ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. EDU Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was A$17.05 Mil.
EDU Holdings's average Total Assets over the quarter that ended in Dec. 2025 was A$57.14 Mil. Therefore, EDU Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 29.83%.
The historical rank and industry rank for EDU Holdings's ROA % or its related term are showing as below:
ASX:EDU'
s ROA % Range Over the Past 10 Years
Min: -167.9 Med: -0.64 Max: 32.78
Current: 29.69
During the past 13 years, EDU Holdings's highest ROA % was 32.78%. The lowest was -167.90%. And the median was -0.64%.
ASX:EDU's ROA % is ranked better than 98.5% of 266
companies
in the Education industry
Industry Median: 3.825
vs ASX:EDU: 29.69
EDU Holdings (ASX:EDU) 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.
EDU Holdings ROA % Related Terms
EDU Holdings ROA % Historical Data
* Premium members only.
The historical data trend for EDU 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 Education & Training Services subindustry, EDU 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.
EDU Holdings ROA % vs Education Industry
For the Education industry and Consumer Defensive sector, EDU Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where EDU 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.
EDU Holdings (ASX:EDU) has a ROA % of 29.83% 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 EDU Holdings and its competitors. According to the industry distribution chart, EDU Holdings ranks #4 out of 266 companies in the Education industry, placing it in the top 1.5%.
Is EDU Holdings' ROA % too high?
EDU Holdings' current ROA % is 29.83%. The Education industry median ROA % is 3.83. EDU Holdings' value of 29.83% is 679.9% above this industry median. Based on the distribution chart, EDU Holdings ranks #4 out of 266 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, EDU Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does EDU Holdings' ROA % compare to EDU and TAL?
According to the Education industry distribution chart, EDU Holdings ranks #4 out of 266 companies for ROA %. This places EDU Holdings in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 3.83. EDU Holdings' value of 29.83% is 679.9% above this benchmark. 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 Education company?
The median ROA % among Education companies is 3.83, based on 266 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. EDU Holdings's current ROA % of 29.83% is 679.9% 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 EDU Holdings and its competitors. For the Education industry, the median ROA % is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EDU Holdings's current ROA % is 29.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EDU Holdings stock overvalued right now?
Based on GuruFocus' analysis, EDU Holdings (ASX:EDU) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.73, compared to a current price of A$1.03 — trading 41.1% above its estimated fair value. The current ROA % is 29.83% and 679.9% above the Education industry median of 3.83. EDU Holdings' overall GF Score™ is 61/100 with 1 warning sign 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 EDU Holdings (ASX:EDU), the current ROA % is 29.83% 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 EDU Holdings (ASX:EDU) Overvalued in 2026?
Based on GuruFocus' analysis, EDU Holdings stock appears to be overvalued.
The current stock price of A$1.03 is trading 41.1% above its estimated GF Value™ of A$0.73.
GuruFocus considers EDU Holdings to be Significantly Overvalued.
Key valuation signals for ASX:EDU:
ROA %: 29.83%
GF Value™: A$0.73 vs. price of A$1.03 (41.1% above fair value)
Industry Position: 679.9% above the Education median (#4 of 266)
No single metric tells the full story. See the ASX:EDU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EDU Holdings Ltd is engaged in the provision of tertiary education services. The Group operates in two segments, being Ikon (the provision of higher education to both domestic and international students) and ALG (the provision of vocational education to international students), and in one geographical segment, being Australia. The company offers a diverse range of qualifications, from certificate III entry-level courses to professional master's degrees.
61GF Score
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