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Hong Leong Industries BhdXKLS:3301 +0.98%82 ROA % is 15.81% as of Mar. 2026, which is 20% above its 10-year median of 13.15. GuruFocus rates XKLS:3301 with a GF Score™ of 82/100 and a GF Value™ of RM13.88 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,330 Vehicles & Parts companies, Hong Leong Industries Bhd ranks better than 96.24% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hong Leong Industries Bhd's annualizedNet Income for the quarter that ended in Mar. 2026 was RM553 Mil.
Hong Leong Industries Bhd's average Total Assets over the quarter that ended in Mar. 2026 was RM3,501 Mil. Therefore, Hong Leong Industries Bhd's annualized ROA % for the quarter that ended in Mar. 2026 was 15.81%.
The historical rank and industry rank for Hong Leong Industries Bhd's ROA % or its related term are showing as below:
XKLS:3301'
s ROA % Range Over the Past 10 Years
Min: 5.55 Med: 13.15 Max: 17.38
Current: 16.15
During the past 13 years, Hong Leong Industries Bhd's highest ROA % was 17.38%. The lowest was 5.55%. And the median was 13.15%.
XKLS:3301's ROA % is ranked better than 96.24% of 1330
companies
in the Vehicles & Parts industry
Industry Median: 2.975
vs XKLS:3301: 16.15
Hong Leong Industries Bhd (XKLS:3301) 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.
* 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 Auto Manufacturers subindustry, Hong Leong Industries Bhd'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 Industries Bhd ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hong Leong Industries Bhd's ROA % distribution charts can be found below:
* The bar in red indicates where Hong Leong Industries Bhd'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.
Hong Leong Industries Bhd (XKLS:3301) has a ROA % of 15.81% 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 Hong Leong Industries Bhd and its competitors. This is 20% above median its historical median of 13.15. Over the past decade, Hong Leong Industries Bhd's ROA % has ranged from 5.55 to 17.38. According to the industry distribution chart, Hong Leong Industries Bhd ranks #50 out of 1330 companies in the Vehicles & Parts industry, placing it in the top 3.8%.
Is Hong Leong Industries Bhd's ROA % too high?
Hong Leong Industries Bhd's current ROA % of 15.81% is 20% above median its 10-year median of 13.15. Over the past 10 years, this metric has ranged from a low of 5.55 to a high of 17.38. The Vehicles & Parts industry median ROA % is 2.98. Hong Leong Industries Bhd's value of 15.81% is 431.4% above this industry median. Based on the distribution chart, Hong Leong Industries Bhd ranks #50 out of 1330 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hong Leong Industries Bhd has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Industries Bhd's ROA % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Hong Leong Industries Bhd ranks #50 out of 1330 companies for ROA %. This places Hong Leong Industries Bhd in the top 4% of its industry — outperforming the majority of peers. The industry median ROA % is 2.98. Hong Leong Industries Bhd's value of 15.81% is 431.4% above this benchmark. Historically, Hong Leong Industries Bhd's own ROA % has ranged from 5.55 to 17.38 over the past decade. While the company's 10-year median is 13.15 vs. the industry median of 2.98, Hong Leong Industries Bhd 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 Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.98, based on 1,330 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 Industries Bhd's current ROA % of 15.81% is 431.4% 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 Hong Leong Industries Bhd and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Industries Bhd's current ROA % is 15.81%, which is 20% above median its own 10-year median of 13.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Industries Bhd (XKLS:3301) is currently considered Significantly Overvalued. The stock's GF Value™ is RM13.88, compared to a current price of RM18.60 — trading 34% above its estimated fair value. The current ROA % is 15.81%, which is 20% above median its 10-year median of 13.15 and 431.4% above the Vehicles & Parts industry median of 2.98. Hong Leong Industries Bhd's overall GF Score™ is 82/100 with 7 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 Industries Bhd (XKLS:3301), the current ROA % is 15.81% 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 Hong Leong Industries Bhd (XKLS:3301) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Industries Bhd stock appears to be overvalued.
The current stock price of RM18.60 is trading 34% above its estimated GF Value™ of RM13.88.
GuruFocus considers Hong Leong Industries Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:3301:
ROA %: 15.81% (20% above median its 10-year median of 13.15)
GF Value™: RM13.88 vs. price of RM18.60 (34% above fair value)
Industry Position: 431.4% above the Vehicles & Parts median (#50 of 1330)
No single metric tells the full story. See the XKLS:3301 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Industries Bhd is a Malaysia-based investment holding company. Its only operating segment is Consumer products. Consumer products segment manufacture and sale of consumer products comprises motorcycles, spare parts and ceramic tiles. Geographically, it derives a majority of its revenue from Malaysia.
82GF Score
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