Coles GroupASX:COL +1.22%76 ROA % is 5.02% as of Dec. 2025, which is 14% below its 10-year median of 5.83. GuruFocus rates ASX:COL with a GF Score™ of 76/100 and a GF Value™ of A$20.07 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 312 Retail - Defensive companies, Coles Group ranks better than 64.42% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Coles Group's annualizedNet Income for the quarter that ended in Dec. 2025 was A$1,022 Mil.
Coles Group's average Total Assets over the quarter that ended in Dec. 2025 was A$20,343 Mil. Therefore, Coles Group's annualized ROA % for the quarter that ended in Dec. 2025 was 5.02%.
The historical rank and industry rank for Coles Group's ROA % or its related term are showing as below:
ASX:COL'
s ROA % Range Over the Past 10 Years
Min: 5 Med: 5.83 Max: 15.47
Current: 5
During the past 8 years, Coles Group's highest ROA % was 15.47%. The lowest was 5.00%. And the median was 5.83%.
ASX:COL's ROA % is ranked better than 64.42% of 312
companies
in the Retail - Defensive industry
Industry Median: 3.56
vs ASX:COL: 5.00
Coles Group (ASX:COL) 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.
Coles Group ROA % Related Terms
Coles Group ROA % Historical Data
* Premium members only.
The historical data trend for Coles Group'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 Grocery Stores subindustry, Coles Group'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.
Coles Group ROA % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's ROA % distribution charts can be found below:
* The bar in red indicates where Coles Group'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.
Coles Group (ASX:COL) has a ROA % of 5.02% 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 Coles Group and its competitors. This is 14% below median its historical median of 5.83. Over the past decade, Coles Group's ROA % has ranged from 5.00 to 15.47. According to the industry distribution chart, Coles Group ranks #111 out of 312 companies in the Retail - Defensive industry, placing it in the top 35.6%.
Is Coles Group's ROA % too high?
Coles Group's current ROA % of 5.02% is 14% below median its 10-year median of 5.83. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 15.47. The Retail - Defensive industry median ROA % is 3.56. Coles Group's value of 5.02% is 41% above this industry median. Based on the distribution chart, Coles Group ranks #111 out of 312 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Coles Group has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coles Group's ROA % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #111 out of 312 companies for ROA %. This puts Coles Group in the upper half of its industry. The industry median ROA % is 3.56. Coles Group's value of 5.02% is 41% above this benchmark. Historically, Coles Group's own ROA % has ranged from 5.00 to 15.47 over the past decade. While the company's 10-year median is 5.83 vs. the industry median of 3.56, Coles Group 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 Retail - Defensive company?
The median ROA % among Retail - Defensive companies is 3.56, based on 312 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. Coles Group's current ROA % of 5.02% is 41% 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 Coles Group and its competitors. For the Retail - Defensive industry, the median ROA % is 3.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coles Group's current ROA % is 5.02%, which is 14% below median its own 10-year median of 5.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Based on GuruFocus' analysis, Coles Group (ASX:COL) is currently considered Modestly Overvalued. The stock's GF Value™ is A$20.07, compared to a current price of A$24.06 — trading 19.9% above its estimated fair value. The current ROA % is 5.02%, which is 14% below median its 10-year median of 5.83 and 41% above the Retail - Defensive industry median of 3.56. Coles Group's overall GF Score™ is 76/100 with 8 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 Coles Group (ASX:COL), the current ROA % is 5.02% 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 Coles Group (ASX:COL) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of A$24.06 is trading 19.9% above its estimated GF Value™ of A$20.07.
GuruFocus considers Coles Group to be Modestly Overvalued.
Key valuation signals for ASX:COL:
ROA %: 5.02% (14% below median its 10-year median of 5.83)
GF Value™: A$20.07 vs. price of A$24.06 (19.9% above fair value)
Industry Position: 41% above the Retail - Defensive median (#111 of 312)
No single metric tells the full story. See the ASX:COL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
76GF Score
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