Finance of AmericaFOA +4.48%48 ROA % is 0.23% as of Mar. 2026, which is 283% above its 10-year median of 0.06. GuruFocus rates FOA with a GF Score™ of 48/100 and a GF Value™ of $24.60 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 546 Credit Services companies, Finance of America ranks worse than 74.73% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Finance of America's annualizedNet Income for the quarter that ended in Mar. 2026 was $70.0 Mil.
Finance of America's average Total Assets over the quarter that ended in Mar. 2026 was $31,030.7 Mil. Therefore, Finance of America's annualized ROA % for the quarter that ended in Mar. 2026 was 0.23%.
The historical rank and industry rank for Finance of America's ROA % or its related term are showing as below:
FOA'
s ROA % Range Over the Past 10 Years
Min: -0.89 Med: 0.06 Max: 2.65
Current: 0.11
During the past 7 years, Finance of America's highest ROA % was 2.65%. The lowest was -0.89%. And the median was 0.06%.
FOA's ROA % is ranked worse than 74.73% of 546
companies
in the Credit Services industry
Industry Median: 1.93
vs FOA: 0.11
Finance of America (NYSE:FOA) 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.
Finance of America ROA % Related Terms
Finance of America ROA % Historical Data
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The historical data trend for Finance of America'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 Credit Services subindustry, Finance of America'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.
Finance of America ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Finance of America's ROA % distribution charts can be found below:
* The bar in red indicates where Finance of America'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.
Finance of America (FOA) has a ROA % of 0.23% 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 Finance of America and its competitors. This is 283% above median its historical median of 0.06. According to the industry distribution chart, Finance of America ranks #408 out of 546 companies in the Credit Services industry, placing it in the top 74.7%.
Is Finance of America's ROA % too high?
Finance of America's current ROA % of 0.23% is 283% above median its 10-year median of 0.06. The Credit Services industry median ROA % is 1.93. Finance of America's value of 0.23% is 88.1% below this industry median. Based on the distribution chart, Finance of America ranks #408 out of 546 companies in the Credit Services industry, which is below the industry midpoint. Overall, Finance of America has a GF Score™ of 48/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Finance of America's ROA % compare to ANTA and XYF?
According to the Credit Services industry distribution chart, Finance of America ranks #408 out of 546 companies for ROA %. This places Finance of America in the lower half of its industry. The industry median ROA % is 1.93. Finance of America's value of 0.23% is 88.1% below this benchmark. While the company's 10-year median is 0.06 vs. the industry median of 1.93, Finance of America 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 a Credit Services company?
The median ROA % among Credit Services companies is 1.93, based on 546 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. Finance of America's current ROA % of 0.23% is 88.1% 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 Finance of America and its competitors. For the Credit Services industry, the median ROA % is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Finance of America's current ROA % is 0.23%, which is 283% above median its own 10-year median of 0.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finance of America stock overvalued right now?
Based on GuruFocus' analysis, Finance of America (FOA) is currently considered Modestly Undervalued. The stock's GF Value™ is $24.60, compared to a current price of $21.80 — trading 11.4% below its estimated fair value. The current ROA % is 0.23%, which is 283% above median its 10-year median of 0.06 and 88.1% below the Credit Services industry median of 1.93. Finance of America's overall GF Score™ is 48/100 with 4 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 Finance of America (FOA), the current ROA % is 0.23% 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 Finance of America (FOA) Overvalued in 2026?
Based on GuruFocus' analysis, Finance of America stock appears to be undervalued.
The current stock price of $21.80 is trading 11.4% below its estimated GF Value™ of $24.60.
GuruFocus considers Finance of America to be Modestly Undervalued.
Key valuation signals for FOA:
ROA %: 0.23% (283% above median its 10-year median of 0.06)
GF Value™: $24.60 vs. price of $21.80 (11.4% below fair value)
Industry Position: 88.1% below the Credit Services median (#408 of 546)
No single metric tells the full story. See the FOA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Finance of America Companies Inc provides home equity-based financing solutions for modern retirement and offers capital markets and portfolio management capabilities to optimize loan distribution to investors. The Company operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment handles loan origination, including HECM and non-agency reverse mortgage loans, generating revenue from origination fees and initial gains, with loans transferred to the Portfolio Management segment. The Portfolio Management segment, which generates the majority of revenue, provides securitization, loan sales, risk management, and asset management services, and earns revenue from net interest income, fair value changes, and servicing-related income.
48GF Score
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