NZSE:MCK's ROA % is ranked better than 51.11% of 859
companies
in the Travel & Leisure industry
Industry Median: 2.37
vs NZSE:MCK: 2.58
Millenniumpthorne Hotels New Zealand (NZSE:MCK) 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.
Millenniumpthorne Hotels New Zealand ROA % Related Terms
Millenniumpthorne Hotels New Zealand 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.
For the Lodging subindustry, Millenniumpthorne Hotels New Zealand'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.
Millenniumpthorne Hotels New Zealand ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Millenniumpthorne Hotels New Zealand's ROA % distribution charts can be found below:
* The bar in red indicates where Millenniumpthorne Hotels New Zealand'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.
Millenniumpthorne Hotels New Zealand (NZSE:MCK) has a ROA % of 3.42% 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 Millenniumpthorne Hotels New Zealand and its competitors. This is 30% below median its historical median of 4.91. Over the past decade, Millenniumpthorne Hotels New Zealand's ROA % has ranged from 0.32 to 6.20. According to the industry distribution chart, Millenniumpthorne Hotels New Zealand ranks #420 out of 859 companies in the Travel & Leisure industry, placing it in the top 48.9%.
Is Millenniumpthorne Hotels New Zealand's ROA % too high?
Millenniumpthorne Hotels New Zealand's current ROA % of 3.42% is 30% below median its 10-year median of 4.91. Over the past 10 years, this metric has ranged from a low of 0.32 to a high of 6.20. The Travel & Leisure industry median ROA % is 2.37. Millenniumpthorne Hotels New Zealand's value of 3.42% is 44.3% above this industry median. Based on the distribution chart, Millenniumpthorne Hotels New Zealand ranks #420 out of 859 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Millenniumpthorne Hotels New Zealand has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Millenniumpthorne Hotels New Zealand's ROA % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Millenniumpthorne Hotels New Zealand ranks #420 out of 859 companies for ROA %. This puts Millenniumpthorne Hotels New Zealand in the upper half of its industry. The industry median ROA % is 2.37. Millenniumpthorne Hotels New Zealand's value of 3.42% is 44.3% above this benchmark. Historically, Millenniumpthorne Hotels New Zealand's own ROA % has ranged from 0.32 to 6.20 over the past decade. While the company's 10-year median is 4.91 vs. the industry median of 2.37, Millenniumpthorne Hotels New Zealand 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 Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.37, based on 859 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. Millenniumpthorne Hotels New Zealand's current ROA % of 3.42% is 44.3% 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 Millenniumpthorne Hotels New Zealand and its competitors. For the Travel & Leisure industry, the median ROA % is 2.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Millenniumpthorne Hotels New Zealand's current ROA % is 3.42%, which is 30% below median its own 10-year median of 4.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Millenniumpthorne Hotels New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Millenniumpthorne Hotels New Zealand (NZSE:MCK) is currently considered Modestly Overvalued. The stock's GF Value™ is NZ$2.67, compared to a current price of NZ$3.18 — trading 19.1% above its estimated fair value. The current ROA % is 3.42%, which is 30% below median its 10-year median of 4.91 and 44.3% above the Travel & Leisure industry median of 2.37. Millenniumpthorne Hotels New Zealand's overall GF Score™ is 72/100 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 Millenniumpthorne Hotels New Zealand (NZSE:MCK), the current ROA % is 3.42% 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 Millenniumpthorne Hotels New Zealand (NZSE:MCK) Overvalued in 2026?
Based on GuruFocus' analysis, Millenniumpthorne Hotels New Zealand stock appears to be overvalued.
The current stock price of NZ$3.18 is trading 19.1% above its estimated GF Value™ of NZ$2.67.
GuruFocus considers Millenniumpthorne Hotels New Zealand to be Modestly Overvalued.
Key valuation signals for NZSE:MCK:
ROA %: 3.42% (30% below median its 10-year median of 4.91)
GF Value™: NZ$2.67 vs. price of NZ$3.18 (19.1% above fair value)
Industry Position: 44.3% above the Travel & Leisure median (#420 of 859)
No single metric tells the full story. See the NZSE:MCK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Millenniumpthorne Hotels New Zealand Business Description
Millennium & Copthorne Hotels New Zealand Ltd is engaged in the ownership and operation of hotels in New Zealand. The Group is also involved in the development and sale of residential land in New Zealand; investment properties comprising commercial warehousing and retail shops in New Zealand; and the development and sale of residential units in Australia. Its operating segments are: Hotel operations, Residential land development, Investment property, and Residential and commercial property development. Maximum revenue is generated from the Hotel operations segment, which includes income from the ownership and management of hotels. Geographically, the Group generates maximum revenue from New Zealand, and the rest from Australia.
72GF Score
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