ALFABS AUSTRALIAASX:AAL +12.00%20 ROA % is 1.96% as of Dec. 2025, which is 70% below its 10-year median of 6.45. GuruFocus rates ASX:AAL with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 565 Conglomerates companies, ALFABS AUSTRALIA ranks better than 79.29% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. ALFABS AUSTRALIA's annualizedNet Income for the quarter that ended in Dec. 2025 was A$2.6 Mil.
ALFABS AUSTRALIA's average Total Assets over the quarter that ended in Dec. 2025 was A$134.3 Mil. Therefore, ALFABS AUSTRALIA's annualized ROA % for the quarter that ended in Dec. 2025 was 1.96%.
The historical rank and industry rank for ALFABS AUSTRALIA's ROA % or its related term are showing as below:
ASX:AAL'
s ROA % Range Over the Past 10 Years
Min: 3.07 Med: 6.45 Max: 9.83
Current: 6.06
During the past 4 years, ALFABS AUSTRALIA's highest ROA % was 9.83%. The lowest was 3.07%. And the median was 6.45%.
ASX:AAL's ROA % is ranked better than 79.29% of 565
companies
in the Conglomerates industry
Industry Median: 2.46
vs ASX:AAL: 6.06
ALFABS AUSTRALIA (ASX:AAL) 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 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.
* 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.
ALFABS AUSTRALIA ROA % Related Terms
ALFABS AUSTRALIA ROA % Historical Data
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The historical data trend for ALFABS AUSTRALIA's ROA % 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.
For the Conglomerates subindustry, ALFABS AUSTRALIA'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.
ALFABS AUSTRALIA ROA % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, ALFABS AUSTRALIA's ROA % distribution charts can be found below:
* The bar in red indicates where ALFABS AUSTRALIA'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 two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
ALFABS AUSTRALIA (ASX:AAL) has a ROA % of 1.96% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on ALFABS AUSTRALIA and its competitors. This is 70% below median its historical median of 6.45. Over the past decade, ALFABS AUSTRALIA's ROA % has ranged from 3.07 to 9.83. According to the industry distribution chart, ALFABS AUSTRALIA ranks #117 out of 565 companies in the Conglomerates industry, placing it in the top 20.7%.
Is ALFABS AUSTRALIA's ROA % too high?
ALFABS AUSTRALIA's current ROA % of 1.96% is 70% below median its 10-year median of 6.45. Over the past 10 years, this metric has ranged from a low of 3.07 to a high of 9.83. The Conglomerates industry median ROA % is 2.46. ALFABS AUSTRALIA's value of 1.96% is 20.3% below this industry median. Based on the distribution chart, ALFABS AUSTRALIA ranks #117 out of 565 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, ALFABS AUSTRALIA has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does ALFABS AUSTRALIA's ROA % compare to HON and MMM?
According to the Conglomerates industry distribution chart, ALFABS AUSTRALIA ranks #117 out of 565 companies for ROA %. This places ALFABS AUSTRALIA in the top 21% of its industry — outperforming the majority of peers. The industry median ROA % is 2.46. ALFABS AUSTRALIA's value of 1.96% is 20.3% below this benchmark. Historically, ALFABS AUSTRALIA's own ROA % has ranged from 3.07 to 9.83 over the past decade. While the company's 10-year median is 6.45 vs. the industry median of 2.46, ALFABS AUSTRALIA has consistently been below 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 Conglomerates company?
The median ROA % among Conglomerates companies is 2.46, based on 565 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. ALFABS AUSTRALIA's current ROA % of 1.96% is 20.3% below 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 ALFABS AUSTRALIA and its competitors. For the Conglomerates industry, the median ROA % is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALFABS AUSTRALIA's current ROA % is 1.96%, which is 70% below median its own 10-year median of 6.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALFABS AUSTRALIA stock overvalued right now?
ALFABS AUSTRALIA (ASX:AAL) has a current ROA % of 1.96%. The current ROA % is 1.96%, which is 70% below median its 10-year median of 6.45 and 20.3% below the Conglomerates industry median of 2.46. ALFABS AUSTRALIA's overall GF Score™ is 20/100 with 5 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 ALFABS AUSTRALIA (ASX:AAL), the current ROA % is 1.96% 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.
ALFABS AUSTRALIA Ltd is a company that provides a design-to-delivery solution for its clients across heavy steel fabrication, construction, and maintenance services, mining equipment, protective coatings, and transport. Its reportable segments are Mining, Engineering, and Other. The Mining segment is engaged in the manufacture, repair, overhaul, servicing, and hire of underground mining and ancillary equipment, together with sales of mining-related consumables and spare parts. The Engineering segment, which derives maximum revenue for the company, is involved in heavy steel fabrication, site installation works, and site-based maintenance; and the Other segment represents head office and ancillary businesses, including protective coatings and transport.
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