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Neutech GroupHKSE:09616 +0.23%84 ROA % is 5.41% as of Dec. 2025, which is 14% below its 10-year median of 6.31. GuruFocus rates HKSE:09616 with a GF Score™ of 84/100 and a GF Value™ of HK$3.46 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 264 Education companies, Neutech Group ranks better than 60.23% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Neutech Group's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$444 Mil.
Neutech Group's average Total Assets over the quarter that ended in Dec. 2025 was HK$8,199 Mil. Therefore, Neutech Group's annualized ROA % for the quarter that ended in Dec. 2025 was 5.41%.
The historical rank and industry rank for Neutech Group's ROA % or its related term are showing as below:
HKSE:09616'
s ROA % Range Over the Past 10 Years
Min: 2.28 Med: 6.31 Max: 6.85
Current: 5.5
During the past 9 years, Neutech Group's highest ROA % was 6.85%. The lowest was 2.28%. And the median was 6.31%.
HKSE:09616's ROA % is ranked better than 60.23% of 264
companies
in the Education industry
Industry Median: 4
vs HKSE:09616: 5.50
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.
Neutech Group ROA % Related Terms
Neutech Group ROA % Historical Data
* Premium members only.
The historical data trend for Neutech Group'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.
For the Education & Training Services subindustry, Neutech 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.
Neutech Group ROA % vs Education Industry
For the Education industry and Consumer Defensive sector, Neutech Group's ROA % distribution charts can be found below:
* The bar in red indicates where Neutech 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.
Neutech Group (HKSE:09616) has a ROA % of 5.41% 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 Neutech Group and its competitors. This is 14% below median its historical median of 6.31. Over the past decade, Neutech Group's ROA % has ranged from 2.28 to 6.85. According to the industry distribution chart, Neutech Group ranks #105 out of 264 companies in the Education industry, placing it in the top 39.8%.
Is Neutech Group's ROA % too high?
Neutech Group's current ROA % of 5.41% is 14% below median its 10-year median of 6.31. Over the past 10 years, this metric has ranged from a low of 2.28 to a high of 6.85. The Education industry median ROA % is 4.00. Neutech Group's value of 5.41% is 35.3% above this industry median. Based on the distribution chart, Neutech Group ranks #105 out of 264 companies in the Education industry, which is above the industry midpoint. Overall, Neutech Group has a GF Score™ of 84/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Neutech Group's ROA % compare to EDU and TAL?
According to the Education industry distribution chart, Neutech Group ranks #105 out of 264 companies for ROA %. This puts Neutech Group in the upper half of its industry. The industry median ROA % is 4.00. Neutech Group's value of 5.41% is 35.3% above this benchmark. Historically, Neutech Group's own ROA % has ranged from 2.28 to 6.85 over the past decade. While the company's 10-year median is 6.31 vs. the industry median of 4.00, Neutech Group 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 an Education company?
The median ROA % among Education companies is 4.00, 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. Neutech Group's current ROA % of 5.41% is 35.3% 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 Neutech Group and its competitors. For the Education industry, the median ROA % is 4.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neutech Group's current ROA % is 5.41%, which is 14% below median its own 10-year median of 6.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neutech Group stock overvalued right now?
Based on GuruFocus' analysis, Neutech Group (HKSE:09616) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.46, compared to a current price of HK$2.14 — trading 38.2% below its estimated fair value. The current ROA % is 5.41%, which is 14% below median its 10-year median of 6.31 and 35.3% above the Education industry median of 4.00. Neutech Group's overall GF Score™ is 84/100 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 Neutech Group (HKSE:09616), the current ROA % is 5.41% 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 Neutech Group (HKSE:09616) Overvalued in 2026?
Based on GuruFocus' analysis, Neutech Group stock appears to be undervalued.
The current stock price of HK$2.14 is trading 38.2% below its estimated GF Value™ of HK$3.46.
GuruFocus considers Neutech Group to be Possible Value Trap.
Key valuation signals for HKSE:09616:
ROA %: 5.41% (14% below median its 10-year median of 6.31)
GF Value™: HK$3.46 vs. price of HK$2.14 (38.2% below fair value)
Industry Position: 35.3% above the Education median (#105 of 264)
No single metric tells the full story. See the HKSE:09616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neutech Group Ltd is a China-based investment holding company principally engaged in providing full-time formal higher education services, continuing education services, as well as education resources and apprenticeship programmes. Its full-time formal higher education services and continuing education services are operated by three universities and eight training schools. Its education resources and apprenticeship programme are offered by few of its subsidiaries. Its operating segments are as follows: education services; medical services; industry management and services; and elderly care technology and services. It generates maximum revenue from Education services segment. The Group operated within one geographical location and all of its revenue is also generated from Chinese mainland.
84GF Score
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