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First Trust Enhanced Equityome Fund (NYSE:FFA) 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.
First Trust Enhanced Equityome Fund ROA % Related Terms
First Trust Enhanced Equityome Fund ROA % Historical 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.
For the Asset Management subindustry, First Trust Enhanced Equityome Fund'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 Trust Enhanced Equityome Fund ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, First Trust Enhanced Equityome Fund's ROA % distribution charts can be found below:
* The bar in red indicates where First Trust Enhanced Equityome Fund'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.
First Trust Enhanced Equityome Fund (FFA) has a ROA % of 27.05% 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 First Trust Enhanced Equityome Fund and its competitors. This is 51% above median its historical median of 17.95. According to the industry distribution chart, First Trust Enhanced Equityome Fund ranks #244 out of 1633 companies in the Asset Management industry, placing it in the top 14.9%.
Is First Trust Enhanced Equityome Fund's ROA % too high?
First Trust Enhanced Equityome Fund's current ROA % of 27.05% is 51% above median its 10-year median of 17.95. The Asset Management industry median ROA % is 4.40. First Trust Enhanced Equityome Fund's value of 27.05% is 514.8% above this industry median. Based on the distribution chart, First Trust Enhanced Equityome Fund ranks #244 out of 1633 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, First Trust Enhanced Equityome Fund has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Trust Enhanced Equityome Fund's ROA % compare to NBB and ETB?
According to the Asset Management industry distribution chart, First Trust Enhanced Equityome Fund ranks #244 out of 1633 companies for ROA %. This places First Trust Enhanced Equityome Fund in the top 15% of its industry — outperforming the majority of peers. The industry median ROA % is 4.40. First Trust Enhanced Equityome Fund's value of 27.05% is 514.8% above this benchmark. While the company's 10-year median is 17.95 vs. the industry median of 4.40, First Trust Enhanced Equityome Fund 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 4.40, based on 1,633 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 Trust Enhanced Equityome Fund's current ROA % of 27.05% is 514.8% 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 Trust Enhanced Equityome Fund and its competitors. For the Asset Management industry, the median ROA % is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Trust Enhanced Equityome Fund's current ROA % is 27.05%, which is 51% above median its own 10-year median of 17.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Trust Enhanced Equityome Fund stock overvalued right now?
Based on GuruFocus' analysis, First Trust Enhanced Equityome Fund (FFA) is currently considered Fairly Valued. The stock's GF Value™ is $23.66, compared to a current price of $23.21 — trading 1.9% below its estimated fair value. The current ROA % is 27.05%, which is 51% above median its 10-year median of 17.95 and 514.8% above the Asset Management industry median of 4.40. First Trust Enhanced Equityome Fund's overall GF Score™ is 61/100 with 3 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 Trust Enhanced Equityome Fund (FFA), the current ROA % is 27.05% 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 First Trust Enhanced Equityome Fund (FFA) Overvalued in 2026?
Based on GuruFocus' analysis, First Trust Enhanced Equityome Fund stock appears to be undervalued.
The current stock price of $23.21 is trading 1.9% below its estimated GF Value™ of $23.66.
GuruFocus considers First Trust Enhanced Equityome Fund to be Fairly Valued.
Key valuation signals for FFA:
ROA %: 27.05% (51% above median its 10-year median of 17.95)
GF Value™: $23.66 vs. price of $23.21 (1.9% below fair value)
Industry Position: 514.8% above the Asset Management median (#244 of 1633)
No single metric tells the full story. See the FFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Trust Enhanced Equity Income Fund is a diversified, closed-end management investment company. Its investment objective is to provide high level of current income and gains and, to a lesser extent, capital appreciation. The Fund pursues its investment objective by investing in a diversified portfolio of equity securities.
61GF Score
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