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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Netwealth GroupASX:NWL -0.83%78 ROA % is 43.12% as of Jun. 2026, which is 3% below its 10-year median of 44.53. GuruFocus rates ASX:NWL with a GF Score™ of 78/100 and a GF Value™ of A$34.72 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,892 Software companies, Netwealth Group ranks better than 95.54% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Netwealth Group's annualizedNet Income for the quarter that ended in Jun. 2026 was A$125.7 Mil.
Netwealth Group's average Total Assets over the quarter that ended in Jun. 2026 was A$291.4 Mil. Therefore, Netwealth Group's annualized ROA % for the quarter that ended in Jun. 2026 was 43.12%.
The historical rank and industry rank for Netwealth Group's ROA % or its related term are showing as below:
ASX:NWL'
s ROA % Range Over the Past 10 Years
Min: 21.66 Med: 44.53 Max: 52.16
Current: 21.66
During the past 9 years, Netwealth Group's highest ROA % was 52.16%. The lowest was 21.66%. And the median was 44.53%.
ASX:NWL's ROA % is ranked better than 95.54% of 2892
companies
in the Software industry
Industry Median: 1.725
vs ASX:NWL: 21.66
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 (Jun. 2026) net income data. The Revenue data used here is two times the semi-annual (Jun. 2026) 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.
Netwealth Group ROA % Related Terms
Netwealth Group ROA % Historical Data
* Premium members only.
The historical data trend for Netwealth Group's ROA % can be seen below:
* 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 Software - Application subindustry, Netwealth 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.
Netwealth Group ROA % vs Software Industry
For the Software industry and Technology sector, Netwealth Group's ROA % distribution charts can be found below:
* The bar in red indicates where Netwealth 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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Netwealth Group (ASX:NWL) has a ROA % of 43.12% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Netwealth Group and its competitors. This is near median its historical median of 44.53. Over the past decade, Netwealth Group's ROA % has ranged from 21.66 to 52.16. According to the industry distribution chart, Netwealth Group ranks #129 out of 2892 companies in the Software industry, placing it in the top 4.5%.
Is Netwealth Group's ROA % too high?
Netwealth Group's current ROA % of 43.12% is near median its 10-year median of 44.53. Over the past 10 years, this metric has ranged from a low of 21.66 to a high of 52.16. The Software industry median ROA % is 1.73. Netwealth Group's value of 43.12% is 2399.7% above this industry median. Based on the distribution chart, Netwealth Group ranks #129 out of 2892 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Netwealth Group has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Netwealth Group's ROA % compare to CRM and SHOP?
According to the Software industry distribution chart, Netwealth Group ranks #129 out of 2892 companies for ROA %. This places Netwealth Group in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 1.73. Netwealth Group's value of 43.12% is 2399.7% above this benchmark. Historically, Netwealth Group's own ROA % has ranged from 21.66 to 52.16 over the past decade. While the company's 10-year median is 44.53 vs. the industry median of 1.73, Netwealth 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 a Software company?
The median ROA % among Software companies is 1.73, based on 2,892 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. Netwealth Group's current ROA % of 43.12% is 2399.7% 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 Netwealth Group and its competitors. For the Software industry, the median ROA % is 1.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netwealth Group's current ROA % is 43.12%, which is near median its own 10-year median of 44.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netwealth Group stock overvalued right now?
Based on GuruFocus' analysis, Netwealth Group (ASX:NWL) is currently considered Possible Value Trap. The stock's GF Value™ is A$34.72, compared to a current price of A$20.37 — trading 41.3% below its estimated fair value. The current ROA % is 43.12%, which is near median its 10-year median of 44.53 and 2399.7% above the Software industry median of 1.73. Netwealth Group's overall GF Score™ is 78/100 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 Netwealth Group (ASX:NWL), the current ROA % is 43.12% as of Jun. 2026. 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 Netwealth Group (ASX:NWL) Overvalued in 2026?
Based on GuruFocus' analysis, Netwealth Group stock appears to be undervalued.
The current stock price of A$20.37 is trading 41.3% below its estimated GF Value™ of A$34.72.
GuruFocus considers Netwealth Group to be Possible Value Trap.
Key valuation signals for ASX:NWL:
ROA %: 43.12% (near median its 10-year median of 44.53)
GF Value™: A$34.72 vs. price of A$20.37 (41.3% below fair value)
Industry Position: 2399.7% above the Software median (#129 of 2892)
No single metric tells the full story. See the ASX:NWL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Netwealth provides cloud-based investment administration software as a service in Australia via its proprietary platform. Netwealth's platform provides portfolio administration, investment management tools, and investment and managed account services to financial intermediaries and directly to clients. The company charges SaaS fees based on funds under administration and management on its platform. Netwealth also offers Netwealth-branded investment products on its platform, which are managed by third-party investment managers.
78GF Score
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