ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Better Home & Finance Holding Co's annualizedNet Income for the quarter that ended in Mar. 2026 was $-281.2 Mil.
Better Home & Finance Holding Co's average Total Assets over the quarter that ended in Mar. 2026 was $1,537.1 Mil. Therefore, Better Home & Finance Holding Co's annualized ROA % for the quarter that ended in Mar. 2026 was -18.30%.
BETR'
s ROA % Range Over the Past 10 Years
Min: -53.94 Med: -22.69 Max: -9.13
Current: -13.86
During the past 5 years, Better Home & Finance Holding Co's highest ROA % was -9.13%. The lowest was -53.94%. And the median was -22.69%.
BETR's ROA % is ranked worse than 99.54% of 1529
companies
in the Banks industry
Industry Median: 0.98
vs BETR: -13.86
Better Home & Finance Holding Co (NAS:BETR) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
Better Home & Finance Holding Co ROA % Related Terms
Better Home & Finance Holding Co ROA % Historical 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.
For the Mortgage Finance subindustry, Better Home & Finance Holding Co'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.
Better Home & Finance Holding Co ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Better Home & Finance Holding Co's ROA % distribution charts can be found below:
* The bar in red indicates where Better Home & Finance Holding Co'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 four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Better Home & Finance Holding Co (BETR) has a ROA % of -18.30% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Better Home & Finance Holding Co and its competitors. According to the industry distribution chart, Better Home & Finance Holding Co ranks #1522 out of 1529 companies in the Banks industry, placing it in the top 99.5%.
Is Better Home & Finance Holding Co's ROA % too high?
Better Home & Finance Holding Co's current ROA % is -18.30%. Based on the distribution chart, Better Home & Finance Holding Co ranks #1522 out of 1529 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Better Home & Finance Holding Co has a GF Score™ of 26/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Better Home & Finance Holding Co's ROA % compare to VEL and LDI?
According to the Banks industry distribution chart, Better Home & Finance Holding Co ranks #1522 out of 1529 companies for ROA %. This places Better Home & Finance Holding Co in the lower half of its industry. The industry median ROA % is 0.98. 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 Banks company?
The median ROA % among Banks companies is 0.98, based on 1,529 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 Better Home & Finance Holding Co and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Better Home & Finance Holding Co's current ROA % is -18.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Better Home & Finance Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Better Home & Finance Holding Co (BETR) is currently considered Modestly Undervalued. The stock's GF Value™ is $34.42, compared to a current price of $25.68 — trading 25.4% below its estimated fair value. The current ROA % is -18.30%. Better Home & Finance Holding Co's overall GF Score™ is 26/100 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 Better Home & Finance Holding Co (BETR), the current ROA % is -18.30% as of Mar. 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 Better Home & Finance Holding Co (BETR) Overvalued in 2026?
Based on GuruFocus' analysis, Better Home & Finance Holding Co stock appears to be undervalued.
The current stock price of $25.68 is trading 25.4% below its estimated GF Value™ of $34.42.
GuruFocus considers Better Home & Finance Holding Co to be Modestly Undervalued.
Key valuation signals for BETR:
ROA %: -18.30%
GF Value™: $34.42 vs. price of $25.68 (25.4% below fair value)
No single metric tells the full story. See the BETR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Better Home & Finance Holding Co Business Description
Better Home & Finance Holding Co is a technology-enabled homeownership company that provides mortgage, home equity, and related services through a digital platform. The company operates through two reportable segments: Home Finance, which focuses on residential mortgage origination, including purchase, refinance, and home equity products, generating revenue mainly from loan sales; and Banking, which, through its U.K. subsidiary Birmingham Bank, offers a range of financial products and services to consumers and small businesses. It generates the majority of its revenue from the Home Finance segment.
26GF Score
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