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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
First Trust Mortgageome FundFMY -3.46%54 ROA % is 2.27% as of Apr. 2026, which is 3% below its 10-year median of 2.35. GuruFocus rates FMY with a GF Score™ of 54/100 and a GF Value™ of $11.71 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,619 Asset Management companies, First Trust Mortgageome Fund ranks better than 53.37% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. First Trust Mortgageome Fund's annualizedNet Income for the quarter that ended in Apr. 2026 was $1.34 Mil.
First Trust Mortgageome Fund's average Total Assets over the quarter that ended in Apr. 2026 was $58.80 Mil. Therefore, First Trust Mortgageome Fund's annualized ROA % for the quarter that ended in Apr. 2026 was 2.27%.
The historical rank and industry rank for First Trust Mortgageome Fund's ROA % or its related term are showing as below:
FMY'
s ROA % Range Over the Past 10 Years
Min: -8.76 Med: 2.35 Max: 13.94
Current: 4.99
During the past 9 years, First Trust Mortgageome Fund's highest ROA % was 13.94%. The lowest was -8.76%. And the median was 2.35%.
FMY's ROA % is ranked better than 53.37% of 1619
companies
in the Asset Management industry
Industry Median: 4.35
vs FMY: 4.99
First Trust Mortgageome Fund (NYSE:FMY) 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 (Apr. 2026) net income data. The Revenue data used here is two times the semi-annual (Apr. 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 Trust Mortgageome Fund ROA % Related Terms
First Trust Mortgageome 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 Mortgageome 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 Mortgageome Fund ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, First Trust Mortgageome Fund's ROA % distribution charts can be found below:
* The bar in red indicates where First Trust Mortgageome 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 (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
First Trust Mortgageome Fund (FMY) has a ROA % of 2.27% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on First Trust Mortgageome Fund and its competitors. This is near median its historical median of 2.35. According to the industry distribution chart, First Trust Mortgageome Fund ranks #755 out of 1619 companies in the Asset Management industry, placing it in the top 46.6%.
Is First Trust Mortgageome Fund's ROA % too high?
First Trust Mortgageome Fund's current ROA % of 2.27% is near median its 10-year median of 2.35. The Asset Management industry median ROA % is 4.35. First Trust Mortgageome Fund's value of 2.27% is 47.8% below this industry median. Based on the distribution chart, First Trust Mortgageome Fund ranks #755 out of 1619 companies in the Asset Management industry, which is above the industry midpoint. Overall, First Trust Mortgageome Fund has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Trust Mortgageome Fund's ROA % compare to OFS and SDEV?
According to the Asset Management industry distribution chart, First Trust Mortgageome Fund ranks #755 out of 1619 companies for ROA %. This puts First Trust Mortgageome Fund in the upper half of its industry. The industry median ROA % is 4.35. First Trust Mortgageome Fund's value of 2.27% is 47.8% below this benchmark. While the company's 10-year median is 2.35 vs. the industry median of 4.35, First Trust Mortgageome Fund 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 Asset Management company?
The median ROA % among Asset Management companies is 4.35, based on 1,619 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 Mortgageome Fund's current ROA % of 2.27% is 47.8% 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 First Trust Mortgageome Fund and its competitors. For the Asset Management industry, the median ROA % is 4.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Trust Mortgageome Fund's current ROA % is 2.27%, which is near median its own 10-year median of 2.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Trust Mortgageome Fund stock overvalued right now?
Based on GuruFocus' analysis, First Trust Mortgageome Fund (FMY) is currently considered Fairly Valued. The stock's GF Value™ is $11.71, compared to a current price of $11.43 — trading 2.4% below its estimated fair value. The current ROA % is 2.27%, which is near median its 10-year median of 2.35 and 47.8% below the Asset Management industry median of 4.35. First Trust Mortgageome Fund's overall GF Score™ is 54/100 with 5 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 Mortgageome Fund (FMY), the current ROA % is 2.27% as of Apr. 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 Trust Mortgageome Fund (FMY) Overvalued in 2026?
Based on GuruFocus' analysis, First Trust Mortgageome Fund stock appears to be undervalued.
The current stock price of $11.43 is trading 2.4% below its estimated GF Value™ of $11.71.
GuruFocus considers First Trust Mortgageome Fund to be Fairly Valued.
Key valuation signals for FMY:
ROA %: 2.27% (near median its 10-year median of 2.35)
GF Value™: $11.71 vs. price of $11.43 (2.4% below fair value)
Industry Position: 47.8% below the Asset Management median (#755 of 1619)
No single metric tells the full story. See the FMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Trust Mortgage Income Fund is a United States-based diversified, closed-end management investment company. The fund's primary investment objective is to seek a high level of current income. Its secondary investment objective is to preserve capital. The fund pursues its objectives by investing predominantly in mortgage-backed securities representing part ownership in a pool of either residential or commercial mortgage loans that, in the opinion of the Fund's investment advisor, offer an attractive combination of credit quality, yield, and maturity.
54GF Score
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