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Hong Kong Zcloud Technology Construction (HKSE:09900) 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.
Hong Kong Zcloud Technology Construction ROA % Related Terms
Hong Kong Zcloud Technology Construction 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.
Hong Kong Zcloud Technology Construction ROA % Chart
Hong Kong Zcloud Technology Construction Annual Data
For the Engineering & Construction subindustry, Hong Kong Zcloud Technology Construction'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.
Hong Kong Zcloud Technology Construction ROA % vs Construction 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Hong Kong Zcloud Technology Construction (HKSE:09900) has a ROA % of 1.87% 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 Hong Kong Zcloud Technology Construction and its competitors. This is 77% below median its historical median of 8.28. Over the past decade, Hong Kong Zcloud Technology Construction's ROA % has ranged from 1.76 to 26.77. According to the industry distribution chart, Hong Kong Zcloud Technology Construction ranks #1031 out of 1787 companies in the Construction industry, placing it in the top 57.7%.
Is Hong Kong Zcloud Technology Construction's ROA % too high?
Hong Kong Zcloud Technology Construction's current ROA % of 1.87% is 77% below median its 10-year median of 8.28. Over the past 10 years, this metric has ranged from a low of 1.76 to a high of 26.77. The Construction industry median ROA % is 2.87. Hong Kong Zcloud Technology Construction's value of 1.87% is 34.8% below this industry median. Based on the distribution chart, Hong Kong Zcloud Technology Construction ranks #1031 out of 1787 companies in the Construction industry, which is below the industry midpoint. Overall, Hong Kong Zcloud Technology Construction has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Kong Zcloud Technology Construction's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Hong Kong Zcloud Technology Construction ranks #1031 out of 1787 companies for ROA %. This places Hong Kong Zcloud Technology Construction in the lower half of its industry. The industry median ROA % is 2.87. Hong Kong Zcloud Technology Construction's value of 1.87% is 34.8% below this benchmark. Historically, Hong Kong Zcloud Technology Construction's own ROA % has ranged from 1.76 to 26.77 over the past decade. While the company's 10-year median is 8.28 vs. the industry median of 2.87, Hong Kong Zcloud Technology Construction has consistently been below 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 Construction company?
The median ROA % among Construction companies is 2.87, based on 1,787 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. Hong Kong Zcloud Technology Construction's current ROA % of 1.87% is 34.8% below 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 Hong Kong Zcloud Technology Construction and its competitors. For the Construction industry, the median ROA % is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Kong Zcloud Technology Construction's current ROA % is 1.87%, which is 77% below median its own 10-year median of 8.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Kong Zcloud Technology Construction stock overvalued right now?
Based on GuruFocus' analysis, Hong Kong Zcloud Technology Construction (HKSE:09900) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$5.53 — trading 3150% above its estimated fair value. The current ROA % is 1.87%, which is 77% below median its 10-year median of 8.28 and 34.8% below the Construction industry median of 2.87. Hong Kong Zcloud Technology Construction'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 Hong Kong Zcloud Technology Construction (HKSE:09900), the current ROA % is 1.87% 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 Hong Kong Zcloud Technology Construction (HKSE:09900) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Kong Zcloud Technology Construction stock appears to be overvalued.
The current stock price of HK$5.53 is trading 3150% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Hong Kong Zcloud Technology Construction to be Significantly Overvalued.
Key valuation signals for HKSE:09900:
ROA %: 1.87% (77% below median its 10-year median of 8.28)
GF Value™: HK$0.17 vs. price of HK$5.53 (3150% above fair value)
Industry Position: 34.8% below the Construction median (#1031 of 1787)
No single metric tells the full story. See the HKSE:09900 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Kong Zcloud Technology Construction Ltd formerly Gain Plus Holdings Ltd is a construction contractor company. The company provides building construction services and repair, maintenance, addition, and alteration services (RMAA). The services undertaken by main contractors and subcontractors include site investigation, demolition, structural alternation, and additional work. In addition, its RMAA services of the company comprise general upkeep, restoration, and renovation of existing facilities and components of buildings and surroundings, and services consisting of civil works for new buildings such as lift towers, soccer fields, and walkways. The company earns the majority of its revenue from the provision of RMAA Services.
60GF Score
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