Magellan Financial GroupASX:MFG +2.27%56 ROA % is 13.06% as of Dec. 2025, which is 61% below its 10-year median of 33.71. GuruFocus rates ASX:MFG with a GF Score™ of 56/100 and a GF Value™ of A$6.24 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,639 Asset Management companies, Magellan Financial Group ranks better than 79.32% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Magellan Financial Group's annualizedNet Income for the quarter that ended in Dec. 2025 was A$137.9 Mil.
Magellan Financial Group's average Total Assets over the quarter that ended in Dec. 2025 was A$1,055.8 Mil. Therefore, Magellan Financial Group's annualized ROA % for the quarter that ended in Dec. 2025 was 13.06%.
The historical rank and industry rank for Magellan Financial Group's ROA % or its related term are showing as below:
ASX:MFG'
s ROA % Range Over the Past 10 Years
Min: 13.05 Med: 33.71 Max: 53.68
Current: 13.05
During the past 13 years, Magellan Financial Group's highest ROA % was 53.68%. The lowest was 13.05%. And the median was 33.71%.
ASX:MFG's ROA % is ranked better than 79.32% of 1639
companies
in the Asset Management industry
Industry Median: 3.95
vs ASX:MFG: 13.05
Magellan Financial Group (ASX:MFG) 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, Magellan Financial 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.
Magellan Financial Group ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Magellan Financial Group's ROA % distribution charts can be found below:
* The bar in red indicates where Magellan Financial 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.
Magellan Financial Group (ASX:MFG) has a ROA % of 13.06% 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 Magellan Financial Group and its competitors. This is 61% below median its historical median of 33.71. Over the past decade, Magellan Financial Group's ROA % has ranged from 13.05 to 53.68. According to the industry distribution chart, Magellan Financial Group ranks #339 out of 1639 companies in the Asset Management industry, placing it in the top 20.7%.
Is Magellan Financial Group's ROA % too high?
Magellan Financial Group's current ROA % of 13.06% is 61% below median its 10-year median of 33.71. Over the past 10 years, this metric has ranged from a low of 13.05 to a high of 53.68. The Asset Management industry median ROA % is 3.95. Magellan Financial Group's value of 13.06% is 230.6% above this industry median. Based on the distribution chart, Magellan Financial Group ranks #339 out of 1639 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Magellan Financial Group has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magellan Financial Group's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Magellan Financial Group ranks #339 out of 1639 companies for ROA %. This places Magellan Financial Group in the top 21% of its industry — outperforming the majority of peers. The industry median ROA % is 3.95. Magellan Financial Group's value of 13.06% is 230.6% above this benchmark. Historically, Magellan Financial Group's own ROA % has ranged from 13.05 to 53.68 over the past decade. While the company's 10-year median is 33.71 vs. the industry median of 3.95, Magellan Financial Group 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 3.95, based on 1,639 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. Magellan Financial Group's current ROA % of 13.06% is 230.6% 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 Magellan Financial Group and its competitors. For the Asset Management industry, the median ROA % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magellan Financial Group's current ROA % is 13.06%, which is 61% below median its own 10-year median of 33.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magellan Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Magellan Financial Group (ASX:MFG) is currently considered Significantly Overvalued. The stock's GF Value™ is A$6.24, compared to a current price of A$9.93 — trading 59.1% above its estimated fair value. The current ROA % is 13.06%, which is 61% below median its 10-year median of 33.71 and 230.6% above the Asset Management industry median of 3.95. Magellan Financial Group's overall GF Score™ is 56/100 with 2 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 Magellan Financial Group (ASX:MFG), the current ROA % is 13.06% 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 Magellan Financial Group (ASX:MFG) Overvalued in 2026?
Based on GuruFocus' analysis, Magellan Financial Group stock appears to be overvalued.
The current stock price of A$9.93 is trading 59.1% above its estimated GF Value™ of A$6.24.
GuruFocus considers Magellan Financial Group to be Significantly Overvalued.
Key valuation signals for ASX:MFG:
ROA %: 13.06% (61% below median its 10-year median of 33.71)
GF Value™: A$6.24 vs. price of A$9.93 (59.1% above fair value)
Industry Position: 230.6% above the Asset Management median (#339 of 1639)
No single metric tells the full story. See the ASX:MFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magellan Financial Group was established in 2006 as an active asset manager, before merging with Barrenjoey in 2026 to add investment banking to its offering. The heritage asset management business specializes in global, infrastructure, and Australian equities for domestic retail and institutional investors. More recently, the firm has partnered with external asset managers to distribute funds in areas outside its own investment expertise. Barrenjoey, meanwhile, operates across advisory, capital markets, research and execution, and private capital, holding market-leading positions across several business lines relative to domestic rivals.
56GF Score
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