XNEP:HIDCL's ROA % is ranked worse than 60.8% of 1635
companies
in the Asset Management industry
Industry Median: 4.02
vs XNEP:HIDCL: 2.06
Hydroelectricity Investment and Development Company (XNEP:HIDCL) 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 (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 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.
Hydroelectricity Investment and Development Company ROA % Related Terms
Hydroelectricity Investment and Development Company 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.
Hydroelectricity Investment and Development Company ROA % Chart
Hydroelectricity Investment and Development Company 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.
Hydroelectricity Investment and Development Company ROA % vs Asset Management 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 (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Hydroelectricity Investment and Development Company (XNEP:HIDCL) has a ROA % of 7.59% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hydroelectricity Investment and Development Company and its competitors. This is 57% above median its historical median of 4.83. Over the past decade, Hydroelectricity Investment and Development Company's ROA % has ranged from 2.06 to 5.96. According to the industry distribution chart, Hydroelectricity Investment and Development Company ranks #994 out of 1635 companies in the Asset Management industry, placing it in the top 60.8%.
Is Hydroelectricity Investment and Development Company's ROA % too high?
Hydroelectricity Investment and Development Company's current ROA % of 7.59% is 57% above median its 10-year median of 4.83. Over the past 10 years, this metric has ranged from a low of 2.06 to a high of 5.96. The Asset Management industry median ROA % is 4.02. Hydroelectricity Investment and Development Company's value of 7.59% is 88.8% above this industry median. Based on the distribution chart, Hydroelectricity Investment and Development Company ranks #994 out of 1635 companies in the Asset Management industry, which is below the industry midpoint. Overall, Hydroelectricity Investment and Development Company has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hydroelectricity Investment and Development Company's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Hydroelectricity Investment and Development Company ranks #994 out of 1635 companies for ROA %. This places Hydroelectricity Investment and Development Company in the lower half of its industry. The industry median ROA % is 4.02. Hydroelectricity Investment and Development Company's value of 7.59% is 88.8% above this benchmark. Historically, Hydroelectricity Investment and Development Company's own ROA % has ranged from 2.06 to 5.96 over the past decade. While the company's 10-year median is 4.83 vs. the industry median of 4.02, Hydroelectricity Investment and Development Company 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 an Asset Management company?
The median ROA % among Asset Management companies is 4.02, based on 1,635 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. Hydroelectricity Investment and Development Company's current ROA % of 7.59% is 88.8% 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 Hydroelectricity Investment and Development Company and its competitors. For the Asset Management industry, the median ROA % is 4.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hydroelectricity Investment and Development Company's current ROA % is 7.59%, which is 57% above median its own 10-year median of 4.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hydroelectricity Investment and Development Company stock overvalued right now?
Based on GuruFocus' analysis, Hydroelectricity Investment and Development Company (XNEP:HIDCL) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR296.90, compared to a current price of NPR253.00 — trading 14.8% below its estimated fair value. The current ROA % is 7.59%, which is 57% above median its 10-year median of 4.83 and 88.8% above the Asset Management industry median of 4.02. Hydroelectricity Investment and Development Company's overall GF Score™ is 81/100 with 1 warning sign 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 Hydroelectricity Investment and Development Company (XNEP:HIDCL), the current ROA % is 7.59% as of Apr. 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 Hydroelectricity Investment and Development Company (XNEP:HIDCL) Overvalued in 2026?
Based on GuruFocus' analysis, Hydroelectricity Investment and Development Company stock appears to be undervalued.
The current stock price of NPR253.00 is trading 14.8% below its estimated GF Value™ of NPR296.90.
GuruFocus considers Hydroelectricity Investment and Development Company to be Modestly Undervalued.
Key valuation signals for XNEP:HIDCL:
ROA %: 7.59% (57% above median its 10-year median of 4.83)
GF Value™: NPR296.90 vs. price of NPR253.00 (14.8% below fair value)
Industry Position: 88.8% above the Asset Management median (#994 of 1635)
No single metric tells the full story. See the XNEP:HIDCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hydroelectricity Investment and Development Company Business Description
Hydroelectricity Investment and Development Company Ltd mobilizes funds from domestic and international resource base to cater to the needs of investments in the middle to mega hydroelectricity generation, transmission, and distribution projects. The company operates and generates revenue within Nepal.
81GF Score
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