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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Horizon Construction Development's annualizedNet Income for the quarter that ended in Jun. 2026 was HK$85 Mil.
Horizon Construction Development's average Total Assets over the quarter that ended in Jun. 2026 was HK$40,795 Mil. Therefore, Horizon Construction Development's annualized ROA % for the quarter that ended in Jun. 2026 was 0.21%.
Horizon Construction Development (HKSE:09930) 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 (Jun. 2026) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
Horizon Construction Development ROA % Related Terms
Horizon Construction Development 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 Rental & Leasing Services subindustry, Horizon Construction Development'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.
Horizon Construction Development ROA % vs Business Services Industry
For the Business Services industry and Industrials sector, Horizon Construction Development's ROA % distribution charts can be found below:
* The bar in red indicates where Horizon Construction Development'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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Horizon Construction Development (HKSE:09930) has a ROA % of 0.21% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Horizon Construction Development and its competitors. This is 92% below median its historical median of 2.75. Over the past decade, Horizon Construction Development's ROA % has ranged from 0.41 to 3.37. According to the industry distribution chart, Horizon Construction Development ranks #775 out of 1093 companies in the Business Services industry, placing it in the top 70.9%.
Is Horizon Construction Development's ROA % too high?
Horizon Construction Development's current ROA % of 0.21% is 92% below median its 10-year median of 2.75. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 3.37. The Business Services industry median ROA % is 3.73. Horizon Construction Development's value of 0.21% is 94.4% below this industry median. Based on the distribution chart, Horizon Construction Development ranks #775 out of 1093 companies in the Business Services industry, which is below the industry midpoint. Overall, Horizon Construction Development has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Horizon Construction Development's ROA % compare to URI and SUNB?
According to the Business Services industry distribution chart, Horizon Construction Development ranks #775 out of 1093 companies for ROA %. This places Horizon Construction Development in the lower half of its industry. The industry median ROA % is 3.73. Horizon Construction Development's value of 0.21% is 94.4% below this benchmark. Historically, Horizon Construction Development's own ROA % has ranged from 0.41 to 3.37 over the past decade. While the company's 10-year median is 2.75 vs. the industry median of 3.73, Horizon Construction Development 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 Business Services company?
The median ROA % among Business Services companies is 3.73, based on 1,093 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. Horizon Construction Development's current ROA % of 0.21% is 94.4% 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 Horizon Construction Development and its competitors. For the Business Services industry, the median ROA % is 3.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Horizon Construction Development's current ROA % is 0.21%, which is 92% below median its own 10-year median of 2.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Horizon Construction Development stock overvalued right now?
Based on GuruFocus' analysis, Horizon Construction Development (HKSE:09930) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.20, compared to a current price of HK$0.74 — trading 38.8% below its estimated fair value. The current ROA % is 0.21%, which is 92% below median its 10-year median of 2.75 and 94.4% below the Business Services industry median of 3.73. Horizon Construction Development's overall GF Score™ is 82/100 with 9 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 Horizon Construction Development (HKSE:09930), the current ROA % is 0.21% as of Jun. 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 Horizon Construction Development (HKSE:09930) Overvalued in 2026?
Based on GuruFocus' analysis, Horizon Construction Development stock appears to be undervalued.
The current stock price of HK$0.74 is trading 38.8% below its estimated GF Value™ of HK$1.20.
GuruFocus considers Horizon Construction Development to be Possible Value Trap.
Key valuation signals for HKSE:09930:
ROA %: 0.21% (92% below median its 10-year median of 2.75)
GF Value™: HK$1.20 vs. price of HK$0.74 (38.8% below fair value)
Industry Position: 94.4% below the Business Services median (#775 of 1093)
No single metric tells the full story. See the HKSE:09930 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Horizon Construction Development Ltd is an equipment operation service provider. The Group is committed to providing one-stop comprehensive solutions of products and services for domestic and overseas clients in the construction and industrial sectors. The company has three reportable operating segments, Operating lease services, Engineering and technical services, and Asset management and other services. A majority of its revenue is generated from the Operating lease services segment that includes aerial work platform, neo-excavation support system, neo-formwork system and other equipment.
82GF Score
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