Hong Leong Asia (FRA:HOM) ROCE %: 10.11% (As of Dec. 2025)


FRA:HOM Hong Leong Asia Ltd FRA:HOM
56 GF Score
Price €1.83
GF Value €0.66
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Hong Leong Asia ROCE %?

Hong Leong Asia FRA:HOM -3.68% 56 ROCE % is 10.11% as of Dec. 2025. GuruFocus rates FRA:HOM with a GF Score™ of 56/100 and a GF Value™ of €0.66 (Significantly Overvalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hong Leong Asia's annualized ROCE % for the quarter that ended in Dec. 2025 was 10.11%.

Hong Leong Asia  (FRA:HOM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hong Leong Asia ROCE % Related Terms

Hong Leong Asia ROCE % Historical Data

* Premium members only.

The historical data trend for Hong Leong Asia's ROCE % 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.

Hong Leong Asia ROCE % Chart

Hong Leong Asia Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.67 5.62 7.14 7.82 10.00

Hong Leong Asia Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.37 9.27 6.12 10.95 10.11
FRA:HOM
56GF Score
Hong Leong Asia Ltd FRA:HOM
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hong Leong Asia ROCE % Calculation

Hong Leong Asia's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=205.931/( ( (4107.904 - 2018.974) + (4427.558 - 2399.925) )/ 2 )
=205.931/( (2088.93+2027.633)/ 2 )
=205.931/2058.2815
=10.00 %

Hong Leong Asia's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=199.154/( ( (4389.423 - 2476.108) + (4427.558 - 2399.925) )/ 2 )
=199.154/( ( 1913.315 + 2027.633 )/ 2 )
=199.154/1970.474
=10.11 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 10.11% mean?
Hong Leong Asia (FRA:HOM) has a ROCE % of 10.11% as of Dec. 2025.
Is Hong Leong Asia's ROCE % too high?
Hong Leong Asia's current ROCE % is 10.11%. The Vehicles & Parts industry median ROCE % is 7.94. Hong Leong Asia's value of 10.11% is 27.3% above this industry median. Overall, Hong Leong Asia has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Asia's ROCE % compare to TSLA and GM?
Hong Leong Asia's ROCE % of 10.11% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 7.94. Hong Leong Asia's value of 10.11% is 27.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 7.94, based on 1,319 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hong Leong Asia's current ROCE % of 10.11% is 27.3% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median ROCE % is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Asia's current ROCE % is 10.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Asia stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Asia (FRA:HOM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.66, compared to a current price of €1.83 — trading 177.3% above its estimated fair value. The current ROCE % is 10.11% and 27.3% above the Vehicles & Parts industry median of 7.94. Hong Leong Asia's overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Hong Leong Asia (FRA:HOM), the current ROCE % is 10.11% 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 Asia (FRA:HOM) Overvalued in 2026?

Based on GuruFocus' analysis, Hong Leong Asia stock appears to be overvalued. The current stock price of €1.83 is trading 177.3% above its estimated GF Value™ of €0.66. GuruFocus considers Hong Leong Asia to be Significantly Overvalued.

Key valuation signals for FRA:HOM:

  • ROCE %: 10.11%
  • GF Value™: €0.66 vs. price of €1.83 (177.3% above fair value)
  • GF Score™: 56/100 with 3 warning signs
  • Industry Position: 27.3% above the Vehicles & Parts median

No single metric tells the full story. See the FRA:HOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hong Leong Asia Business Description

Other Exchanges H22:Singapore
Address 16 Raffles Quay, No. 26-00 Hong Leong Building, Singapore, SGP, 048581
Hong Leong Asia Ltd is the industrial manufacturing and distribution division of Hong Leong Group Singapore. It operates as the diversified industrial conglomerate in China and Southeast Asia. Its reportable segments are Powertrain solutions: engines for on-road, off-road, genset and marine applications. and Building materials: cement, precast concrete products, ready-mix concrete and quarry products. Geographically it derives key revenue from China.
56GF Score

Get the complete analysis for FRA:HOM

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€1.83
Price
€0.66
GF Value