ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. MP Materials's annualizedNet Income for the quarter that ended in Mar. 2026 was R$-167 Mil.
MP Materials's average Total Assets over the quarter that ended in Mar. 2026 was R$20,582 Mil. Therefore, MP Materials's annualized ROA % for the quarter that ended in Mar. 2026 was -0.81%.
The historical rank and industry rank for MP Materials's ROA % or its related term are showing as below:
BSP:M2PM34'
s ROA % Range Over the Past 10 Years
Min: -6.64 Med: -2.77 Max: 14
Current: -2.2
During the past 7 years, MP Materials's highest ROA % was 14.00%. The lowest was -6.64%. And the median was -2.77%.
BSP:M2PM34's ROA % is ranked better than 71.78% of 2665
companies
in the Metals & Mining industry
Industry Median: -16.72
vs BSP:M2PM34: -2.20
MP Materials (BSP:M2PM34) 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.
MP Materials ROA % Related Terms
MP Materials ROA % Historical Data
* Premium members only.
The historical data trend for MP Materials'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 Other Industrial Metals & Mining subindustry, MP Materials'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.
MP Materials ROA % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, MP Materials's ROA % distribution charts can be found below:
* The bar in red indicates where MP Materials'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.
MP Materials (BSP:M2PM34) has a ROA % of -0.81% 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 MP Materials and its competitors. According to the industry distribution chart, MP Materials ranks #752 out of 2665 companies in the Metals & Mining industry, placing it in the top 28.2%.
Is MP Materials' ROA % too high?
MP Materials' current ROA % is -0.81%. Based on the distribution chart, MP Materials ranks #752 out of 2665 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, MP Materials has a GF Score™ of 35/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MP Materials' ROA % compare to USAR and MTRN?
According to the Metals & Mining industry distribution chart, MP Materials ranks #752 out of 2665 companies for ROA %. This puts MP Materials in the upper half of its industry. 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 Metals & Mining company?
A good ROA % depends on the Metals & Mining industry context. 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 MP Materials and its competitors. MP Materials's current ROA % is -0.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MP Materials stock overvalued right now?
Based on GuruFocus' analysis, MP Materials (BSP:M2PM34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$33.51, compared to a current price of R$59.97 — trading 79% above its estimated fair value. The current ROA % is -0.81%. MP Materials' overall GF Score™ is 35/100 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 MP Materials (BSP:M2PM34), the current ROA % is -0.81% 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 MP Materials (BSP:M2PM34) Overvalued in 2026?
Based on GuruFocus' analysis, MP Materials stock appears to be overvalued.
The current stock price of R$59.97 is trading 79% above its estimated GF Value™ of R$33.51.
GuruFocus considers MP Materials to be Significantly Overvalued.
Key valuation signals for BSP:M2PM34:
ROA %: -0.81%
GF Value™: R$33.51 vs. price of R$59.97 (79% above fair value)
No single metric tells the full story. See the BSP:M2PM34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MP Materials Corp is the producer of rare earth materials in the Western Hemisphere. The company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility, the only rare earth mining and processing site of scale in North America. The company is also developing a rare earth metal, alloy, and magnet manufacturing facility in Fort Worth, Texas. The company's operations are organized into two reportable segments: Materials and Magnetics.
35GF Score
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