Stepchange HoldingsASX:STH -1.92%24 ROA % is 3.27% as of Dec. 2025, which is 93% below its 10-year median of 45.00. GuruFocus rates ASX:STH with a GF Score™ of 24/100. The stock has 1 warning sign investors should review. Among 2,885 Software companies, Stepchange Holdings ranks worse than 50.19% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Stepchange Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was A$1.05 Mil.
Stepchange Holdings's average Total Assets over the quarter that ended in Dec. 2025 was A$32.02 Mil. Therefore, Stepchange Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 3.27%.
The historical rank and industry rank for Stepchange Holdings's ROA % or its related term are showing as below:
ASX:STH'
s ROA % Range Over the Past 10 Years
Min: 1.64 Med: 45 Max: 52.81
Current: 1.64
During the past 2 years, Stepchange Holdings's highest ROA % was 52.81%. The lowest was 1.64%. And the median was 45.00%.
ASX:STH's ROA % is ranked worse than 50.19% of 2885
companies
in the Software industry
Industry Median: 1.68
vs ASX:STH: 1.64
Stepchange Holdings (ASX:STH) 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.
Stepchange Holdings ROA % Related Terms
Stepchange Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Stepchange Holdings'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, Stepchange Holdings'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.
Stepchange Holdings ROA % vs Software Industry
For the Software industry and Technology sector, Stepchange Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Stepchange Holdings'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.
Stepchange Holdings (ASX:STH) has a ROA % of 3.27% 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 Stepchange Holdings and its competitors. This is 93% below median its historical median of 45.00. Over the past decade, Stepchange Holdings' ROA % has ranged from 1.64 to 52.81. According to the industry distribution chart, Stepchange Holdings ranks #1448 out of 2885 companies in the Software industry, placing it in the top 50.2%.
Is Stepchange Holdings' ROA % too high?
Stepchange Holdings' current ROA % of 3.27% is 93% below median its 10-year median of 45.00. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 52.81. The Software industry median ROA % is 1.68. Stepchange Holdings' value of 3.27% is 94.6% above this industry median. Based on the distribution chart, Stepchange Holdings ranks #1448 out of 2885 companies in the Software industry, which is below the industry midpoint. Overall, Stepchange Holdings has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Stepchange Holdings' ROA % compare to CRM and SHOP?
According to the Software industry distribution chart, Stepchange Holdings ranks #1448 out of 2885 companies for ROA %. This places Stepchange Holdings in the lower half of its industry. The industry median ROA % is 1.68. Stepchange Holdings' value of 3.27% is 94.6% above this benchmark. Historically, Stepchange Holdings' own ROA % has ranged from 1.64 to 52.81 over the past decade. While the company's 10-year median is 45.00 vs. the industry median of 1.68, Stepchange Holdings 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 1.68, based on 2,885 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. Stepchange Holdings's current ROA % of 3.27% is 94.6% 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 Stepchange Holdings and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepchange Holdings's current ROA % is 3.27%, which is 93% below median its own 10-year median of 45.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stepchange Holdings stock overvalued right now?
Stepchange Holdings (ASX:STH) has a current ROA % of 3.27%. The current ROA % is 3.27%, which is 93% below median its 10-year median of 45.00 and 94.6% above the Software industry median of 1.68. Stepchange Holdings' overall GF Score™ is 24/100 with 1 warning sign 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 Stepchange Holdings (ASX:STH), the current ROA % is 3.27% 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.
Stepchange Holdings Ltd is engaged in providing software services. It delivers end-to-end SAP ERP and digital transformation service. Its services include: Strategic Alignment and Execution; Program and Project Management; Change Management; and Business Analysis.
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