ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. GDS Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN27,721 Mil.
GDS Holdings's average Total Assets over the quarter that ended in Mar. 2026 was MXN212,323 Mil. Therefore, GDS Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 13.06%.
The historical rank and industry rank for GDS Holdings's ROA % or its related term are showing as below:
MEX:GDSN'
s ROA % Range Over the Past 10 Years
Min: -5.68 Med: -1.95 Max: 4.58
Current: 3.67
During the past 12 years, GDS Holdings's highest ROA % was 4.58%. The lowest was -5.68%. And the median was -1.95%.
MEX:GDSN's ROA % is ranked better than 59.34% of 2885
companies
in the Software industry
Industry Median: 1.68
vs MEX:GDSN: 3.67
GDS Holdings (MEX:GDSN) 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.
GDS Holdings ROA % Related Terms
GDS Holdings ROA % Historical Data
* Premium members only.
The historical data trend for GDS Holdings'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 Information Technology Services subindustry, GDS Holdings'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.
GDS Holdings ROA % vs Software Industry
For the Software industry and Technology sector, GDS Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where GDS Holdings'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.
GDS Holdings (MEX:GDSN) has a ROA % of 13.06% 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 GDS Holdings and its competitors. According to the industry distribution chart, GDS Holdings ranks #1173 out of 2885 companies in the Software industry, placing it in the top 40.7%.
Is GDS Holdings' ROA % too high?
GDS Holdings' current ROA % is 13.06%. The Software industry median ROA % is 1.68. GDS Holdings' value of 13.06% is 677.4% above this industry median. Based on the distribution chart, GDS Holdings ranks #1173 out of 2885 companies in the Software industry, which is above the industry midpoint. Overall, GDS Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GDS Holdings' ROA % compare to INGM and PSN?
According to the Software industry distribution chart, GDS Holdings ranks #1173 out of 2885 companies for ROA %. This puts GDS Holdings in the upper half of its industry. The industry median ROA % is 1.68. GDS Holdings' value of 13.06% is 677.4% above this benchmark. 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 Software company?
The median ROA % among Software companies is 1.68, based on 2,885 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. GDS Holdings's current ROA % of 13.06% is 677.4% 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 GDS Holdings and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GDS Holdings's current ROA % is 13.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GDS Holdings stock overvalued right now?
Based on GuruFocus' analysis, GDS Holdings (MEX:GDSN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN449.22, compared to a current price of MXN618.00 — trading 37.6% above its estimated fair value. The current ROA % is 13.06% and 677.4% above the Software industry median of 1.68. GDS Holdings' overall GF Score™ is 69/100 with 5 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 GDS Holdings (MEX:GDSN), the current ROA % is 13.06% 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 GDS Holdings (MEX:GDSN) Overvalued in 2026?
Based on GuruFocus' analysis, GDS Holdings stock appears to be overvalued.
The current stock price of MXN618.00 is trading 37.6% above its estimated GF Value™ of MXN449.22.
GuruFocus considers GDS Holdings to be Significantly Overvalued.
Key valuation signals for MEX:GDSN:
ROA %: 13.06%
GF Value™: MXN449.22 vs. price of MXN618.00 (37.6% above fair value)
Industry Position: 677.4% above the Software median (#1173 of 2885)
No single metric tells the full story. See the MEX:GDSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GDS Holdings started as an IT service provider in 2001, then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates, and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. Its data centers are located predominantly in and around the Tier 1 cities in China, and it has also started expanding into Southeast Asia via the now 23% owned DayOne. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.
69GF Score
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