London City EquitiesASX:LCE 68 ROA % is 1.21% as of Dec. 2025, which is 256% above its 10-year median of 0.34. GuruFocus rates ASX:LCE with a GF Score™ of 68/100 and a GF Value™ of A$1.08 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,632 Asset Management companies, London City Equities ranks worse than 65.13% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. London City Equities's annualizedNet Income for the quarter that ended in Dec. 2025 was A$0.35 Mil.
London City Equities's average Total Assets over the quarter that ended in Dec. 2025 was A$28.99 Mil. Therefore, London City Equities's annualized ROA % for the quarter that ended in Dec. 2025 was 1.21%.
The historical rank and industry rank for London City Equities's ROA % or its related term are showing as below:
ASX:LCE'
s ROA % Range Over the Past 10 Years
Min: -0.18 Med: 0.34 Max: 8.51
Current: 1.35
During the past 13 years, London City Equities's highest ROA % was 8.51%. The lowest was -0.18%. And the median was 0.34%.
ASX:LCE's ROA % is ranked worse than 65.13% of 1632
companies
in the Asset Management industry
Industry Median: 3.99
vs ASX:LCE: 1.35
London City Equities (ASX:LCE) 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.
* 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, London City Equities'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.
London City Equities ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, London City Equities's ROA % distribution charts can be found below:
* The bar in red indicates where London City Equities'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.
London City Equities (ASX:LCE) has a ROA % of 1.21% 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 London City Equities and its competitors. This is 256% above median its historical median of 0.34. According to the industry distribution chart, London City Equities ranks #1063 out of 1632 companies in the Asset Management industry, placing it in the top 65.1%.
Is London City Equities' ROA % too high?
London City Equities' current ROA % of 1.21% is 256% above median its 10-year median of 0.34. The Asset Management industry median ROA % is 3.99. London City Equities' value of 1.21% is 69.7% below this industry median. Based on the distribution chart, London City Equities ranks #1063 out of 1632 companies in the Asset Management industry, which is below the industry midpoint. Overall, London City Equities has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does London City Equities' ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, London City Equities ranks #1063 out of 1632 companies for ROA %. This places London City Equities in the lower half of its industry. The industry median ROA % is 3.99. London City Equities' value of 1.21% is 69.7% below this benchmark. While the company's 10-year median is 0.34 vs. the industry median of 3.99, London City Equities 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 3.99, based on 1,632 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. London City Equities's current ROA % of 1.21% is 69.7% 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 London City Equities and its competitors. For the Asset Management industry, the median ROA % is 3.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. London City Equities's current ROA % is 1.21%, which is 256% above median its own 10-year median of 0.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is London City Equities stock overvalued right now?
Based on GuruFocus' analysis, London City Equities (ASX:LCE) is currently considered Modestly Undervalued. The stock's GF Value™ is A$1.08, compared to a current price of A$0.85 — trading 21.3% below its estimated fair value. The current ROA % is 1.21%, which is 256% above median its 10-year median of 0.34 and 69.7% below the Asset Management industry median of 3.99. London City Equities' overall GF Score™ is 68/100 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 London City Equities (ASX:LCE), the current ROA % is 1.21% 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 London City Equities (ASX:LCE) Overvalued in 2026?
Based on GuruFocus' analysis, London City Equities stock appears to be undervalued.
The current stock price of A$0.85 is trading 21.3% below its estimated GF Value™ of A$1.08.
GuruFocus considers London City Equities to be Modestly Undervalued.
Key valuation signals for ASX:LCE:
ROA %: 1.21% (256% above median its 10-year median of 0.34)
GF Value™: A$1.08 vs. price of A$0.85 (21.3% below fair value)
Industry Position: 69.7% below the Asset Management median (#1063 of 1632)
No single metric tells the full story. See the ASX:LCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
London City Equities Ltd is a holding company engaged in investing in Australian equities with market shares and offering growth. The company focuses on providing shareholders with attractive investment returns over the medium to longer terms by enhancing capital growth and paying dividends that, over time, grow faster than the rate of inflation. Its operating segments are Equity Investment, which is the company's key revenue-generating segment, and Other.
68GF Score
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