ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NetEase Cloud Music's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$1,906 Mil.
NetEase Cloud Music's average Total Assets over the quarter that ended in Dec. 2025 was HK$17,448 Mil. Therefore, NetEase Cloud Music's annualized ROA % for the quarter that ended in Dec. 2025 was 10.92%.
The historical rank and industry rank for NetEase Cloud Music's ROA % or its related term are showing as below:
HKSE:09899'
s ROA % Range Over the Past 10 Years
Min: -35.69 Med: -12.79 Max: 18.58
Current: 18.3
During the past 8 years, NetEase Cloud Music's highest ROA % was 18.58%. The lowest was -35.69%. And the median was -12.79%.
HKSE:09899's ROA % is ranked better than 91.39% of 569
companies
in the Interactive Media industry
Industry Median: 0.67
vs HKSE:09899: 18.30
NetEase Cloud Music (HKSE:09899) 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.
NetEase Cloud Music ROA % Related Terms
NetEase Cloud Music ROA % Historical Data
* Premium members only.
The historical data trend for NetEase Cloud Music'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 Internet Content & Information subindustry, NetEase Cloud Music'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.
NetEase Cloud Music ROA % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase Cloud Music's ROA % distribution charts can be found below:
* The bar in red indicates where NetEase Cloud Music'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.
NetEase Cloud Music (HKSE:09899) has a ROA % of 10.92% 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 NetEase Cloud Music and its competitors. According to the industry distribution chart, NetEase Cloud Music ranks #49 out of 569 companies in the Interactive Media industry, placing it in the top 8.6%.
Is NetEase Cloud Music's ROA % too high?
NetEase Cloud Music's current ROA % is 10.92%. The Interactive Media industry median ROA % is 0.67. NetEase Cloud Music's value of 10.92% is 1529.9% above this industry median. Based on the distribution chart, NetEase Cloud Music ranks #49 out of 569 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, NetEase Cloud Music has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase Cloud Music's ROA % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, NetEase Cloud Music ranks #49 out of 569 companies for ROA %. This places NetEase Cloud Music in the top 9% of its industry — outperforming the majority of peers. The industry median ROA % is 0.67. NetEase Cloud Music's value of 10.92% is 1529.9% above this benchmark. 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 Interactive Media company?
The median ROA % among Interactive Media companies is 0.67, based on 569 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. NetEase Cloud Music's current ROA % of 10.92% is 1529.9% 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 NetEase Cloud Music and its competitors. For the Interactive Media industry, the median ROA % is 0.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase Cloud Music's current ROA % is 10.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetEase Cloud Music stock overvalued right now?
Based on GuruFocus' analysis, NetEase Cloud Music (HKSE:09899) is currently considered Fairly Valued. The stock's GF Value™ is HK$107.00, compared to a current price of HK$113.10 — trading 5.7% above its estimated fair value. The current ROA % is 10.92% and 1529.9% above the Interactive Media industry median of 0.67. NetEase Cloud Music's overall GF Score™ is 71/100 with 3 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 NetEase Cloud Music (HKSE:09899), the current ROA % is 10.92% 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 NetEase Cloud Music (HKSE:09899) Overvalued in 2026?
Based on GuruFocus' analysis, NetEase Cloud Music stock appears to be overvalued.
The current stock price of HK$113.10 is trading 5.7% above its estimated GF Value™ of HK$107.00.
GuruFocus considers NetEase Cloud Music to be Fairly Valued.
Key valuation signals for HKSE:09899:
ROA %: 10.92%
GF Value™: HK$107.00 vs. price of HK$113.10 (5.7% above fair value)
Industry Position: 1529.9% above the Interactive Media median (#49 of 569)
No single metric tells the full story. See the HKSE:09899 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressNo. 353 Benjing Avenue, Room 1201, Block A, Hangzhou International Expo Center, Qianjiang Century City, Xiaoshan District, Zhejiang Province, Hangzhou, CHN
NetEase Cloud Music is China's second-largest music streaming platform, founded in 2013 as a subsidiary of NetEase. NetEase remains the controlling shareholder with a 59.4% stake. The company is headquartered in Hangzhou.The platform's business model revolves around a core music streaming service sold on a subscription basis, paired with a live streaming service where users purchase virtual items and gift them to performers.
71GF Score
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