Australian Ethical InvestmentASX:AEF -0.74%98 ROA % is 38.51% as of Dec. 2025, which is 62% above its 10-year median of 23.73. GuruFocus rates ASX:AEF with a GF Score™ of 98/100 and a GF Value™ of A$6.36 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 1,638 Asset Management companies, Australian Ethical Investment ranks better than 97.01% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Australian Ethical Investment's annualizedNet Income for the quarter that ended in Dec. 2025 was A$26.9 Mil.
Australian Ethical Investment's average Total Assets over the quarter that ended in Dec. 2025 was A$69.8 Mil. Therefore, Australian Ethical Investment's annualized ROA % for the quarter that ended in Dec. 2025 was 38.51%.
The historical rank and industry rank for Australian Ethical Investment's ROA % or its related term are showing as below:
ASX:AEF'
s ROA % Range Over the Past 10 Years
Min: 14.74 Med: 23.73 Max: 36.89
Current: 36.89
During the past 13 years, Australian Ethical Investment's highest ROA % was 36.89%. The lowest was 14.74%. And the median was 23.73%.
ASX:AEF's ROA % is ranked better than 97.01% of 1638
companies
in the Asset Management industry
Industry Median: 3.95
vs ASX:AEF: 36.89
Australian Ethical Investment (ASX:AEF) 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.
Australian Ethical Investment ROA % Related Terms
Australian Ethical Investment 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.
For the Asset Management subindustry, Australian Ethical Investment'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.
Australian Ethical Investment ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Australian Ethical Investment's ROA % distribution charts can be found below:
* The bar in red indicates where Australian Ethical Investment'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.
Australian Ethical Investment (ASX:AEF) has a ROA % of 38.51% 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 Australian Ethical Investment and its competitors. This is 62% above median its historical median of 23.73. Over the past decade, Australian Ethical Investment's ROA % has ranged from 14.74 to 36.89. According to the industry distribution chart, Australian Ethical Investment ranks #49 out of 1638 companies in the Asset Management industry, placing it in the top 3%.
Is Australian Ethical Investment's ROA % too high?
Australian Ethical Investment's current ROA % of 38.51% is 62% above median its 10-year median of 23.73. Over the past 10 years, this metric has ranged from a low of 14.74 to a high of 36.89. The Asset Management industry median ROA % is 3.95. Australian Ethical Investment's value of 38.51% is 874.9% above this industry median. Based on the distribution chart, Australian Ethical Investment ranks #49 out of 1638 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Australian Ethical Investment has a GF Score™ of 98/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Australian Ethical Investment's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Australian Ethical Investment ranks #49 out of 1638 companies for ROA %. This places Australian Ethical Investment in the top 3% of its industry — outperforming the majority of peers. The industry median ROA % is 3.95. Australian Ethical Investment's value of 38.51% is 874.9% above this benchmark. Historically, Australian Ethical Investment's own ROA % has ranged from 14.74 to 36.89 over the past decade. While the company's 10-year median is 23.73 vs. the industry median of 3.95, Australian Ethical Investment 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 3.95, based on 1,638 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. Australian Ethical Investment's current ROA % of 38.51% is 874.9% 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 Australian Ethical Investment and its competitors. For the Asset Management industry, the median ROA % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Ethical Investment's current ROA % is 38.51%, which is 62% above median its own 10-year median of 23.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Ethical Investment stock overvalued right now?
Based on GuruFocus' analysis, Australian Ethical Investment (ASX:AEF) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.36, compared to a current price of A$4.05 — trading 36.3% below its estimated fair value. The current ROA % is 38.51%, which is 62% above median its 10-year median of 23.73 and 874.9% above the Asset Management industry median of 3.95. Australian Ethical Investment's overall GF Score™ is 98/100 with 2 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 Australian Ethical Investment (ASX:AEF), the current ROA % is 38.51% 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 Australian Ethical Investment (ASX:AEF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Ethical Investment stock appears to be undervalued.
The current stock price of A$4.05 is trading 36.3% below its estimated GF Value™ of A$6.36.
GuruFocus considers Australian Ethical Investment to be Possible Value Trap.
Key valuation signals for ASX:AEF:
ROA %: 38.51% (62% above median its 10-year median of 23.73)
GF Value™: A$6.36 vs. price of A$4.05 (36.3% below fair value)
Industry Position: 874.9% above the Asset Management median (#49 of 1638)
No single metric tells the full story. See the ASX:AEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Ethical Investment Business Description
Australian Ethical Investment Ltd is an Australian-based company engaged in the operating segment of Funds Management. The company is involved in acting as the responsible entity for a range of public offer ethically managed investment schemes and acting as the Trustee of the Australian Ethical Retail Superannuation Fund (Super Fund). The various products offered by the company are Super, Managed funds, ETFs, Insurance, and Pension.
98GF Score
Get the complete analysis for ASX:AEF
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:AEF has been successfully added to your 
