Downer EDIDNERF 62 ROA % is 3.01% as of Dec. 2025, which is 50% above its 10-year median of 2.01. GuruFocus rates DNERF with a GF Score™ of 62/100 and a GF Value™ of $1.67. The stock has 7 warning signs investors should review. Among 1,782 Construction companies, Downer EDI ranks worse than 51.63% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Downer EDI's annualizedNet Income for the quarter that ended in Dec. 2025 was $124 Mil.
Downer EDI's average Total Assets over the quarter that ended in Dec. 2025 was $4,130 Mil. Therefore, Downer EDI's annualized ROA % for the quarter that ended in Dec. 2025 was 3.01%.
The historical rank and industry rank for Downer EDI's ROA % or its related term are showing as below:
DNERF'
s ROA % Range Over the Past 10 Years
Min: -5.22 Med: 2.01 Max: 4.4
Current: 2.57
During the past 13 years, Downer EDI's highest ROA % was 4.40%. The lowest was -5.22%. And the median was 2.01%.
DNERF's ROA % is ranked worse than 51.63% of 1782
companies
in the Construction industry
Industry Median: 2.79
vs DNERF: 2.57
Downer EDI (OTCPK:DNERF) 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.
Downer EDI ROA % Related Terms
Downer EDI ROA % Historical Data
* Premium members only.
The historical data trend for Downer EDI'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 Engineering & Construction subindustry, Downer EDI'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.
Downer EDI ROA % vs Construction Industry
For the Construction industry and Industrials sector, Downer EDI's ROA % distribution charts can be found below:
* The bar in red indicates where Downer EDI'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.
Downer EDI (DNERF) has a ROA % of 3.01% 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 Downer EDI and its competitors. This is 50% above median its historical median of 2.01. According to the industry distribution chart, Downer EDI ranks #920 out of 1782 companies in the Construction industry, placing it in the top 51.6%.
Is Downer EDI's ROA % too high?
Downer EDI's current ROA % of 3.01% is 50% above median its 10-year median of 2.01. The Construction industry median ROA % is 2.79. Downer EDI's value of 3.01% is 7.9% above this industry median. Based on the distribution chart, Downer EDI ranks #920 out of 1782 companies in the Construction industry, which is below the industry midpoint. Overall, Downer EDI has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does Downer EDI's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Downer EDI ranks #920 out of 1782 companies for ROA %. This places Downer EDI in the lower half of its industry. The industry median ROA % is 2.79. Downer EDI's value of 3.01% is 7.9% above this benchmark. While the company's 10-year median is 2.01 vs. the industry median of 2.79, Downer EDI 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 Construction company?
The median ROA % among Construction companies is 2.79, based on 1,782 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. Downer EDI's current ROA % of 3.01% is 7.9% 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 Downer EDI and its competitors. For the Construction industry, the median ROA % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Downer EDI's current ROA % is 3.01%, which is 50% above median its own 10-year median of 2.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Downer EDI stock overvalued right now?
Downer EDI (DNERF) has a current ROA % of 3.01%. The stock's GF Value™ is $1.67, compared to a current price of $3.00 — trading 79.6% above its estimated fair value. The current ROA % is 3.01%, which is 50% above median its 10-year median of 2.01 and 7.9% above the Construction industry median of 2.79. Downer EDI's overall GF Score™ is 62/100 with 7 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 Downer EDI (DNERF), the current ROA % is 3.01% 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 Downer EDI (DNERF) Overvalued in 2026?
Based on GuruFocus' analysis, Downer EDI stock appears to be overvalued.
The current stock price of $3.00 is trading 79.6% above its estimated GF Value™ of $1.67.
Key valuation signals for DNERF:
ROA %: 3.01% (50% above median its 10-year median of 2.01)
GF Value™: $1.67 vs. price of $3.00 (79.6% above fair value)
Industry Position: 7.9% above the Construction median (#920 of 1782)
No single metric tells the full story. See the DNERF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Downer conducts construction and maintenance in the transport, technology and communications, utilities, rail, and defense segments. The future of Downer is focused on urban services, with mining and higher-risk construction businesses exited. Downer has strong relationships with local and state governments that outsource operational and management activities, ensuring a relatively consistent stream of recurring contract work. The transport segment contributes the majority of earnings.
62GF Score
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