The Hongkong and Shanghai HotelsHKSHY 66 ROA % is 2.20% as of Dec. 2025, which is 412% above its 10-year median of 0.43. GuruFocus rates HKSHY with a GF Score™ of 66/100 and a GF Value™ of $14.93 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 856 Travel & Leisure companies, The Hongkong and Shanghai Hotels ranks worse than 63.55% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Hongkong and Shanghai Hotels's annualizedNet Income for the quarter that ended in Dec. 2025 was $157 Mil.
The Hongkong and Shanghai Hotels's average Total Assets over the quarter that ended in Dec. 2025 was $7,102 Mil. Therefore, The Hongkong and Shanghai Hotels's annualized ROA % for the quarter that ended in Dec. 2025 was 2.20%.
HKSHY'
s ROA % Range Over the Past 10 Years
Min: -3.64 Med: 0.43 Max: 2.45
Current: 0.58
During the past 13 years, The Hongkong and Shanghai Hotels's highest ROA % was 2.45%. The lowest was -3.64%. And the median was 0.43%.
HKSHY's ROA % is ranked worse than 63.55% of 856
companies
in the Travel & Leisure industry
Industry Median: 2.375
vs HKSHY: 0.58
The Hongkong and Shanghai Hotels (OTCPK:HKSHY) 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.
The Hongkong and Shanghai Hotels ROA % Related Terms
The Hongkong and Shanghai Hotels 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 Lodging subindustry, The Hongkong and Shanghai Hotels'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.
The Hongkong and Shanghai Hotels ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's ROA % distribution charts can be found below:
* The bar in red indicates where The Hongkong and Shanghai Hotels'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.
The Hongkong and Shanghai Hotels (HKSHY) has a ROA % of 2.20% 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 The Hongkong and Shanghai Hotels and its competitors. This is 412% above median its historical median of 0.43. According to the industry distribution chart, The Hongkong and Shanghai Hotels ranks #544 out of 856 companies in the Travel & Leisure industry, placing it in the top 63.6%.
Is The Hongkong and Shanghai Hotels' ROA % too high?
The Hongkong and Shanghai Hotels' current ROA % of 2.20% is 412% above median its 10-year median of 0.43. The Travel & Leisure industry median ROA % is 2.38. The Hongkong and Shanghai Hotels' value of 2.20% is 7.4% below this industry median. Based on the distribution chart, The Hongkong and Shanghai Hotels ranks #544 out of 856 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, The Hongkong and Shanghai Hotels has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Hongkong and Shanghai Hotels' ROA % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Hongkong and Shanghai Hotels ranks #544 out of 856 companies for ROA %. This places The Hongkong and Shanghai Hotels in the lower half of its industry. The industry median ROA % is 2.38. The Hongkong and Shanghai Hotels' value of 2.20% is 7.4% below this benchmark. While the company's 10-year median is 0.43 vs. the industry median of 2.38, The Hongkong and Shanghai Hotels 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 Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.38, based on 856 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. The Hongkong and Shanghai Hotels's current ROA % of 2.20% is 7.4% 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 The Hongkong and Shanghai Hotels and its competitors. For the Travel & Leisure industry, the median ROA % is 2.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hongkong and Shanghai Hotels's current ROA % is 2.20%, which is 412% above median its own 10-year median of 0.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hongkong and Shanghai Hotels stock overvalued right now?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels (HKSHY) is currently considered Modestly Undervalued. The stock's GF Value™ is $14.93, compared to a current price of $13.35 — trading 10.6% below its estimated fair value. The current ROA % is 2.20%, which is 412% above median its 10-year median of 0.43 and 7.4% below the Travel & Leisure industry median of 2.38. The Hongkong and Shanghai Hotels' overall GF Score™ is 66/100 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 The Hongkong and Shanghai Hotels (HKSHY), the current ROA % is 2.20% 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 The Hongkong and Shanghai Hotels (HKSHY) Overvalued in 2026?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels stock appears to be undervalued.
The current stock price of $13.35 is trading 10.6% below its estimated GF Value™ of $14.93.
GuruFocus considers The Hongkong and Shanghai Hotels to be Modestly Undervalued.
Key valuation signals for HKSHY:
ROA %: 2.20% (412% above median its 10-year median of 0.43)
GF Value™: $14.93 vs. price of $13.35 (10.6% below fair value)
Industry Position: 7.4% below the Travel & Leisure median (#544 of 856)
No single metric tells the full story. See the HKSHY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hongkong and Shanghai Hotels Business Description
The Hongkong and Shanghai Hotels Ltd is a luxury hospitality and real estate group. It owns and operates hotel properties under the Peninsula brand located in city centres across Asia, the U.S., and Europe. The company's assets comprise a small number of ultra-luxury hotels, real estate assets, and tourism assets, including The Peak Tram, one of Hong Kong's tourist attractions. The group's reportable segments are: Hotels, Commercial Properties, Peak Tram, Retail, and Others. Maximum revenue is generated from its Hotels segment, which includes revenue generated from operating hotels, leasing of commercial shopping arcades, and office premises located within the hotel buildings. Geographically, the group generates the majority of its revenue from Greater China.
66GF Score
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