Singapore Technologies EngineeringSGGKY 69 ROA % is 0.75% as of Dec. 2025, which is 86% below its 10-year median of 5.47. GuruFocus rates SGGKY with a GF Score™ of 69/100 and a GF Value™ of $42.53 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 356 Aerospace & Defense companies, Singapore Technologies Engineering ranks better than 52.81% on this metric.
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.
Singapore Technologies Engineering ROA % Related Terms
Singapore Technologies Engineering 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 Aerospace & Defense subindustry, Singapore Technologies Engineering'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.
Singapore Technologies Engineering ROA % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Singapore Technologies Engineering's ROA % distribution charts can be found below:
* The bar in red indicates where Singapore Technologies Engineering'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.
Singapore Technologies Engineering (SGGKY) has a ROA % of 0.75% 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 Singapore Technologies Engineering and its competitors. This is 86% below median its historical median of 5.47. Over the past decade, Singapore Technologies Engineering's ROA % has ranged from 2.87 to 6.76. According to the industry distribution chart, Singapore Technologies Engineering ranks #168 out of 356 companies in the Aerospace & Defense industry, placing it in the top 47.2%.
Is Singapore Technologies Engineering's ROA % too high?
Singapore Technologies Engineering's current ROA % of 0.75% is 86% below median its 10-year median of 5.47. Over the past 10 years, this metric has ranged from a low of 2.87 to a high of 6.76. The Aerospace & Defense industry median ROA % is 2.48. Singapore Technologies Engineering's value of 0.75% is 69.8% below this industry median. Based on the distribution chart, Singapore Technologies Engineering ranks #168 out of 356 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Singapore Technologies Engineering has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Singapore Technologies Engineering's ROA % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Singapore Technologies Engineering ranks #168 out of 356 companies for ROA %. This puts Singapore Technologies Engineering in the upper half of its industry. The industry median ROA % is 2.48. Singapore Technologies Engineering's value of 0.75% is 69.8% below this benchmark. Historically, Singapore Technologies Engineering's own ROA % has ranged from 2.87 to 6.76 over the past decade. While the company's 10-year median is 5.47 vs. the industry median of 2.48, Singapore Technologies Engineering has consistently been below 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 an Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.48, based on 356 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. Singapore Technologies Engineering's current ROA % of 0.75% is 69.8% below 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 Singapore Technologies Engineering and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Singapore Technologies Engineering's current ROA % is 0.75%, which is 86% below median its own 10-year median of 5.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Singapore Technologies Engineering stock overvalued right now?
Based on GuruFocus' analysis, Singapore Technologies Engineering (SGGKY) is currently considered Significantly Overvalued. The stock's GF Value™ is $42.53, compared to a current price of $85.00 — trading 99.9% above its estimated fair value. The current ROA % is 0.75%, which is 86% below median its 10-year median of 5.47 and 69.8% below the Aerospace & Defense industry median of 2.48. Singapore Technologies Engineering's overall GF Score™ is 69/100 with 11 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 Singapore Technologies Engineering (SGGKY), the current ROA % is 0.75% 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 Singapore Technologies Engineering (SGGKY) Overvalued in 2026?
Based on GuruFocus' analysis, Singapore Technologies Engineering stock appears to be overvalued.
The current stock price of $85.00 is trading 99.9% above its estimated GF Value™ of $42.53.
GuruFocus considers Singapore Technologies Engineering to be Significantly Overvalued.
Key valuation signals for SGGKY:
ROA %: 0.75% (86% below median its 10-year median of 5.47)
GF Value™: $42.53 vs. price of $85.00 (99.9% above fair value)
Industry Position: 69.8% below the Aerospace & Defense median (#168 of 356)
No single metric tells the full story. See the SGGKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Singapore Technologies Engineering Business Description
ST Engineering is a Singaporean government-linked commercial and defense engineering group. Its key businesses include aircraft maintenance, repair and overhaul services, in which it is the world's largest independent third-party provider. The company's fastest-growing activities involve applications to defense and smart city solutions where it provides tolling solutions, traffic control systems, command and control dashboards, cybersecurity tools, and other related components. Around two thirds of the company's revenue comes from commercial clients while the remainder is defense.
69GF Score
Get the complete analysis for SGGKY
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SGGKY has been successfully added to your 
