK$0.48 vs. price of HK$0.13 (72.9% below fair value)
No single metric tells the full story. See the HKSE:06913 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
South China Vocational Education Group Co Ltd is an investment holding company. Along with its subsidiaries, it is engaged in providing private higher vocational education in the People's Republic of China (PRC). The Group's two core schools, Lingnan Vocational and Technical College and Lingnan Modern Technician College in Guangzhou and Qingyuan, offer several majors, covering TMT industries such as Internet, e-commerce, telecommunications, software, and animation, as well as emerging industries such as the health industry.
60GF Score
Get the complete analysis for HKSE:06913
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:06913 has been successfully added to your 
