BAE SystemsBAESY -0.73%86 ROA % is 5.89% as of Dec. 2025, which is 8% above its 10-year median of 5.44. GuruFocus rates BAESY with a GF Score™ of 86/100 and a GF Value™ of $88.08 (Fairly Valued). The stock has 2 warning signs investors should review. Among 356 Aerospace & Defense companies, BAE Systems ranks better than 69.94% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. BAE Systems's annualizedNet Income for the quarter that ended in Dec. 2025 was $2,926 Mil.
BAE Systems's average Total Assets over the quarter that ended in Dec. 2025 was $49,644 Mil. Therefore, BAE Systems's annualized ROA % for the quarter that ended in Dec. 2025 was 5.89%.
The historical rank and industry rank for BAE Systems's ROA % or its related term are showing as below:
BAESY'
s ROA % Range Over the Past 10 Years
Min: 3.59 Med: 5.44 Max: 6.43
Current: 5.53
During the past 13 years, BAE Systems's highest ROA % was 6.43%. The lowest was 3.59%. And the median was 5.44%.
BAESY's ROA % is ranked better than 69.94% of 356
companies
in the Aerospace & Defense industry
Industry Median: 2.5
vs BAESY: 5.53
BAE Systems (OTCPK:BAESY) 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.
BAE Systems ROA % Related Terms
BAE Systems ROA % Historical Data
* Premium members only.
The historical data trend for BAE Systems'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 Aerospace & Defense subindustry, BAE Systems'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.
BAE Systems ROA % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's ROA % distribution charts can be found below:
* The bar in red indicates where BAE Systems'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.
BAE Systems (BAESY) has a ROA % of 5.89% 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 BAE Systems and its competitors. This is near median its historical median of 5.44. Over the past decade, BAE Systems' ROA % has ranged from 3.59 to 6.43. According to the industry distribution chart, BAE Systems ranks #107 out of 356 companies in the Aerospace & Defense industry, placing it in the top 30.1%.
Is BAE Systems' ROA % too high?
BAE Systems' current ROA % of 5.89% is near median its 10-year median of 5.44. Over the past 10 years, this metric has ranged from a low of 3.59 to a high of 6.43. The Aerospace & Defense industry median ROA % is 2.50. BAE Systems' value of 5.89% is 135.6% above this industry median. Based on the distribution chart, BAE Systems ranks #107 out of 356 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, BAE Systems has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' ROA % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #107 out of 356 companies for ROA %. This puts BAE Systems in the upper half of its industry. The industry median ROA % is 2.50. BAE Systems' value of 5.89% is 135.6% above this benchmark. Historically, BAE Systems' own ROA % has ranged from 3.59 to 6.43 over the past decade. While the company's 10-year median is 5.44 vs. the industry median of 2.50, BAE Systems 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 Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.50, based on 356 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. BAE Systems's current ROA % of 5.89% is 135.6% 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 BAE Systems and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current ROA % is 5.89%, which is near median its own 10-year median of 5.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (BAESY) is currently considered Fairly Valued. The stock's GF Value™ is $88.08, compared to a current price of $94.90 — trading 7.7% above its estimated fair value. The current ROA % is 5.89%, which is near median its 10-year median of 5.44 and 135.6% above the Aerospace & Defense industry median of 2.50. BAE Systems' overall GF Score™ is 86/100 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 BAE Systems (BAESY), the current ROA % is 5.89% 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 BAE Systems (BAESY) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $94.90 is trading 7.7% above its estimated GF Value™ of $88.08.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESY:
ROA %: 5.89% (near median its 10-year median of 5.44)
GF Value™: $88.08 vs. price of $94.90 (7.7% above fair value)
Industry Position: 135.6% above the Aerospace & Defense median (#107 of 356)
No single metric tells the full story. See the BAESY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
86GF Score
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