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Chong Fai Jewellery Group Holdings Co (HKSE:08537) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
Chong Fai Jewellery Group Holdings Co ROA % Related Terms
Chong Fai Jewellery Group Holdings 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 Luxury Goods subindustry, Chong Fai Jewellery Group Holdings 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.
Chong Fai Jewellery Group Holdings Co ROA % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Chong Fai Jewellery Group Holdings Co's ROA % distribution charts can be found below:
* The bar in red indicates where Chong Fai Jewellery Group Holdings 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Chong Fai Jewellery Group Holdings Co (HKSE:08537) has a ROA % of 16.06% 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 Chong Fai Jewellery Group Holdings Co and its competitors. This is 1812% above median its historical median of 0.84. According to the industry distribution chart, Chong Fai Jewellery Group Holdings Co ranks #175 out of 1139 companies in the Retail - Cyclical industry, placing it in the top 15.4%.
Is Chong Fai Jewellery Group Holdings Co's ROA % too high?
Chong Fai Jewellery Group Holdings Co's current ROA % of 16.06% is 1812% above median its 10-year median of 0.84. The Retail - Cyclical industry median ROA % is 2.75. Chong Fai Jewellery Group Holdings Co's value of 16.06% is 484% above this industry median. Based on the distribution chart, Chong Fai Jewellery Group Holdings Co ranks #175 out of 1139 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Chong Fai Jewellery Group Holdings Co has a GF Score™ of 50/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chong Fai Jewellery Group Holdings Co's ROA % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Chong Fai Jewellery Group Holdings Co ranks #175 out of 1139 companies for ROA %. This places Chong Fai Jewellery Group Holdings Co in the top 15% of its industry — outperforming the majority of peers. The industry median ROA % is 2.75. Chong Fai Jewellery Group Holdings Co's value of 16.06% is 484% above this benchmark. While the company's 10-year median is 0.84 vs. the industry median of 2.75, Chong Fai Jewellery Group Holdings 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 Retail - Cyclical company?
The median ROA % among Retail - Cyclical companies is 2.75, based on 1,139 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. Chong Fai Jewellery Group Holdings Co's current ROA % of 16.06% is 484% 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 Chong Fai Jewellery Group Holdings Co and its competitors. For the Retail - Cyclical industry, the median ROA % is 2.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chong Fai Jewellery Group Holdings Co's current ROA % is 16.06%, which is 1812% above median its own 10-year median of 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chong Fai Jewellery Group Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Chong Fai Jewellery Group Holdings Co (HKSE:08537) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.16, compared to a current price of HK$0.20 — trading 25% above its estimated fair value. The current ROA % is 16.06%, which is 1812% above median its 10-year median of 0.84 and 484% above the Retail - Cyclical industry median of 2.75. Chong Fai Jewellery Group Holdings Co's overall GF Score™ is 50/100 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 Chong Fai Jewellery Group Holdings Co (HKSE:08537), the current ROA % is 16.06% 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 Chong Fai Jewellery Group Holdings Co (HKSE:08537) Overvalued in 2026?
Based on GuruFocus' analysis, Chong Fai Jewellery Group Holdings Co stock appears to be overvalued.
The current stock price of HK$0.20 is trading 25% above its estimated GF Value™ of HK$0.16.
GuruFocus considers Chong Fai Jewellery Group Holdings Co to be Modestly Overvalued.
Key valuation signals for HKSE:08537:
ROA %: 16.06% (1812% above median its 10-year median of 0.84)
GF Value™: HK$0.16 vs. price of HK$0.20 (25% above fair value)
Industry Position: 484% above the Retail - Cyclical median (#175 of 1139)
No single metric tells the full story. See the HKSE:08537 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chong Fai Jewellery Group Holdings Co Ltd is a vertically integrated jeweler based in Hong Kong and is engaged in the retail of its products through its network of seven retail stores under the brand name of Chong Fai Jewellery strategically located in Kowloon and the New Territories. The Group's principal products are jewellery products, including gem-set jewelry, and gold jewelry products. The firm generates the majority of its revenue from the retail operations of a jewelry shop. The company operates in Hong Kong and the PRC.
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