ChallengerCFIGY 59 ROA % is 1.95% as of Dec. 2025, which is 86% above its 10-year median of 1.05. GuruFocus rates CFIGY with a GF Score™ of 59/100 and a GF Value™ of $18.80. The stock has 8 warning signs investors should review. Among 508 Insurance companies, Challenger ranks worse than 67.13% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Challenger's annualizedNet Income for the quarter that ended in Dec. 2025 was $450 Mil.
Challenger's average Total Assets over the quarter that ended in Dec. 2025 was $23,126 Mil. Therefore, Challenger's annualized ROA % for the quarter that ended in Dec. 2025 was 1.95%.
The historical rank and industry rank for Challenger's ROA % or its related term are showing as below:
CFIGY'
s ROA % Range Over the Past 10 Years
Min: -1.47 Med: 1.05 Max: 2.03
Current: 1.32
During the past 13 years, Challenger's highest ROA % was 2.03%. The lowest was -1.47%. And the median was 1.05%.
CFIGY's ROA % is ranked worse than 67.13% of 508
companies
in the Insurance industry
Industry Median: 2.7
vs CFIGY: 1.32
Challenger (OTCPK:CFIGY) 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.
Challenger ROA % Related Terms
Challenger ROA % Historical Data
* Premium members only.
The historical data trend for Challenger'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 Insurance - Life subindustry, Challenger'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.
Challenger ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, Challenger's ROA % distribution charts can be found below:
* The bar in red indicates where Challenger'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.
Challenger (CFIGY) has a ROA % of 1.95% 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 Challenger and its competitors. This is 86% above median its historical median of 1.05. According to the industry distribution chart, Challenger ranks #341 out of 508 companies in the Insurance industry, placing it in the top 67.1%.
Is Challenger's ROA % too high?
Challenger's current ROA % of 1.95% is 86% above median its 10-year median of 1.05. The Insurance industry median ROA % is 2.70. Challenger's value of 1.95% is 27.8% below this industry median. Based on the distribution chart, Challenger ranks #341 out of 508 companies in the Insurance industry, which is below the industry midpoint. Overall, Challenger has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does Challenger's ROA % compare to AFL and MET?
According to the Insurance industry distribution chart, Challenger ranks #341 out of 508 companies for ROA %. This places Challenger in the lower half of its industry. The industry median ROA % is 2.70. Challenger's value of 1.95% is 27.8% below this benchmark. While the company's 10-year median is 1.05 vs. the industry median of 2.70, Challenger has consistently been below 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 Insurance company?
The median ROA % among Insurance companies is 2.70, based on 508 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. Challenger's current ROA % of 1.95% is 27.8% below 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 Challenger and its competitors. For the Insurance industry, the median ROA % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Challenger's current ROA % is 1.95%, which is 86% above median its own 10-year median of 1.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Challenger stock overvalued right now?
Challenger (CFIGY) has a current ROA % of 1.95%. The stock's GF Value™ is $18.80, compared to a current price of $43.70 — trading 132.4% above its estimated fair value. The current ROA % is 1.95%, which is 86% above median its 10-year median of 1.05 and 27.8% below the Insurance industry median of 2.70. Challenger's overall GF Score™ is 59/100 with 8 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 Challenger (CFIGY), the current ROA % is 1.95% 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 Challenger (CFIGY) Overvalued in 2026?
Based on GuruFocus' analysis, Challenger stock appears to be overvalued.
The current stock price of $43.70 is trading 132.4% above its estimated GF Value™ of $18.80.
Key valuation signals for CFIGY:
ROA %: 1.95% (86% above median its 10-year median of 1.05)
GF Value™: $18.80 vs. price of $43.70 (132.4% above fair value)
Industry Position: 27.8% below the Insurance median (#341 of 508)
No single metric tells the full story. See the CFIGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an upfront lump sum investment and is designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Fidante Partners, which has minority stakes in several boutique global investment managers, and Challenger Investment Management, which primarily manages investments supporting its annuities business.
59GF Score
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