Adrad HoldingsASX:AHL 43 ROA % is 2.76% as of Dec. 2025, which is 7% below its 10-year median of 2.98. GuruFocus rates ASX:AHL with a GF Score™ of 43/100 and a GF Value™ of A$0.79 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 3,081 Industrial Products companies, Adrad Holdings ranks worse than 51.64% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Adrad Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was A$5.3 Mil.
Adrad Holdings's average Total Assets over the quarter that ended in Dec. 2025 was A$190.4 Mil. Therefore, Adrad Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 2.76%.
The historical rank and industry rank for Adrad Holdings's ROA % or its related term are showing as below:
ASX:AHL'
s ROA % Range Over the Past 10 Years
Min: 2.85 Med: 2.98 Max: 3.14
Current: 2.85
During the past 3 years, Adrad Holdings's highest ROA % was 3.14%. The lowest was 2.85%. And the median was 2.98%.
ASX:AHL's ROA % is ranked worse than 51.64% of 3081
companies
in the Industrial Products industry
Industry Median: 3.06
vs ASX:AHL: 2.85
Adrad Holdings (ASX:AHL) 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.
Adrad Holdings ROA % Related Terms
Adrad Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Adrad Holdings'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 Specialty Industrial Machinery subindustry, Adrad Holdings'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.
Adrad Holdings ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Adrad Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Adrad Holdings'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.
Adrad Holdings (ASX:AHL) has a ROA % of 2.76% 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 Adrad Holdings and its competitors. This is near median its historical median of 2.98. Over the past decade, Adrad Holdings' ROA % has ranged from 2.85 to 3.14. According to the industry distribution chart, Adrad Holdings ranks #1591 out of 3081 companies in the Industrial Products industry, placing it in the top 51.6%.
Is Adrad Holdings' ROA % too high?
Adrad Holdings' current ROA % of 2.76% is near median its 10-year median of 2.98. Over the past 10 years, this metric has ranged from a low of 2.85 to a high of 3.14. The Industrial Products industry median ROA % is 3.06. Adrad Holdings' value of 2.76% is 9.8% below this industry median. Based on the distribution chart, Adrad Holdings ranks #1591 out of 3081 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Adrad Holdings has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adrad Holdings' ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Adrad Holdings ranks #1591 out of 3081 companies for ROA %. This places Adrad Holdings in the lower half of its industry. The industry median ROA % is 3.06. Adrad Holdings' value of 2.76% is 9.8% below this benchmark. Historically, Adrad Holdings' own ROA % has ranged from 2.85 to 3.14 over the past decade. While the company's 10-year median is 2.98 vs. the industry median of 3.06, Adrad Holdings 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,081 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. Adrad Holdings's current ROA % of 2.76% is 9.8% 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 Adrad Holdings and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adrad Holdings's current ROA % is 2.76%, which is near median its own 10-year median of 2.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adrad Holdings stock overvalued right now?
Based on GuruFocus' analysis, Adrad Holdings (ASX:AHL) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.79, compared to a current price of A$1.44 — trading 82.3% above its estimated fair value. The current ROA % is 2.76%, which is near median its 10-year median of 2.98 and 9.8% below the Industrial Products industry median of 3.06. Adrad Holdings' overall GF Score™ is 43/100 with 6 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 Adrad Holdings (ASX:AHL), the current ROA % is 2.76% 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 Adrad Holdings (ASX:AHL) Overvalued in 2026?
Based on GuruFocus' analysis, Adrad Holdings stock appears to be overvalued.
The current stock price of A$1.44 is trading 82.3% above its estimated GF Value™ of A$0.79.
GuruFocus considers Adrad Holdings to be Significantly Overvalued.
Key valuation signals for ASX:AHL:
ROA %: 2.76% (near median its 10-year median of 2.98)
GF Value™: A$0.79 vs. price of A$1.44 (82.3% above fair value)
Industry Position: 9.8% below the Industrial Products median (#1591 of 3081)
No single metric tells the full story. See the ASX:AHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adrad Holdings Ltd designs and manufactures a wide variety of original equipment and aftermarket heat exchange products for both mobile and stationary applications. The company operates in two segments: Heat Transfer Solutions and Distribution. The Heat Transfer Solutions segment which designs and manufactures industrial cooling solutions for use in road transport and heavy vehicles, mining, power generation, data centres, and rail industries. The Distribution segment includes imports and distributes radiators, mobile and stationary heat exchange products, as well as a variety of automotive parts for the automotive and industrial markets. Geographically, the company derives key revenue from Australasia and the rest from Asia, the Middle East, North America, South America, Europe, & Africa.
43GF Score
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