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First AcceptanceFACO 68 ROA % is 3.80% as of Mar. 2026, which is 190% above its 10-year median of 1.31. GuruFocus rates FACO with a GF Score™ of 68/100 and a GF Value™ of $4.41 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 506 Insurance companies, First Acceptance ranks better than 71.15% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. First Acceptance's annualizedNet Income for the quarter that ended in Mar. 2026 was $32.8 Mil.
First Acceptance's average Total Assets over the quarter that ended in Mar. 2026 was $861.7 Mil. Therefore, First Acceptance's annualized ROA % for the quarter that ended in Mar. 2026 was 3.80%.
The historical rank and industry rank for First Acceptance's ROA % or its related term are showing as below:
FACO'
s ROA % Range Over the Past 10 Years
Min: -7.3 Med: 1.31 Max: 16.18
Current: 4.41
During the past 13 years, First Acceptance's highest ROA % was 16.18%. The lowest was -7.30%. And the median was 1.31%.
FACO's ROA % is ranked better than 71.15% of 506
companies
in the Insurance industry
Industry Median: 2.62
vs FACO: 4.41
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.
First Acceptance ROA % Related Terms
First Acceptance ROA % Historical Data
* Premium members only.
The historical data trend for First Acceptance'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 - Specialty subindustry, First Acceptance'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.
First Acceptance ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, First Acceptance's ROA % distribution charts can be found below:
* The bar in red indicates where First Acceptance'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.
First Acceptance (FACO) has a ROA % of 3.80% 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 First Acceptance and its competitors. This is 190% above median its historical median of 1.31. According to the industry distribution chart, First Acceptance ranks #146 out of 506 companies in the Insurance industry, placing it in the top 28.9%.
Is First Acceptance's ROA % too high?
First Acceptance's current ROA % of 3.80% is 190% above median its 10-year median of 1.31. The Insurance industry median ROA % is 2.62. First Acceptance's value of 3.80% is 45% above this industry median. Based on the distribution chart, First Acceptance ranks #146 out of 506 companies in the Insurance industry, which is above the industry midpoint. Overall, First Acceptance has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First Acceptance's ROA % compare to JRVR and OSG?
According to the Insurance industry distribution chart, First Acceptance ranks #146 out of 506 companies for ROA %. This puts First Acceptance in the upper half of its industry. The industry median ROA % is 2.62. First Acceptance's value of 3.80% is 45% above this benchmark. While the company's 10-year median is 1.31 vs. the industry median of 2.62, First Acceptance 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 Insurance company?
The median ROA % among Insurance companies is 2.62, based on 506 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. First Acceptance's current ROA % of 3.80% is 45% 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 First Acceptance and its competitors. For the Insurance industry, the median ROA % is 2.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Acceptance's current ROA % is 3.80%, which is 190% above median its own 10-year median of 1.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Acceptance stock overvalued right now?
Based on GuruFocus' analysis, First Acceptance (FACO) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.41, compared to a current price of $5.41 — trading 22.7% above its estimated fair value. The current ROA % is 3.80%, which is 190% above median its 10-year median of 1.31 and 45% above the Insurance industry median of 2.62. First Acceptance's overall GF Score™ is 68/100 with 6 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 First Acceptance (FACO), the current ROA % is 3.80% 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 First Acceptance (FACO) Overvalued in 2026?
Based on GuruFocus' analysis, First Acceptance stock appears to be overvalued.
The current stock price of $5.41 is trading 22.7% above its estimated GF Value™ of $4.41.
GuruFocus considers First Acceptance to be Modestly Overvalued.
Key valuation signals for FACO:
ROA %: 3.80% (190% above median its 10-year median of 1.31)
GF Value™: $4.41 vs. price of $5.41 (22.7% above fair value)
Industry Position: 45% above the Insurance median (#146 of 506)
No single metric tells the full story. See the FACO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Acceptance Corp is engaged in the financial services sector. It is principally a retailer, servicer, and underwriter of non-standard personal automobile insurance. The company's operations generate revenue from selling non-standard personal automobile insurance products and related products in the United States. Its suite of products comprises auto insurance, renters, motorcycle, roadside assistance, and hospital insurance. the company also operates a real estate and corporate segment, which consists of the activities related to the disposition of foreclosed real estate held for sale, interest expenses associated with all debt, and other general corporate overhead expenses.
68GF Score
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