ADX:RAKBANK's ROA % is ranked better than 94.51% of 1530
companies
in the Banks industry
Industry Median: 0.98
vs ADX:RAKBANK: 2.92
National Bank of Ras Al-Khaimah PSC (ADX:RAKBANK) 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.
National Bank of Ras Al-Khaimah PSC ROA % Related Terms
National Bank of Ras Al-Khaimah PSC 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.
National Bank of Ras Al-Khaimah PSC ROA % Competitor Comparison
For the Banks - Regional subindustry, National Bank of Ras Al-Khaimah PSC'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.
National Bank of Ras Al-Khaimah PSC ROA % vs Banks 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.
National Bank of Ras Al-Khaimah PSC (ADX:RAKBANK) has a ROA % of 3.78% 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 National Bank of Ras Al-Khaimah PSC and its competitors. This is 104% above median its historical median of 1.85. Over the past decade, National Bank of Ras Al-Khaimah PSC's ROA % has ranged from 0.92 to 2.92. According to the industry distribution chart, National Bank of Ras Al-Khaimah PSC ranks #84 out of 1530 companies in the Banks industry, placing it in the top 5.5%.
Is National Bank of Ras Al-Khaimah PSC's ROA % too high?
National Bank of Ras Al-Khaimah PSC's current ROA % of 3.78% is 104% above median its 10-year median of 1.85. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 2.92. The Banks industry median ROA % is 0.98. National Bank of Ras Al-Khaimah PSC's value of 3.78% is 285.7% above this industry median. Based on the distribution chart, National Bank of Ras Al-Khaimah PSC ranks #84 out of 1530 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, National Bank of Ras Al-Khaimah PSC has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does National Bank of Ras Al-Khaimah PSC's ROA % compare to competitors?
According to the Banks industry distribution chart, National Bank of Ras Al-Khaimah PSC ranks #84 out of 1530 companies for ROA %. This places National Bank of Ras Al-Khaimah PSC in the top 6% of its industry — outperforming the majority of peers. The industry median ROA % is 0.98. National Bank of Ras Al-Khaimah PSC's value of 3.78% is 285.7% above this benchmark. Historically, National Bank of Ras Al-Khaimah PSC's own ROA % has ranged from 0.92 to 2.92 over the past decade. While the company's 10-year median is 1.85 vs. the industry median of 0.98, National Bank of Ras Al-Khaimah PSC 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 Banks company?
The median ROA % among Banks companies is 0.98, based on 1,530 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. National Bank of Ras Al-Khaimah PSC's current ROA % of 3.78% is 285.7% 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 National Bank of Ras Al-Khaimah PSC and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Bank of Ras Al-Khaimah PSC's current ROA % is 3.78%, which is 104% above median its own 10-year median of 1.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Bank of Ras Al-Khaimah PSC stock overvalued right now?
Based on GuruFocus' analysis, National Bank of Ras Al-Khaimah PSC (ADX:RAKBANK) is currently considered Modestly Overvalued. The stock's GF Value™ is د.إ7.52, compared to a current price of د.إ9.05 — trading 20.3% above its estimated fair value. The current ROA % is 3.78%, which is 104% above median its 10-year median of 1.85 and 285.7% above the Banks industry median of 0.98. National Bank of Ras Al-Khaimah PSC's overall GF Score™ is 58/100 with 4 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 National Bank of Ras Al-Khaimah PSC (ADX:RAKBANK), the current ROA % is 3.78% 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 National Bank of Ras Al-Khaimah PSC (ADX:RAKBANK) Overvalued in 2026?
Based on GuruFocus' analysis, National Bank of Ras Al-Khaimah PSC stock appears to be overvalued.
The current stock price of د.إ9.05 is trading 20.3% above its estimated GF Value™ of د.إ7.52.
GuruFocus considers National Bank of Ras Al-Khaimah PSC to be Modestly Overvalued.
Key valuation signals for ADX:RAKBANK:
ROA %: 3.78% (104% above median its 10-year median of 1.85)
GF Value™: د.إ7.52 vs. price of د.إ9.05 (20.3% above fair value)
Industry Position: 285.7% above the Banks median (#84 of 1530)
No single metric tells the full story. See the ADX:RAKBANK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Bank of Ras Al-Khaimah PSC Business Description
National Bank of Ras Al-Khaimah PSC is engaged in providing retail and commercial banking services in the UAE. The bank has operating segments, namely Retail Banking, Wholesale Banking, Business Banking, Head office & Others. It generates maximum revenue from the Wholesale banking segment, which represents transactions with corporate bodies, including government and public bodies, and comprises loans, advances, deposits, and trade finance transactions of corporate customers and financial institutions.
58GF Score
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