Luckin CoffeeLTS:0A6U 83 ROA % is 6.58% as of Mar. 2026, which is 39% above its 10-year median of 4.75. GuruFocus rates LTS:0A6U with a GF Score™ of 83/100 and a GF Value™ of $20.29 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 362 Restaurants companies, Luckin Coffee ranks better than 91.71% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Luckin Coffee's annualizedNet Income for the quarter that ended in Mar. 2026 was $294 Mil.
Luckin Coffee's average Total Assets over the quarter that ended in Mar. 2026 was $4,465 Mil. Therefore, Luckin Coffee's annualized ROA % for the quarter that ended in Mar. 2026 was 6.58%.
The historical rank and industry rank for Luckin Coffee's ROA % or its related term are showing as below:
LTS:0A6U'
s ROA % Range Over the Past 10 Years
Min: -84.4 Med: 4.75 Max: 19.6
Current: 12.44
During the past 9 years, Luckin Coffee's highest ROA % was 19.60%. The lowest was -84.40%. And the median was 4.75%.
LTS:0A6U's ROA % is ranked better than 91.71% of 362
companies
in the Restaurants industry
Industry Median: 2.235
vs LTS:0A6U: 12.44
Luckin Coffee (LTS:0A6U) 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.
Luckin Coffee ROA % Related Terms
Luckin Coffee ROA % Historical Data
* Premium members only.
The historical data trend for Luckin Coffee'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 Restaurants subindustry, Luckin Coffee'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.
Luckin Coffee ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Luckin Coffee's ROA % distribution charts can be found below:
* The bar in red indicates where Luckin Coffee'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.
Luckin Coffee (LTS:0A6U) has a ROA % of 6.58% 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 Luckin Coffee and its competitors. This is 39% above median its historical median of 4.75. According to the industry distribution chart, Luckin Coffee ranks #30 out of 362 companies in the Restaurants industry, placing it in the top 8.3%.
Is Luckin Coffee's ROA % too high?
Luckin Coffee's current ROA % of 6.58% is 39% above median its 10-year median of 4.75. The Restaurants industry median ROA % is 2.24. Luckin Coffee's value of 6.58% is 194.4% above this industry median. Based on the distribution chart, Luckin Coffee ranks #30 out of 362 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Luckin Coffee has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luckin Coffee's ROA % compare to EAT and CAVA?
According to the Restaurants industry distribution chart, Luckin Coffee ranks #30 out of 362 companies for ROA %. This places Luckin Coffee in the top 8% of its industry — outperforming the majority of peers. The industry median ROA % is 2.24. Luckin Coffee's value of 6.58% is 194.4% above this benchmark. While the company's 10-year median is 4.75 vs. the industry median of 2.24, Luckin Coffee 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 Restaurants company?
The median ROA % among Restaurants companies is 2.24, based on 362 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. Luckin Coffee's current ROA % of 6.58% is 194.4% 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 Luckin Coffee and its competitors. For the Restaurants industry, the median ROA % is 2.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luckin Coffee's current ROA % is 6.58%, which is 39% above median its own 10-year median of 4.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luckin Coffee stock overvalued right now?
Based on GuruFocus' analysis, Luckin Coffee (LTS:0A6U) is currently considered Significantly Undervalued. The stock's GF Value™ is $20.29, compared to a current price of $12.54 — trading 38.2% below its estimated fair value. The current ROA % is 6.58%, which is 39% above median its 10-year median of 4.75 and 194.4% above the Restaurants industry median of 2.24. Luckin Coffee's overall GF Score™ is 83/100 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 Luckin Coffee (LTS:0A6U), the current ROA % is 6.58% 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 Luckin Coffee (LTS:0A6U) Overvalued in 2026?
Based on GuruFocus' analysis, Luckin Coffee stock appears to be undervalued.
The current stock price of $12.54 is trading 38.2% below its estimated GF Value™ of $20.29.
GuruFocus considers Luckin Coffee to be Significantly Undervalued.
Key valuation signals for LTS:0A6U:
ROA %: 6.58% (39% above median its 10-year median of 4.75)
GF Value™: $20.29 vs. price of $12.54 (38.2% below fair value)
Industry Position: 194.4% above the Restaurants median (#30 of 362)
No single metric tells the full story. See the LTS:0A6U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luckin Coffee Inc operates a coffee network in China, providing retail services for freshly brewed drinks and pre-made food and beverage items. Its technology-driven model is built on mobile apps and a store network, offering a cashier-less purchase experience with features such as store selection, advance ordering, multiple payment options, and real-time order tracking. The company mainly operates self-operated pick-up stores in high-demand locations, enabling rapid and cost-efficient expansion, and also uses partnership and franchise models. It offers multiple products, including coffee, tea drinks, snacks, and light meals, with recipes tailored to local preferences, supported by sourcing and proprietary technology for operations and supply chain management.
83GF Score
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