Hongli GroupHLP +8.35%36 ROA % is 2.72% as of Dec. 2025, which is 73% below its 10-year median of 10.11. GuruFocus rates HLP with a GF Score™ of 36/100 and a GF Value™ of $0.35 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 637 Steel companies, Hongli Group ranks better than 57.61% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hongli Group's annualizedNet Income for the quarter that ended in Dec. 2025 was $1.91 Mil.
Hongli Group's average Total Assets over the quarter that ended in Dec. 2025 was $70.02 Mil. Therefore, Hongli Group's annualized ROA % for the quarter that ended in Dec. 2025 was 2.72%.
The historical rank and industry rank for Hongli Group's ROA % or its related term are showing as below:
HLP'
s ROA % Range Over the Past 10 Years
Min: -3.87 Med: 10.11 Max: 20.98
Current: 2.84
During the past 7 years, Hongli Group's highest ROA % was 20.98%. The lowest was -3.87%. And the median was 10.11%.
HLP's ROA % is ranked better than 57.61% of 637
companies
in the Steel industry
Industry Median: 1.92
vs HLP: 2.84
Hongli Group (NAS:HLP) 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.
Hongli Group ROA % Related Terms
Hongli Group ROA % Historical Data
* Premium members only.
The historical data trend for Hongli Group'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 Steel subindustry, Hongli Group'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.
Hongli Group ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, Hongli Group's ROA % distribution charts can be found below:
* The bar in red indicates where Hongli Group'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.
Hongli Group (HLP) has a ROA % of 2.72% 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 Hongli Group and its competitors. This is 73% below median its historical median of 10.11. According to the industry distribution chart, Hongli Group ranks #270 out of 637 companies in the Steel industry, placing it in the top 42.4%.
Is Hongli Group's ROA % too high?
Hongli Group's current ROA % of 2.72% is 73% below median its 10-year median of 10.11. The Steel industry median ROA % is 1.92. Hongli Group's value of 2.72% is 41.7% above this industry median. Based on the distribution chart, Hongli Group ranks #270 out of 637 companies in the Steel industry, which is above the industry midpoint. Overall, Hongli Group has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongli Group's ROA % compare to HUDI and ZKIN?
According to the Steel industry distribution chart, Hongli Group ranks #270 out of 637 companies for ROA %. This puts Hongli Group in the upper half of its industry. The industry median ROA % is 1.92. Hongli Group's value of 2.72% is 41.7% above this benchmark. While the company's 10-year median is 10.11 vs. the industry median of 1.92, Hongli Group 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 a Steel company?
The median ROA % among Steel companies is 1.92, based on 637 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. Hongli Group's current ROA % of 2.72% is 41.7% 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 Hongli Group and its competitors. For the Steel industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Group's current ROA % is 2.72%, which is 73% below median its own 10-year median of 10.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Group stock overvalued right now?
Based on GuruFocus' analysis, Hongli Group (HLP) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $0.53 — trading 50.5% above its estimated fair value. The current ROA % is 2.72%, which is 73% below median its 10-year median of 10.11 and 41.7% above the Steel industry median of 1.92. Hongli Group's overall GF Score™ is 36/100 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 Hongli Group (HLP), the current ROA % is 2.72% 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 Hongli Group (HLP) Overvalued in 2026?
Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued.
The current stock price of $0.53 is trading 50.5% above its estimated GF Value™ of $0.35.
GuruFocus considers Hongli Group to be Significantly Overvalued.
Key valuation signals for HLP:
ROA %: 2.72% (73% below median its 10-year median of 10.11)
GF Value™: $0.35 vs. price of $0.53 (50.5% above fair value)
Industry Position: 41.7% above the Steel median (#270 of 637)
No single metric tells the full story. See the HLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongli Group Inc is an offshore holding company. Through its subsidiaries, it is engaged in the cold-rolled steel profile manufacturing in China. Its main business operation focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture, and transportation industries. The group operates in a single segment, which manufactures and sells agricultural machinery cab assemblies, construction machinery cab assemblies, excavator cab assemblies, and special-shaped steel pipes. It generates the majority of its reveneue from PRC.
36GF Score
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