ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. HomeCo Daily Needs REIT's annualizedNet Income for the quarter that ended in Dec. 2025 was A$487.0 Mil.
HomeCo Daily Needs REIT's average Total Assets over the quarter that ended in Dec. 2025 was A$5,075.8 Mil. Therefore, HomeCo Daily Needs REIT's annualized ROA % for the quarter that ended in Dec. 2025 was 9.59%.
The historical rank and industry rank for HomeCo Daily Needs REIT's ROA % or its related term are showing as below:
ASX:HDN'
s ROA % Range Over the Past 10 Years
Min: 1.71 Med: 3.63 Max: 7.49
Current: 7.49
During the past 4 years, HomeCo Daily Needs REIT's highest ROA % was 7.49%. The lowest was 1.71%. And the median was 3.63%.
ASX:HDN's ROA % is ranked better than 78.89% of 938
companies
in the REITs industry
Industry Median: 3.23
vs ASX:HDN: 7.49
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.
* 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 REIT - Retail subindustry, HomeCo Daily Needs REIT'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.
HomeCo Daily Needs REIT ROA % vs REITs Industry
For the REITs industry and Real Estate sector, HomeCo Daily Needs REIT's ROA % distribution charts can be found below:
* The bar in red indicates where HomeCo Daily Needs REIT'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.
HomeCo Daily Needs REIT (ASX:HDN) has a ROA % of 9.59% 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 HomeCo Daily Needs REIT and its competitors. This is 164% above median its historical median of 3.63. Over the past decade, HomeCo Daily Needs REIT's ROA % has ranged from 1.71 to 7.49. According to the industry distribution chart, HomeCo Daily Needs REIT ranks #198 out of 938 companies in the REITs industry, placing it in the top 21.1%.
Is HomeCo Daily Needs REIT's ROA % too high?
HomeCo Daily Needs REIT's current ROA % of 9.59% is 164% above median its 10-year median of 3.63. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 7.49. The REITs industry median ROA % is 3.23. HomeCo Daily Needs REIT's value of 9.59% is 196.9% above this industry median. Based on the distribution chart, HomeCo Daily Needs REIT ranks #198 out of 938 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, HomeCo Daily Needs REIT has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does HomeCo Daily Needs REIT's ROA % compare to SPG and O?
According to the REITs industry distribution chart, HomeCo Daily Needs REIT ranks #198 out of 938 companies for ROA %. This places HomeCo Daily Needs REIT in the top 21% of its industry — outperforming the majority of peers. The industry median ROA % is 3.23. HomeCo Daily Needs REIT's value of 9.59% is 196.9% above this benchmark. Historically, HomeCo Daily Needs REIT's own ROA % has ranged from 1.71 to 7.49 over the past decade. While the company's 10-year median is 3.63 vs. the industry median of 3.23, HomeCo Daily Needs REIT 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 REITs company?
The median ROA % among REITs companies is 3.23, based on 938 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. HomeCo Daily Needs REIT's current ROA % of 9.59% is 196.9% 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 HomeCo Daily Needs REIT and its competitors. For the REITs industry, the median ROA % is 3.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HomeCo Daily Needs REIT's current ROA % is 9.59%, which is 164% above median its own 10-year median of 3.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HomeCo Daily Needs REIT stock overvalued right now?
Based on GuruFocus' analysis, HomeCo Daily Needs REIT (ASX:HDN) is currently considered Fairly Valued. The stock's GF Value™ is A$1.20, compared to a current price of A$1.31 — trading 9.2% above its estimated fair value. The current ROA % is 9.59%, which is 164% above median its 10-year median of 3.63 and 196.9% above the REITs industry median of 3.23. HomeCo Daily Needs REIT's overall GF Score™ is 59/100 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 HomeCo Daily Needs REIT (ASX:HDN), the current ROA % is 9.59% 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 HomeCo Daily Needs REIT (ASX:HDN) Overvalued in 2026?
Based on GuruFocus' analysis, HomeCo Daily Needs REIT stock appears to be overvalued.
The current stock price of A$1.31 is trading 9.2% above its estimated GF Value™ of A$1.20.
GuruFocus considers HomeCo Daily Needs REIT to be Fairly Valued.
Key valuation signals for ASX:HDN:
ROA %: 9.59% (164% above median its 10-year median of 3.63)
GF Value™: A$1.20 vs. price of A$1.31 (9.2% above fair value)
Industry Position: 196.9% above the REITs median (#198 of 938)
No single metric tells the full story. See the ASX:HDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HomeCo Daily Needs REIT is a listed investment trust established and managed by HMC Capital, an ASX-listed alternative asset manager. HMC receives fees from HomeCo in exchange for property, investment, and development management services, and retains a minority interest in the REIT. HomeCo focuses on convenience-based assets that offer everyday goods and services, such as supermarkets, liquor stores, pharmacies, childcare, government and general services. Its portfolio also has a significant weighting to large format retail—a subsector that specializes in furniture, electrical appliances, and other homemaker offerings. Majority of HomeCo's leases has fixed annual rate increases, and a smaller proportion are inflation-linked, with the rest commensurate with supermarket turnover.
59GF Score
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