Power Assets HoldingsHGKGF 67 ROE % is 7.14% as of Dec. 2025, which is 1% above its 10-year median of 7.09. GuruFocus rates HGKGF with a GF Score™ of 67/100 and a GF Value™ of $4.25 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 433 Utilities - Independent Power Producers companies, Power Assets Holdings ranks better than 62.82% on this metric.
Power Assets Holdings (OTCPK:HGKGF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 Utilities - Independent Power Producers subindustry, Power Assets Holdings's ROE %, along with its competitors' market caps and ROE % 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.
Power Assets Holdings ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Power Assets Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Power Assets Holdings's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Power Assets Holdings (HGKGF) has a ROE % of 7.14% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Power Assets Holdings and its competitors. This is near median its historical median of 7.09. Over the past decade, Power Assets Holdings' ROE % has ranged from 5.30 to 8.53. According to the industry distribution chart, Power Assets Holdings ranks #161 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 37.2%.
Is Power Assets Holdings' ROE % too high?
Power Assets Holdings' current ROE % of 7.14% is near median its 10-year median of 7.09. Over the past 10 years, this metric has ranged from a low of 5.30 to a high of 8.53. The Utilities - Independent Power Producers industry median ROE % is 3.79. Power Assets Holdings' value of 7.14% is 88.4% above this industry median. Based on the distribution chart, Power Assets Holdings ranks #161 out of 433 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Power Assets Holdings has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Power Assets Holdings' ROE % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Power Assets Holdings ranks #161 out of 433 companies for ROE %. This puts Power Assets Holdings in the upper half of its industry. The industry median ROE % is 3.79. Power Assets Holdings' value of 7.14% is 88.4% above this benchmark. Historically, Power Assets Holdings' own ROE % has ranged from 5.30 to 8.53 over the past decade. While the company's 10-year median is 7.09 vs. the industry median of 3.79, Power Assets Holdings 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 ROE % for an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.79, based on 433 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Power Assets Holdings's current ROE % of 7.14% is 88.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Power Assets Holdings and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Power Assets Holdings's current ROE % is 7.14%, which is near median its own 10-year median of 7.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Assets Holdings stock overvalued right now?
Based on GuruFocus' analysis, Power Assets Holdings (HGKGF) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.25, compared to a current price of $8.57 — trading 101.6% above its estimated fair value. The current ROE % is 7.14%, which is near median its 10-year median of 7.09 and 88.4% above the Utilities - Independent Power Producers industry median of 3.79. Power Assets Holdings' overall GF Score™ is 67/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Power Assets Holdings (HGKGF), the current ROE % is 7.14% 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 Power Assets Holdings (HGKGF) Overvalued in 2026?
Based on GuruFocus' analysis, Power Assets Holdings stock appears to be overvalued.
The current stock price of $8.57 is trading 101.6% above its estimated GF Value™ of $4.25.
GuruFocus considers Power Assets Holdings to be Significantly Overvalued.
Key valuation signals for HGKGF:
ROE %: 7.14% (near median its 10-year median of 7.09)
GF Value™: $4.25 vs. price of $8.57 (101.6% above fair value)
Industry Position: 88.4% above the Utilities - Independent Power Producers median (#161 of 433)
No single metric tells the full story. See the HGKGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Power Assets Holdings is an investment holding company with a focus on regulated utility assets. The firm owns a portfolio of regulated electricity and gas assets and similarly stable utilities in Hong Kong, the UK, Australia, Canada, the Netherlands, Thailand, and New Zealand. Profit from its regulated assets contributes around 80% of total income, with earnings from its UK and Australian assets totaling around 65% of group profit. The firm is part of CK Hutchison Holdings, a Hong Kong-based multinational conglomerate, and is currently 36% owned by CKI Holdings.
67GF Score
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