ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Locaweb Servicos de Internet's annualizedNet Income for the quarter that ended in Mar. 2026 was R$86 Mil.
Locaweb Servicos de Internet's average Total Assets over the quarter that ended in Mar. 2026 was R$3,579 Mil. Therefore, Locaweb Servicos de Internet's annualized ROA % for the quarter that ended in Mar. 2026 was 2.40%.
The historical rank and industry rank for Locaweb Servicos de Internet's ROA % or its related term are showing as below:
BSP:LWSA3'
s ROA % Range Over the Past 10 Years
Min: -5.89 Med: 0.8 Max: 4.57
Current: -5.88
During the past 11 years, Locaweb Servicos de Internet's highest ROA % was 4.57%. The lowest was -5.89%. And the median was 0.80%.
BSP:LWSA3's ROA % is ranked worse than 70.06% of 2882
companies
in the Software industry
Industry Median: 1.645
vs BSP:LWSA3: -5.88
Locaweb Servicos de Internet (BSP:LWSA3) 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.
Locaweb Servicos de Internet ROA % Related Terms
Locaweb Servicos de Internet 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 Software - Infrastructure subindustry, Locaweb Servicos de Internet'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.
Locaweb Servicos de Internet ROA % vs Software Industry
For the Software industry and Technology sector, Locaweb Servicos de Internet's ROA % distribution charts can be found below:
* The bar in red indicates where Locaweb Servicos de Internet'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.
Locaweb Servicos de Internet (BSP:LWSA3) has a ROA % of 2.40% 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 Locaweb Servicos de Internet and its competitors. This is 200% above median its historical median of 0.80. According to the industry distribution chart, Locaweb Servicos de Internet ranks #2019 out of 2882 companies in the Software industry, placing it in the top 70.1%.
Is Locaweb Servicos de Internet's ROA % too high?
Locaweb Servicos de Internet's current ROA % of 2.40% is 200% above median its 10-year median of 0.80. The Software industry median ROA % is 1.65. Locaweb Servicos de Internet's value of 2.40% is 45.9% above this industry median. Based on the distribution chart, Locaweb Servicos de Internet ranks #2019 out of 2882 companies in the Software industry, which is below the industry midpoint. Overall, Locaweb Servicos de Internet has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Locaweb Servicos de Internet's ROA % compare to MSFT and ORCL?
According to the Software industry distribution chart, Locaweb Servicos de Internet ranks #2019 out of 2882 companies for ROA %. This places Locaweb Servicos de Internet in the lower half of its industry. The industry median ROA % is 1.65. Locaweb Servicos de Internet's value of 2.40% is 45.9% above this benchmark. While the company's 10-year median is 0.80 vs. the industry median of 1.65, Locaweb Servicos de Internet 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 1.65, based on 2,882 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. Locaweb Servicos de Internet's current ROA % of 2.40% is 45.9% 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 Locaweb Servicos de Internet and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Locaweb Servicos de Internet's current ROA % is 2.40%, which is 200% above median its own 10-year median of 0.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locaweb Servicos de Internet stock overvalued right now?
Based on GuruFocus' analysis, Locaweb Servicos de Internet (BSP:LWSA3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$5.02, compared to a current price of R$4.15 — trading 17.3% below its estimated fair value. The current ROA % is 2.40%, which is 200% above median its 10-year median of 0.80 and 45.9% above the Software industry median of 1.65. Locaweb Servicos de Internet's overall GF Score™ is 82/100 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 Locaweb Servicos de Internet (BSP:LWSA3), the current ROA % is 2.40% 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 Locaweb Servicos de Internet (BSP:LWSA3) Overvalued in 2026?
Based on GuruFocus' analysis, Locaweb Servicos de Internet stock appears to be undervalued.
The current stock price of R$4.15 is trading 17.3% below its estimated GF Value™ of R$5.02.
GuruFocus considers Locaweb Servicos de Internet to be Modestly Undervalued.
Key valuation signals for BSP:LWSA3:
ROA %: 2.40% (200% above median its 10-year median of 0.80)
GF Value™: R$5.02 vs. price of R$4.15 (17.3% below fair value)
Industry Position: 45.9% above the Software median (#2019 of 2882)
No single metric tells the full story. See the BSP:LWSA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Locaweb Servicos de Internet SA is a Brazil-based software company. It offers digital marketing, cloud, and accommodation services such as website hosting, WordPress hosting, domain registration, and email services. The operations of the Company and its subsidiaries are divided into two operating segments: Be Online and SaaS, and Commerce. The Be Online and SaaS segment includes hosting and cloud services, as well as those called SaaS (email, marketing intelligence software, and site builder). The Commerce segment includes e-commerce solutions, platforms, marketplace integration, and sub-acquiring business services. It generates the majority of its revenue from the Commerce segment.
82GF Score
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