Morphic Ethical Equity FundASX:MEC 44 ROA % is 5.79% as of Dec. 2025, which is 10% above its 10-year median of 5.25. GuruFocus rates ASX:MEC with a GF Score™ of 44/100 and a GF Value™ of A$0.78 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,635 Asset Management companies, Morphic Ethical Equity Fund ranks better than 69.05% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Morphic Ethical Equity Fund's annualizedNet Income for the quarter that ended in Dec. 2025 was A$2.52 Mil.
Morphic Ethical Equity Fund's average Total Assets over the quarter that ended in Dec. 2025 was A$43.54 Mil. Therefore, Morphic Ethical Equity Fund's annualized ROA % for the quarter that ended in Dec. 2025 was 5.79%.
The historical rank and industry rank for Morphic Ethical Equity Fund's ROA % or its related term are showing as below:
ASX:MEC'
s ROA % Range Over the Past 10 Years
Min: -1.8 Med: 5.25 Max: 16.7
Current: 8.61
During the past 7 years, Morphic Ethical Equity Fund's highest ROA % was 16.70%. The lowest was -1.80%. And the median was 5.25%.
ASX:MEC's ROA % is ranked better than 69.05% of 1635
companies
in the Asset Management industry
Industry Median: 4.02
vs ASX:MEC: 8.61
Morphic Ethical Equity Fund (ASX:MEC) 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, Morphic Ethical Equity Fund'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.
Morphic Ethical Equity Fund ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Morphic Ethical Equity Fund's ROA % distribution charts can be found below:
* The bar in red indicates where Morphic Ethical Equity Fund'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.
Morphic Ethical Equity Fund (ASX:MEC) has a ROA % of 5.79% 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 Morphic Ethical Equity Fund and its competitors. This is 10% above median its historical median of 5.25. According to the industry distribution chart, Morphic Ethical Equity Fund ranks #506 out of 1635 companies in the Asset Management industry, placing it in the top 30.9%.
Is Morphic Ethical Equity Fund's ROA % too high?
Morphic Ethical Equity Fund's current ROA % of 5.79% is 10% above median its 10-year median of 5.25. The Asset Management industry median ROA % is 4.02. Morphic Ethical Equity Fund's value of 5.79% is 44% above this industry median. Based on the distribution chart, Morphic Ethical Equity Fund ranks #506 out of 1635 companies in the Asset Management industry, which is above the industry midpoint. Overall, Morphic Ethical Equity Fund has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morphic Ethical Equity Fund's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Morphic Ethical Equity Fund ranks #506 out of 1635 companies for ROA %. This puts Morphic Ethical Equity Fund in the upper half of its industry. The industry median ROA % is 4.02. Morphic Ethical Equity Fund's value of 5.79% is 44% above this benchmark. While the company's 10-year median is 5.25 vs. the industry median of 4.02, Morphic Ethical Equity Fund 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 Asset Management company?
The median ROA % among Asset Management companies is 4.02, 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. Morphic Ethical Equity Fund's current ROA % of 5.79% is 44% 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 Morphic Ethical Equity Fund and its competitors. For the Asset Management industry, the median ROA % is 4.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morphic Ethical Equity Fund's current ROA % is 5.79%, which is 10% above median its own 10-year median of 5.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morphic Ethical Equity Fund stock overvalued right now?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund (ASX:MEC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.78, compared to a current price of A$1.35 — trading 73.1% above its estimated fair value. The current ROA % is 5.79%, which is 10% above median its 10-year median of 5.25 and 44% above the Asset Management industry median of 4.02. Morphic Ethical Equity Fund's overall GF Score™ is 44/100 with 5 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 Morphic Ethical Equity Fund (ASX:MEC), the current ROA % is 5.79% 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 Morphic Ethical Equity Fund (ASX:MEC) Overvalued in 2026?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund stock appears to be overvalued.
The current stock price of A$1.35 is trading 73.1% above its estimated GF Value™ of A$0.78.
GuruFocus considers Morphic Ethical Equity Fund to be Significantly Overvalued.
Key valuation signals for ASX:MEC:
ROA %: 5.79% (10% above median its 10-year median of 5.25)
GF Value™: A$0.78 vs. price of A$1.35 (73.1% above fair value)
Industry Position: 44% above the Asset Management median (#506 of 1635)
No single metric tells the full story. See the ASX:MEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morphic Ethical Equity Fund Ltd is an investment company. Its investment objective is to provide superior risk-adjusted returns to shareholders, comprising a combination of capital growth and income, thus allowing franked dividends to be paid to shareholders when prudent, and provided the company has sufficient profit reserves and franking credits available. The company invests in a portfolio of internationally listed securities screened to exclude entities involved in environmentally damaging activities (including coal and uranium, mining and oil and gas), intensive farming and aquaculture, tobacco, armaments, alcohol, and gambling. It earns revenue from dividend income, interest income, and other returns from the investment portfolio.
44GF Score
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