TransmetroASX:TCO 66 ROA % is 13.93% as of Dec. 2025, which is 212% above its 10-year median of 4.46. GuruFocus rates ASX:TCO with a GF Score™ of 66/100 and a GF Value™ of A$2.05 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 858 Travel & Leisure companies, Transmetro ranks better than 87.41% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Transmetro's annualizedNet Income for the quarter that ended in Dec. 2025 was A$5.76 Mil.
Transmetro's average Total Assets over the quarter that ended in Dec. 2025 was A$41.35 Mil. Therefore, Transmetro's annualized ROA % for the quarter that ended in Dec. 2025 was 13.93%.
The historical rank and industry rank for Transmetro's ROA % or its related term are showing as below:
ASX:TCO'
s ROA % Range Over the Past 10 Years
Min: -7.94 Med: 4.46 Max: 10
Current: 10
During the past 13 years, Transmetro's highest ROA % was 10.00%. The lowest was -7.94%. And the median was 4.46%.
ASX:TCO's ROA % is ranked better than 87.41% of 858
companies
in the Travel & Leisure industry
Industry Median: 2.375
vs ASX:TCO: 10.00
Transmetro (ASX:TCO) 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.
Transmetro ROA % Related Terms
Transmetro ROA % Historical Data
* Premium members only.
The historical data trend for Transmetro'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 Lodging subindustry, Transmetro'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.
Transmetro ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Transmetro's ROA % distribution charts can be found below:
* The bar in red indicates where Transmetro'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.
Transmetro (ASX:TCO) has a ROA % of 13.93% 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 Transmetro and its competitors. This is 212% above median its historical median of 4.46. According to the industry distribution chart, Transmetro ranks #108 out of 858 companies in the Travel & Leisure industry, placing it in the top 12.6%.
Is Transmetro's ROA % too high?
Transmetro's current ROA % of 13.93% is 212% above median its 10-year median of 4.46. The Travel & Leisure industry median ROA % is 2.38. Transmetro's value of 13.93% is 486.5% above this industry median. Based on the distribution chart, Transmetro ranks #108 out of 858 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Transmetro has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Transmetro's ROA % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Transmetro ranks #108 out of 858 companies for ROA %. This places Transmetro in the top 13% of its industry — outperforming the majority of peers. The industry median ROA % is 2.38. Transmetro's value of 13.93% is 486.5% above this benchmark. While the company's 10-year median is 4.46 vs. the industry median of 2.38, Transmetro 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 Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.38, based on 858 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. Transmetro's current ROA % of 13.93% is 486.5% 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 Transmetro and its competitors. For the Travel & Leisure industry, the median ROA % is 2.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Transmetro's current ROA % is 13.93%, which is 212% above median its own 10-year median of 4.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Transmetro stock overvalued right now?
Based on GuruFocus' analysis, Transmetro (ASX:TCO) is currently considered Modestly Overvalued. The stock's GF Value™ is A$2.05, compared to a current price of A$2.61 — trading 27.3% above its estimated fair value. The current ROA % is 13.93%, which is 212% above median its 10-year median of 4.46 and 486.5% above the Travel & Leisure industry median of 2.38. Transmetro's overall GF Score™ is 66/100 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 Transmetro (ASX:TCO), the current ROA % is 13.93% 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 Transmetro (ASX:TCO) Overvalued in 2026?
Based on GuruFocus' analysis, Transmetro stock appears to be overvalued.
The current stock price of A$2.61 is trading 27.3% above its estimated GF Value™ of A$2.05.
GuruFocus considers Transmetro to be Modestly Overvalued.
Key valuation signals for ASX:TCO:
ROA %: 13.93% (212% above median its 10-year median of 4.46)
GF Value™: A$2.05 vs. price of A$2.61 (27.3% above fair value)
Industry Position: 486.5% above the Travel & Leisure median (#108 of 858)
No single metric tells the full story. See the ASX:TCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Transmetro Corp Ltd provides lodging services. The firm is managed on the basis of service offerings. It also operates a chain of Metro hotels through Metro Hospitality Group which is the trading division of the company. Its segments include Hotels, Inns & Apartments, and Theme Pub. It derives substantial revenue from the Hotels, Inns & Apartments segment.
66GF Score
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