Balfour BeattyBAFBF +6.06%77 ROA % is 5.31% as of Dec. 2025, which is 71% above its 10-year median of 3.11. GuruFocus rates BAFBF with a GF Score™ of 77/100 and a GF Value™ of $7.08 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,782 Construction companies, Balfour Beatty ranks better than 62.35% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Balfour Beatty's annualizedNet Income for the quarter that ended in Dec. 2025 was $434 Mil.
Balfour Beatty's average Total Assets over the quarter that ended in Dec. 2025 was $8,163 Mil. Therefore, Balfour Beatty's annualized ROA % for the quarter that ended in Dec. 2025 was 5.31%.
The historical rank and industry rank for Balfour Beatty's ROA % or its related term are showing as below:
BAFBF'
s ROA % Range Over the Past 10 Years
Min: 0.51 Med: 3.11 Max: 5.78
Current: 4.45
During the past 13 years, Balfour Beatty's highest ROA % was 5.78%. The lowest was 0.51%. And the median was 3.11%.
BAFBF's ROA % is ranked better than 62.35% of 1782
companies
in the Construction industry
Industry Median: 2.79
vs BAFBF: 4.45
Balfour Beatty (OTCPK:BAFBF) 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.
Balfour Beatty ROA % Related Terms
Balfour Beatty ROA % Historical Data
* Premium members only.
The historical data trend for Balfour Beatty'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 Engineering & Construction subindustry, Balfour Beatty'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.
Balfour Beatty ROA % vs Construction Industry
For the Construction industry and Industrials sector, Balfour Beatty's ROA % distribution charts can be found below:
* The bar in red indicates where Balfour Beatty'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.
Balfour Beatty (BAFBF) has a ROA % of 5.31% 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 Balfour Beatty and its competitors. This is 71% above median its historical median of 3.11. Over the past decade, Balfour Beatty's ROA % has ranged from 0.51 to 5.78. According to the industry distribution chart, Balfour Beatty ranks #671 out of 1782 companies in the Construction industry, placing it in the top 37.7%.
Is Balfour Beatty's ROA % too high?
Balfour Beatty's current ROA % of 5.31% is 71% above median its 10-year median of 3.11. Over the past 10 years, this metric has ranged from a low of 0.51 to a high of 5.78. The Construction industry median ROA % is 2.79. Balfour Beatty's value of 5.31% is 90.3% above this industry median. Based on the distribution chart, Balfour Beatty ranks #671 out of 1782 companies in the Construction industry, which is above the industry midpoint. Overall, Balfour Beatty has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balfour Beatty's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Balfour Beatty ranks #671 out of 1782 companies for ROA %. This puts Balfour Beatty in the upper half of its industry. The industry median ROA % is 2.79. Balfour Beatty's value of 5.31% is 90.3% above this benchmark. Historically, Balfour Beatty's own ROA % has ranged from 0.51 to 5.78 over the past decade. While the company's 10-year median is 3.11 vs. the industry median of 2.79, Balfour Beatty 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 Construction company?
The median ROA % among Construction companies is 2.79, based on 1,782 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. Balfour Beatty's current ROA % of 5.31% is 90.3% 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 Balfour Beatty and its competitors. For the Construction industry, the median ROA % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balfour Beatty's current ROA % is 5.31%, which is 71% above median its own 10-year median of 3.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balfour Beatty stock overvalued right now?
Based on GuruFocus' analysis, Balfour Beatty (BAFBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.08, compared to a current price of $11.20 — trading 58.2% above its estimated fair value. The current ROA % is 5.31%, which is 71% above median its 10-year median of 3.11 and 90.3% above the Construction industry median of 2.79. Balfour Beatty's overall GF Score™ is 77/100 with 7 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 Balfour Beatty (BAFBF), the current ROA % is 5.31% 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 Balfour Beatty (BAFBF) Overvalued in 2026?
Based on GuruFocus' analysis, Balfour Beatty stock appears to be overvalued.
The current stock price of $11.20 is trading 58.2% above its estimated GF Value™ of $7.08.
GuruFocus considers Balfour Beatty to be Significantly Overvalued.
Key valuation signals for BAFBF:
ROA %: 5.31% (71% above median its 10-year median of 3.11)
GF Value™: $7.08 vs. price of $11.20 (58.2% above fair value)
Industry Position: 90.3% above the Construction median (#671 of 1782)
No single metric tells the full story. See the BAFBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balfour Beatty PLC finances builds, and maintains infrastructure projects. It finances, develops, builds, maintains, and operates the increasingly complex and critical infrastructure that supports national economies and delivers projects at the heart of local communities. It operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets also invests in real estate-type assets, in particular private residential and student accommodation assets. The majority of sales are derived from the United Kingdom and the United States.
77GF Score
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