Central SecuritiesCET +0.50%49 ROA % is 18.57% as of Dec. 2025, which is 3% above its 10-year median of 18.05. GuruFocus rates CET with a GF Score™ of 49/100 and a GF Value™ of $48.47 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,638 Asset Management companies, Central Securities ranks better than 83.64% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Central Securities's annualizedNet Income for the quarter that ended in Dec. 2025 was $321.5 Mil.
Central Securities's average Total Assets over the quarter that ended in Dec. 2025 was $1,730.8 Mil. Therefore, Central Securities's annualized ROA % for the quarter that ended in Dec. 2025 was 18.57%.
The historical rank and industry rank for Central Securities's ROA % or its related term are showing as below:
CET'
s ROA % Range Over the Past 10 Years
Min: -12.85 Med: 18.05 Max: 29.84
Current: 15.8
During the past 13 years, Central Securities's highest ROA % was 29.84%. The lowest was -12.85%. And the median was 18.05%.
CET's ROA % is ranked better than 83.64% of 1638
companies
in the Asset Management industry
Industry Median: 3.95
vs CET: 15.80
Central Securities (AMEX:CET) 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.
Central Securities ROA % Related Terms
Central Securities ROA % Historical Data
* Premium members only.
The historical data trend for Central Securities'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 Asset Management subindustry, Central Securities'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.
Central Securities ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Central Securities's ROA % distribution charts can be found below:
* The bar in red indicates where Central Securities'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.
Central Securities (CET) has a ROA % of 18.57% 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 Central Securities and its competitors. This is near median its historical median of 18.05. According to the industry distribution chart, Central Securities ranks #268 out of 1638 companies in the Asset Management industry, placing it in the top 16.4%.
Is Central Securities' ROA % too high?
Central Securities' current ROA % of 18.57% is near median its 10-year median of 18.05. The Asset Management industry median ROA % is 3.95. Central Securities' value of 18.57% is 370.1% above this industry median. Based on the distribution chart, Central Securities ranks #268 out of 1638 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Central Securities has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Central Securities' ROA % compare to ECAT and DXYZ?
According to the Asset Management industry distribution chart, Central Securities ranks #268 out of 1638 companies for ROA %. This places Central Securities in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 3.95. Central Securities' value of 18.57% is 370.1% above this benchmark. While the company's 10-year median is 18.05 vs. the industry median of 3.95, Central Securities 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 Asset Management company?
The median ROA % among Asset Management companies is 3.95, based on 1,638 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. Central Securities's current ROA % of 18.57% is 370.1% 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 Central Securities and its competitors. For the Asset Management industry, the median ROA % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Central Securities's current ROA % is 18.57%, which is near median its own 10-year median of 18.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central Securities stock overvalued right now?
Based on GuruFocus' analysis, Central Securities (CET) is currently considered Fairly Valued. The stock's GF Value™ is $48.47, compared to a current price of $51.83 — trading 6.9% above its estimated fair value. The current ROA % is 18.57%, which is near median its 10-year median of 18.05 and 370.1% above the Asset Management industry median of 3.95. Central Securities' overall GF Score™ is 49/100 with 5 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 Central Securities (CET), the current ROA % is 18.57% 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 Central Securities (CET) Overvalued in 2026?
Based on GuruFocus' analysis, Central Securities stock appears to be overvalued.
The current stock price of $51.83 is trading 6.9% above its estimated GF Value™ of $48.47.
GuruFocus considers Central Securities to be Fairly Valued.
Key valuation signals for CET:
ROA %: 18.57% (near median its 10-year median of 18.05)
GF Value™: $48.47 vs. price of $51.83 (6.9% above fair value)
Industry Position: 370.1% above the Asset Management median (#268 of 1638)
No single metric tells the full story. See the CET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Central Securities Corp is a non-diversified closed-end management investment company. The company's investment objective is long-term growth of capital. It invests in common stocks, bonds, convertible bonds, preferred stocks, convertible preferred stocks, warrants, options real estate, or short-term obligations of governments, banks, and corporations.
49GF Score
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