SIHBY's ROA % is ranked better than 56.34% of 1782
companies
in the Construction industry
Industry Median: 2.79
vs SIHBY: 3.64
Shenzhen Investment Holdings Bay Area Development Co (OTCPK:SIHBY) 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.
Shenzhen Investment Holdings Bay Area Development Co ROA % Related Terms
Shenzhen Investment Holdings Bay Area Development Co 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.
Shenzhen Investment Holdings Bay Area Development Co ROA % Chart
Shenzhen Investment Holdings Bay Area Development Co Annual Data
* 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.
Shenzhen Investment Holdings Bay Area Development Co ROA % vs Construction Industry
* 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.
Shenzhen Investment Holdings Bay Area Development Co (SIHBY) has a ROA % of 3.88% 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 Shenzhen Investment Holdings Bay Area Development Co and its competitors. This is 34% below median its historical median of 5.86. Over the past decade, Shenzhen Investment Holdings Bay Area Development Co's ROA % has ranged from 1.96 to 11.98. According to the industry distribution chart, Shenzhen Investment Holdings Bay Area Development Co ranks #778 out of 1782 companies in the Construction industry, placing it in the top 43.7%.
Is Shenzhen Investment Holdings Bay Area Development Co's ROA % too high?
Shenzhen Investment Holdings Bay Area Development Co's current ROA % of 3.88% is 34% below median its 10-year median of 5.86. Over the past 10 years, this metric has ranged from a low of 1.96 to a high of 11.98. The Construction industry median ROA % is 2.79. Shenzhen Investment Holdings Bay Area Development Co's value of 3.88% is 39.1% above this industry median. Based on the distribution chart, Shenzhen Investment Holdings Bay Area Development Co ranks #778 out of 1782 companies in the Construction industry, which is above the industry midpoint. Overall, Shenzhen Investment Holdings Bay Area Development Co has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Investment Holdings Bay Area Development Co's ROA % compare to competitors?
According to the Construction industry distribution chart, Shenzhen Investment Holdings Bay Area Development Co ranks #778 out of 1782 companies for ROA %. This puts Shenzhen Investment Holdings Bay Area Development Co in the upper half of its industry. The industry median ROA % is 2.79. Shenzhen Investment Holdings Bay Area Development Co's value of 3.88% is 39.1% above this benchmark. Historically, Shenzhen Investment Holdings Bay Area Development Co's own ROA % has ranged from 1.96 to 11.98 over the past decade. While the company's 10-year median is 5.86 vs. the industry median of 2.79, Shenzhen Investment Holdings Bay Area Development Co 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 Construction company?
The median ROA % among Construction companies is 2.79, based on 1,782 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. Shenzhen Investment Holdings Bay Area Development Co's current ROA % of 3.88% is 39.1% 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 Shenzhen Investment Holdings Bay Area Development Co and its competitors. For the Construction industry, the median ROA % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Investment Holdings Bay Area Development Co's current ROA % is 3.88%, which is 34% below median its own 10-year median of 5.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Investment Holdings Bay Area Development Co stock overvalued right now?
Shenzhen Investment Holdings Bay Area Development Co (SIHBY) has a current ROA % of 3.88%. The stock's GF Value™ is $2.17, compared to a current price of $2.40 — trading 10.6% above its estimated fair value. The current ROA % is 3.88%, which is 34% below median its 10-year median of 5.86 and 39.1% above the Construction industry median of 2.79. Shenzhen Investment Holdings Bay Area Development Co's overall GF Score™ is 59/100 with 9 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 Shenzhen Investment Holdings Bay Area Development Co (SIHBY), the current ROA % is 3.88% 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 Shenzhen Investment Holdings Bay Area Development Co (SIHBY) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Investment Holdings Bay Area Development Co stock appears to be overvalued.
The current stock price of $2.40 is trading 10.6% above its estimated GF Value™ of $2.17.
Key valuation signals for SIHBY:
ROA %: 3.88% (34% below median its 10-year median of 5.86)
GF Value™: $2.17 vs. price of $2.40 (10.6% above fair value)
Industry Position: 39.1% above the Construction median (#778 of 1782)
No single metric tells the full story. See the SIHBY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Investment Holdings Bay Area Development Co Business Description
Shenzhen Investment Holdings Bay Area Development Co Ltd is an investment holding company that is engaged in expressway business and adopts development strategies focusing on the infrastructure and correlated business, as well as land development and utilisation along the GS Superhighway within the Guangdong-Hong Kong-Macao Greater Bay Area in China. The company manages its business in four segments, namely the Guangzhou-Shenzhen Superhighway, the Guangzhou-Zhuhai West Superhighway, the Coastal Expressway, and the Xintang Interchange. It generates the majority of the revenue from the Guangzhou-Shenzhen Superhighway segment.
59GF Score
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