HKVTY's ROA % is ranked worse than 56.36% of 511
companies
in the Utilities - Regulated industry
Industry Median: 3.02
vs HKVTY: 2.66
HK Electric Investments and HK Electric Investments (OTCPK:HKVTY) 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.
HK Electric Investments and HK Electric Investments ROA % Related Terms
HK Electric Investments and HK Electric Investments 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.
HK Electric Investments and HK Electric Investments ROA % Chart
HK Electric Investments and HK Electric Investments Annual Data
* 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.
HK Electric Investments and HK Electric Investments ROA % vs Utilities - Regulated 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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
HK Electric Investments and HK Electric Investments (HKVTY) has a ROA % of 3.64% 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 HK Electric Investments and HK Electric Investments and its competitors. This is 38% above median its historical median of 2.63. Over the past decade, HK Electric Investments and HK Electric Investments' ROA % has ranged from 2.14 to 3.24. According to the industry distribution chart, HK Electric Investments and HK Electric Investments ranks #288 out of 511 companies in the Utilities - Regulated industry, placing it in the top 56.4%.
Is HK Electric Investments and HK Electric Investments' ROA % too high?
HK Electric Investments and HK Electric Investments' current ROA % of 3.64% is 38% above median its 10-year median of 2.63. Over the past 10 years, this metric has ranged from a low of 2.14 to a high of 3.24. The Utilities - Regulated industry median ROA % is 3.02. HK Electric Investments and HK Electric Investments' value of 3.64% is 20.5% above this industry median. Based on the distribution chart, HK Electric Investments and HK Electric Investments ranks #288 out of 511 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, HK Electric Investments and HK Electric Investments has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HK Electric Investments and HK Electric Investments' ROA % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, HK Electric Investments and HK Electric Investments ranks #288 out of 511 companies for ROA %. This places HK Electric Investments and HK Electric Investments in the lower half of its industry. The industry median ROA % is 3.02. HK Electric Investments and HK Electric Investments' value of 3.64% is 20.5% above this benchmark. Historically, HK Electric Investments and HK Electric Investments' own ROA % has ranged from 2.14 to 3.24 over the past decade. While the company's 10-year median is 2.63 vs. the industry median of 3.02, HK Electric Investments and HK Electric Investments 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 Utilities - Regulated company?
The median ROA % among Utilities - Regulated companies is 3.02, based on 511 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. HK Electric Investments and HK Electric Investments's current ROA % of 3.64% is 20.5% 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 HK Electric Investments and HK Electric Investments and its competitors. For the Utilities - Regulated industry, the median ROA % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HK Electric Investments and HK Electric Investments's current ROA % is 3.64%, which is 38% above median its own 10-year median of 2.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HK Electric Investments and HK Electric Investments stock overvalued right now?
Based on GuruFocus' analysis, HK Electric Investments and HK Electric Investments (HKVTY) is currently considered Modestly Overvalued. The stock's GF Value™ is $6.77, compared to a current price of $7.80 — trading 15.2% above its estimated fair value. The current ROA % is 3.64%, which is 38% above median its 10-year median of 2.63 and 20.5% above the Utilities - Regulated industry median of 3.02. HK Electric Investments and HK Electric Investments' overall GF Score™ is 76/100 with 6 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 HK Electric Investments and HK Electric Investments (HKVTY), the current ROA % is 3.64% 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 HK Electric Investments and HK Electric Investments (HKVTY) Overvalued in 2026?
Based on GuruFocus' analysis, HK Electric Investments and HK Electric Investments stock appears to be overvalued.
The current stock price of $7.80 is trading 15.2% above its estimated GF Value™ of $6.77.
GuruFocus considers HK Electric Investments and HK Electric Investments to be Modestly Overvalued.
Key valuation signals for HKVTY:
ROA %: 3.64% (38% above median its 10-year median of 2.63)
GF Value™: $6.77 vs. price of $7.80 (15.2% above fair value)
Industry Position: 20.5% above the Utilities - Regulated median (#288 of 511)
No single metric tells the full story. See the HKVTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HK Electric Investments and HK Electric Investments Business Description
HK Electric Investments and HK Electric Investments Ltd is a fixed single investment trust in Hong Kong with a focus on the energy sector. The company is a vertically integrated power utility and its operations comprise the generation, transmission, distribution and supply of electricity to Hong Kong Island and Lamma Island. The company have one reporting segment which is the generation and supply of electricity to Hong Kong Island and Lamma Island.
76GF Score
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