ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kip McGrath Education Centres's annualizedNet Income for the quarter that ended in Dec. 2025 was A$3.52 Mil.
Kip McGrath Education Centres's average Total Assets over the quarter that ended in Dec. 2025 was A$29.74 Mil. Therefore, Kip McGrath Education Centres's annualized ROA % for the quarter that ended in Dec. 2025 was 11.82%.
The historical rank and industry rank for Kip McGrath Education Centres's ROA % or its related term are showing as below:
ASX:KME'
s ROA % Range Over the Past 10 Years
Min: -16.27 Med: 5.98 Max: 13.02
Current: -13.19
During the past 13 years, Kip McGrath Education Centres's highest ROA % was 13.02%. The lowest was -16.27%. And the median was 5.98%.
ASX:KME's ROA % is ranked worse than 88.97% of 263
companies
in the Education industry
Industry Median: 3.9
vs ASX:KME: -13.19
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.
Kip McGrath Education Centres ROA % Related Terms
Kip McGrath Education Centres 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 Education & Training Services subindustry, Kip McGrath Education Centres'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.
Kip McGrath Education Centres ROA % vs Education Industry
For the Education industry and Consumer Defensive sector, Kip McGrath Education Centres's ROA % distribution charts can be found below:
* The bar in red indicates where Kip McGrath Education Centres'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.
Kip McGrath Education Centres (ASX:KME) has a ROA % of 11.82% 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 Kip McGrath Education Centres and its competitors. This is 98% above median its historical median of 5.98. According to the industry distribution chart, Kip McGrath Education Centres ranks #234 out of 263 companies in the Education industry, placing it in the top 89%.
Is Kip McGrath Education Centres' ROA % too high?
Kip McGrath Education Centres' current ROA % of 11.82% is 98% above median its 10-year median of 5.98. The Education industry median ROA % is 3.90. Kip McGrath Education Centres' value of 11.82% is 203.1% above this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #234 out of 263 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Kip McGrath Education Centres has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' ROA % compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #234 out of 263 companies for ROA %. This places Kip McGrath Education Centres in the lower half of its industry. The industry median ROA % is 3.90. Kip McGrath Education Centres' value of 11.82% is 203.1% above this benchmark. While the company's 10-year median is 5.98 vs. the industry median of 3.90, Kip McGrath Education Centres 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 an Education company?
The median ROA % among Education companies is 3.90, based on 263 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. Kip McGrath Education Centres's current ROA % of 11.82% is 203.1% 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 Kip McGrath Education Centres and its competitors. For the Education industry, the median ROA % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kip McGrath Education Centres's current ROA % is 11.82%, which is 98% above median its own 10-year median of 5.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kip McGrath Education Centres stock overvalued right now?
Based on GuruFocus' analysis, Kip McGrath Education Centres (ASX:KME) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.55, compared to a current price of A$0.47 — trading 14.5% below its estimated fair value. The current ROA % is 11.82%, which is 98% above median its 10-year median of 5.98 and 203.1% above the Education industry median of 3.90. Kip McGrath Education Centres' overall GF Score™ is 60/100 with 4 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 Kip McGrath Education Centres (ASX:KME), the current ROA % is 11.82% 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 Kip McGrath Education Centres (ASX:KME) Overvalued in 2026?
Based on GuruFocus' analysis, Kip McGrath Education Centres stock appears to be undervalued.
The current stock price of A$0.47 is trading 14.5% below its estimated GF Value™ of A$0.55.
GuruFocus considers Kip McGrath Education Centres to be Modestly Undervalued.
Key valuation signals for ASX:KME:
ROA %: 11.82% (98% above median its 10-year median of 5.98)
GF Value™: A$0.55 vs. price of A$0.47 (14.5% below fair value)
Industry Position: 203.1% above the Education median (#234 of 263)
No single metric tells the full story. See the ASX:KME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kip McGrath Education Centres Business Description
Kip McGrath Education Centres Ltd offers supplementary education to students through the franchise in Australia and overseas, in the United Kingdom and New Zealand. Its products are face-to-face tuition programs, direct at-home educational products, and online tertiary courses. Geographically, the company operates in Australasia, the United Kingdom and Europe, and Other overseas regions. It derives revenue from franchise fees, student lesson fees, sales of master territories and franchise centers, and direct sales, of which a majority of the revenue is derived from franchise fees.
60GF Score
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