ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Generation Development Group's annualizedNet Income for the quarter that ended in Dec. 2025 was A$13.7 Mil.
Generation Development Group's average Total Assets over the quarter that ended in Dec. 2025 was A$5,900.4 Mil. Therefore, Generation Development Group's annualized ROA % for the quarter that ended in Dec. 2025 was 0.23%.
The historical rank and industry rank for Generation Development Group's ROA % or its related term are showing as below:
ASX:GDG'
s ROA % Range Over the Past 10 Years
Min: -0.62 Med: 0.17 Max: 0.83
Current: -0.62
During the past 13 years, Generation Development Group's highest ROA % was 0.83%. The lowest was -0.62%. And the median was 0.17%.
ASX:GDG's ROA % is ranked worse than 77.68% of 1635
companies
in the Asset Management industry
Industry Median: 3.97
vs ASX:GDG: -0.62
Generation Development Group (ASX:GDG) 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.
Generation Development Group ROA % Related Terms
Generation Development Group 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, Generation Development 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.
Generation Development Group ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Generation Development Group's ROA % distribution charts can be found below:
* The bar in red indicates where Generation Development 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.
Generation Development Group (ASX:GDG) has a ROA % of 0.23% 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 Generation Development Group and its competitors. This is 35% above median its historical median of 0.17. According to the industry distribution chart, Generation Development Group ranks #1270 out of 1635 companies in the Asset Management industry, placing it in the top 77.7%.
Is Generation Development Group's ROA % too high?
Generation Development Group's current ROA % of 0.23% is 35% above median its 10-year median of 0.17. The Asset Management industry median ROA % is 3.97. Generation Development Group's value of 0.23% is 94.2% below this industry median. Based on the distribution chart, Generation Development Group ranks #1270 out of 1635 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Generation Development Group has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Generation Development Group's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Generation Development Group ranks #1270 out of 1635 companies for ROA %. This places Generation Development Group in the lower half of its industry. The industry median ROA % is 3.97. Generation Development Group's value of 0.23% is 94.2% below this benchmark. While the company's 10-year median is 0.17 vs. the industry median of 3.97, Generation Development Group 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 Asset Management company?
The median ROA % among Asset Management companies is 3.97, based on 1,635 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. Generation Development Group's current ROA % of 0.23% is 94.2% 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 Generation Development Group and its competitors. For the Asset Management industry, the median ROA % is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Generation Development Group's current ROA % is 0.23%, which is 35% above median its own 10-year median of 0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Generation Development Group stock overvalued right now?
Based on GuruFocus' analysis, Generation Development Group (ASX:GDG) is currently considered Possible Value Trap. The stock's GF Value™ is A$7.16, compared to a current price of A$3.37 — trading 52.9% below its estimated fair value. The current ROA % is 0.23%, which is 35% above median its 10-year median of 0.17 and 94.2% below the Asset Management industry median of 3.97. Generation Development Group's overall GF Score™ is 57/100 with 3 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 Generation Development Group (ASX:GDG), the current ROA % is 0.23% 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 Generation Development Group (ASX:GDG) Overvalued in 2026?
Based on GuruFocus' analysis, Generation Development Group stock appears to be undervalued.
The current stock price of A$3.37 is trading 52.9% below its estimated GF Value™ of A$7.16.
GuruFocus considers Generation Development Group to be Possible Value Trap.
Key valuation signals for ASX:GDG:
ROA %: 0.23% (35% above median its 10-year median of 0.17)
GF Value™: A$7.16 vs. price of A$3.37 (52.9% below fair value)
Industry Position: 94.2% below the Asset Management median (#1270 of 1635)
No single metric tells the full story. See the ASX:GDG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1991, Generation originally operated as a pooled development fund, focusing on providing capital to businesses in financial services. Today, the firm is structured across three key business lines within wealth management. The first is through Generation Life, the market leader in investment bonds by in-flows, which offers tax-effective products, including investment bonds and annuities. The second business line is Lonsec, a prominent research and ratings provider to the Australian financial services sector, competing against Morningstar and Zenith. The third division provides managed account solutions, a result of the merger between Evidentia and Lonsec Investment Solutions, offering individually owned accounts professionally managed by experienced portfolio managers.
57GF Score
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