ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Synlait Milk's annualizedNet Income for the quarter that ended in Jan. 2026 was A$-139 Mil.
Synlait Milk's average Total Assets over the quarter that ended in Jan. 2026 was A$1,485 Mil. Therefore, Synlait Milk's annualized ROA % for the quarter that ended in Jan. 2026 was -9.36%.
The historical rank and industry rank for Synlait Milk's ROA % or its related term are showing as below:
ASX:SM1'
s ROA % Range Over the Past 10 Years
Min: -11.45 Med: 4.05 Max: 9.64
Current: -7.49
During the past 13 years, Synlait Milk's highest ROA % was 9.64%. The lowest was -11.45%. And the median was 4.05%.
ASX:SM1's ROA % is ranked worse than 86.68% of 1990
companies
in the Consumer Packaged Goods industry
Industry Median: 3.245
vs ASX:SM1: -7.49
Synlait Milk (ASX:SM1) 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 (Jan. 2026) net income data. The Revenue data used here is two times the semi-annual (Jan. 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.
Synlait Milk ROA % Related Terms
Synlait Milk ROA % Historical Data
* Premium members only.
The historical data trend for Synlait Milk'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 Packaged Foods subindustry, Synlait Milk'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.
Synlait Milk ROA % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Synlait Milk's ROA % distribution charts can be found below:
* The bar in red indicates where Synlait Milk'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 (Jan. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Synlait Milk (ASX:SM1) has a ROA % of -9.36% as of Jan. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Synlait Milk and its competitors. According to the industry distribution chart, Synlait Milk ranks #1725 out of 1990 companies in the Consumer Packaged Goods industry, placing it in the top 86.7%.
Is Synlait Milk's ROA % too high?
Synlait Milk's current ROA % is -9.36%. Based on the distribution chart, Synlait Milk ranks #1725 out of 1990 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Synlait Milk has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Synlait Milk's ROA % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Synlait Milk ranks #1725 out of 1990 companies for ROA %. This places Synlait Milk in the lower half of its industry. The industry median ROA % is 3.25. 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 Consumer Packaged Goods company?
The median ROA % among Consumer Packaged Goods companies is 3.25, based on 1,990 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. 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 Synlait Milk and its competitors. For the Consumer Packaged Goods industry, the median ROA % is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Synlait Milk's current ROA % is -9.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Synlait Milk stock overvalued right now?
Based on GuruFocus' analysis, Synlait Milk (ASX:SM1) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.26, compared to a current price of A$0.33 — trading 26.9% above its estimated fair value. The current ROA % is -9.36%. Synlait Milk's overall GF Score™ is 40/100 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 Synlait Milk (ASX:SM1), the current ROA % is -9.36% as of Jan. 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 Synlait Milk (ASX:SM1) Overvalued in 2026?
Based on GuruFocus' analysis, Synlait Milk stock appears to be overvalued.
The current stock price of A$0.33 is trading 26.9% above its estimated GF Value™ of A$0.26.
GuruFocus considers Synlait Milk to be Significantly Overvalued.
Key valuation signals for ASX:SM1:
ROA %: -9.36%
GF Value™: A$0.26 vs. price of A$0.33 (26.9% above fair value)
No single metric tells the full story. See the ASX:SM1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Synlait Milk Ltd is a dairy processing company that benefits from a differentiated milk supply and operating environment in New Zealand. The business operates within one industry that includes the manufacture of milk powder and its related products, liquid milk, cheese, and butter. Its segment are Synlait and Dairyworks, out of which it derives maximum revenue from Synlait segment.
40GF Score
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