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Hong Leong FinanceSGX:S41 +0.40%61 ROA % is 0.41% as of Dec. 2025, which is 39% below its 10-year median of 0.67. GuruFocus rates SGX:S41 with a GF Score™ of 61/100 and a GF Value™ of S$2.25 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,528 Banks companies, Hong Leong Finance ranks worse than 81.61% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hong Leong Finance's annualizedNet Income for the quarter that ended in Dec. 2025 was S$61.0 Mil.
Hong Leong Finance's average Total Assets over the quarter that ended in Dec. 2025 was S$14,719.2 Mil. Therefore, Hong Leong Finance's annualized ROA % for the quarter that ended in Dec. 2025 was 0.41%.
The historical rank and industry rank for Hong Leong Finance's ROA % or its related term are showing as below:
SGX:S41'
s ROA % Range Over the Past 10 Years
Min: 0.41 Med: 0.67 Max: 0.96
Current: 0.43
During the past 13 years, Hong Leong Finance's highest ROA % was 0.96%. The lowest was 0.41%. And the median was 0.67%.
SGX:S41's ROA % is ranked worse than 81.61% of 1528
companies
in the Banks industry
Industry Median: 1
vs SGX:S41: 0.43
Hong Leong Finance (SGX:S41) 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.
Hong Leong Finance ROA % Related Terms
Hong Leong Finance ROA % Historical Data
* Premium members only.
The historical data trend for Hong Leong Finance'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 Banks - Regional subindustry, Hong Leong Finance'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.
Hong Leong Finance ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Hong Leong Finance's ROA % distribution charts can be found below:
* The bar in red indicates where Hong Leong Finance'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.
Hong Leong Finance (SGX:S41) has a ROA % of 0.41% 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 Hong Leong Finance and its competitors. This is 39% below median its historical median of 0.67. Over the past decade, Hong Leong Finance's ROA % has ranged from 0.41 to 0.96. According to the industry distribution chart, Hong Leong Finance ranks #1247 out of 1528 companies in the Banks industry, placing it in the top 81.6%.
Is Hong Leong Finance's ROA % too high?
Hong Leong Finance's current ROA % of 0.41% is 39% below median its 10-year median of 0.67. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 0.96. The Banks industry median ROA % is 1.00. Hong Leong Finance's value of 0.41% is 59% below this industry median. Based on the distribution chart, Hong Leong Finance ranks #1247 out of 1528 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Hong Leong Finance has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Finance's ROA % compare to PNC and USB?
According to the Banks industry distribution chart, Hong Leong Finance ranks #1247 out of 1528 companies for ROA %. This places Hong Leong Finance in the lower half of its industry. The industry median ROA % is 1.00. Hong Leong Finance's value of 0.41% is 59% below this benchmark. Historically, Hong Leong Finance's own ROA % has ranged from 0.41 to 0.96 over the past decade. While the company's 10-year median is 0.67 vs. the industry median of 1.00, Hong Leong Finance 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 a Banks company?
The median ROA % among Banks companies is 1.00, based on 1,528 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. Hong Leong Finance's current ROA % of 0.41% is 59% 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 Hong Leong Finance and its competitors. For the Banks industry, the median ROA % is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Finance's current ROA % is 0.41%, which is 39% below median its own 10-year median of 0.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Finance stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Finance (SGX:S41) is currently considered Modestly Overvalued. The stock's GF Value™ is S$2.25, compared to a current price of S$2.51 — trading 11.6% above its estimated fair value. The current ROA % is 0.41%, which is 39% below median its 10-year median of 0.67 and 59% below the Banks industry median of 1.00. Hong Leong Finance's overall GF Score™ is 61/100 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 Hong Leong Finance (SGX:S41), the current ROA % is 0.41% 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 Hong Leong Finance (SGX:S41) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Finance stock appears to be overvalued.
The current stock price of S$2.51 is trading 11.6% above its estimated GF Value™ of S$2.25.
GuruFocus considers Hong Leong Finance to be Modestly Overvalued.
Key valuation signals for SGX:S41:
ROA %: 0.41% (39% below median its 10-year median of 0.67)
GF Value™: S$2.25 vs. price of S$2.51 (11.6% above fair value)
Industry Position: 59% below the Banks median (#1247 of 1528)
No single metric tells the full story. See the SGX:S41 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Finance Ltd is a financial institution. The activities of the company are related to financing business and the provision of corporate advisory services. The principal activities of the subsidiaries are the provision of nominee services. It operates exclusively in Singapore. The company's service offerings include SME loans, Personal loans, Deposites and savings, and corporate finance.
61GF Score
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