Hoechst PakistanKAR:HPL +0.08%86 ROA % is 19.15% as of Mar. 2026, which is 106% above its 10-year median of 9.30. GuruFocus rates KAR:HPL with a GF Score™ of 86/100 and a GF Value™ of ₨3,253.76 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,006 Drug Manufacturers companies, Hoechst Pakistan ranks better than 96.72% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hoechst Pakistan's annualizedNet Income for the quarter that ended in Mar. 2026 was ₨2,844 Mil.
Hoechst Pakistan's average Total Assets over the quarter that ended in Mar. 2026 was ₨14,852 Mil. Therefore, Hoechst Pakistan's annualized ROA % for the quarter that ended in Mar. 2026 was 19.15%.
The historical rank and industry rank for Hoechst Pakistan's ROA % or its related term are showing as below:
KAR:HPL'
s ROA % Range Over the Past 10 Years
Min: 1.54 Med: 9.3 Max: 21.36
Current: 21.36
During the past 13 years, Hoechst Pakistan's highest ROA % was 21.36%. The lowest was 1.54%. And the median was 9.30%.
KAR:HPL's ROA % is ranked better than 96.72% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 2.685
vs KAR:HPL: 21.36
Hoechst Pakistan (KAR:HPL) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (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.
Hoechst Pakistan ROA % Related Terms
Hoechst Pakistan ROA % Historical Data
* Premium members only.
The historical data trend for Hoechst Pakistan'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 Drug Manufacturers - General subindustry, Hoechst Pakistan'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.
Hoechst Pakistan ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hoechst Pakistan's ROA % distribution charts can be found below:
* The bar in red indicates where Hoechst Pakistan'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 four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Hoechst Pakistan (KAR:HPL) has a ROA % of 19.15% 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 Hoechst Pakistan and its competitors. This is 106% above median its historical median of 9.30. Over the past decade, Hoechst Pakistan's ROA % has ranged from 1.54 to 21.36. According to the industry distribution chart, Hoechst Pakistan ranks #33 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 3.3%.
Is Hoechst Pakistan's ROA % too high?
Hoechst Pakistan's current ROA % of 19.15% is 106% above median its 10-year median of 9.30. Over the past 10 years, this metric has ranged from a low of 1.54 to a high of 21.36. The Drug Manufacturers industry median ROA % is 2.69. Hoechst Pakistan's value of 19.15% is 613.2% above this industry median. Based on the distribution chart, Hoechst Pakistan ranks #33 out of 1006 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Hoechst Pakistan has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hoechst Pakistan's ROA % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Hoechst Pakistan ranks #33 out of 1006 companies for ROA %. This places Hoechst Pakistan in the top 3% of its industry — outperforming the majority of peers. The industry median ROA % is 2.69. Hoechst Pakistan's value of 19.15% is 613.2% above this benchmark. Historically, Hoechst Pakistan's own ROA % has ranged from 1.54 to 21.36 over the past decade. While the company's 10-year median is 9.30 vs. the industry median of 2.69, Hoechst Pakistan 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.69, based on 1,006 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. Hoechst Pakistan's current ROA % of 19.15% is 613.2% 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 Hoechst Pakistan and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoechst Pakistan's current ROA % is 19.15%, which is 106% above median its own 10-year median of 9.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoechst Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Hoechst Pakistan (KAR:HPL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨3,253.76, compared to a current price of ₨4,015.00 — trading 23.4% above its estimated fair value. The current ROA % is 19.15%, which is 106% above median its 10-year median of 9.30 and 613.2% above the Drug Manufacturers industry median of 2.69. Hoechst Pakistan's overall GF Score™ is 86/100 with 1 warning sign 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 Hoechst Pakistan (KAR:HPL), the current ROA % is 19.15% 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 Hoechst Pakistan (KAR:HPL) Overvalued in 2026?
Based on GuruFocus' analysis, Hoechst Pakistan stock appears to be overvalued.
The current stock price of ₨4,015.00 is trading 23.4% above its estimated GF Value™ of ₨3,253.76.
GuruFocus considers Hoechst Pakistan to be Modestly Overvalued.
Key valuation signals for KAR:HPL:
ROA %: 19.15% (106% above median its 10-year median of 9.30)
GF Value™: ₨3,253.76 vs. price of ₨4,015.00 (23.4% above fair value)
Industry Position: 613.2% above the Drug Manufacturers median (#33 of 1006)
No single metric tells the full story. See the KAR:HPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hoechst Pakistan Ltd is a healthcare company of Pakistan, focused on patient needs and engaged in the manufacturing, promotion, and sale of pharmaceutical and vaccines. The company engages in the manufacturing, selling and trading of pharmaceutical and related products.
86GF Score
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