Air Arabia PJSCDFM:AIRARABIA +1.85%80 ROA % is 5.53% as of Mar. 2026, which is 19% below its 10-year median of 6.86. GuruFocus rates DFM:AIRARABIA with a GF Score™ of 80/100 and a GF Value™ of د.إ3.83 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,009 Transportation companies, Air Arabia PJSC ranks better than 85.43% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Air Arabia PJSC's annualizedNet Income for the quarter that ended in Mar. 2026 was د.إ993 Mil.
Air Arabia PJSC's average Total Assets over the quarter that ended in Mar. 2026 was د.إ17,965 Mil. Therefore, Air Arabia PJSC's annualized ROA % for the quarter that ended in Mar. 2026 was 5.53%.
The historical rank and industry rank for Air Arabia PJSC's ROA % or its related term are showing as below:
DFM:AIRARABIA'
s ROA % Range Over the Past 10 Years
Min: -5 Med: 6.86 Max: 10.63
Current: 9.42
During the past 13 years, Air Arabia PJSC's highest ROA % was 10.63%. The lowest was -5.00%. And the median was 6.86%.
DFM:AIRARABIA's ROA % is ranked better than 85.43% of 1009
companies
in the Transportation industry
Industry Median: 3.42
vs DFM:AIRARABIA: 9.42
Air Arabia PJSC (DFM:AIRARABIA) 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.
Air Arabia PJSC ROA % Related Terms
Air Arabia PJSC ROA % Historical Data
* Premium members only.
The historical data trend for Air Arabia PJSC'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 Airlines subindustry, Air Arabia PJSC'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.
Air Arabia PJSC ROA % vs Transportation Industry
For the Transportation industry and Industrials sector, Air Arabia PJSC's ROA % distribution charts can be found below:
* The bar in red indicates where Air Arabia PJSC'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.
Air Arabia PJSC (DFM:AIRARABIA) has a ROA % of 5.53% 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 Air Arabia PJSC and its competitors. This is 19% below median its historical median of 6.86. According to the industry distribution chart, Air Arabia PJSC ranks #147 out of 1009 companies in the Transportation industry, placing it in the top 14.6%.
Is Air Arabia PJSC's ROA % too high?
Air Arabia PJSC's current ROA % of 5.53% is 19% below median its 10-year median of 6.86. The Transportation industry median ROA % is 3.42. Air Arabia PJSC's value of 5.53% is 61.7% above this industry median. Based on the distribution chart, Air Arabia PJSC ranks #147 out of 1009 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Air Arabia PJSC has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air Arabia PJSC's ROA % compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Arabia PJSC ranks #147 out of 1009 companies for ROA %. This places Air Arabia PJSC in the top 15% of its industry — outperforming the majority of peers. The industry median ROA % is 3.42. Air Arabia PJSC's value of 5.53% is 61.7% above this benchmark. While the company's 10-year median is 6.86 vs. the industry median of 3.42, Air Arabia PJSC 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 Transportation company?
The median ROA % among Transportation companies is 3.42, based on 1,009 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. Air Arabia PJSC's current ROA % of 5.53% is 61.7% 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 Air Arabia PJSC and its competitors. For the Transportation industry, the median ROA % is 3.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Arabia PJSC's current ROA % is 5.53%, which is 19% below median its own 10-year median of 6.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Arabia PJSC stock overvalued right now?
Based on GuruFocus' analysis, Air Arabia PJSC (DFM:AIRARABIA) is currently considered Significantly Overvalued. The stock's GF Value™ is د.إ3.83, compared to a current price of د.إ5.52 — trading 44.1% above its estimated fair value. The current ROA % is 5.53%, which is 19% below median its 10-year median of 6.86 and 61.7% above the Transportation industry median of 3.42. Air Arabia PJSC's overall GF Score™ is 80/100 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 Air Arabia PJSC (DFM:AIRARABIA), the current ROA % is 5.53% 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 Air Arabia PJSC (DFM:AIRARABIA) Overvalued in 2026?
Based on GuruFocus' analysis, Air Arabia PJSC stock appears to be overvalued.
The current stock price of د.إ5.52 is trading 44.1% above its estimated GF Value™ of د.إ3.83.
GuruFocus considers Air Arabia PJSC to be Significantly Overvalued.
Key valuation signals for DFM:AIRARABIA:
ROA %: 5.53% (19% below median its 10-year median of 6.86)
GF Value™: د.إ3.83 vs. price of د.إ5.52 (44.1% above fair value)
Industry Position: 61.7% above the Transportation median (#147 of 1009)
No single metric tells the full story. See the DFM:AIRARABIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Arabia PJSC is a group of airlines and companies offering travel and tourism services internationally. Its activities include international commercial air transportation, aircraft trading and rental, aircraft spare parts trading, passenger transport, cargo services, aviation training, aircraft repairs and maintenance, as well as travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services. The company operates through two segments: Airline, covering air transportation, aircraft rental, passenger transport, cargo services, aviation training, and aircraft repairs and maintenance, and Other, covering travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services.
80GF Score
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