Freehold RoyaltiesFRA:1FH +0.34%76 ROA % is 10.25% as of Mar. 2026, which is 158% above its 10-year median of 3.98. GuruFocus rates FRA:1FH with a GF Score™ of 76/100 and a GF Value™ of €7.81 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,030 Oil & Gas companies, Freehold Royalties ranks better than 75.92% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Freehold Royalties's annualizedNet Income for the quarter that ended in Mar. 2026 was €88.6 Mil.
Freehold Royalties's average Total Assets over the quarter that ended in Mar. 2026 was €863.5 Mil. Therefore, Freehold Royalties's annualized ROA % for the quarter that ended in Mar. 2026 was 10.25%.
The historical rank and industry rank for Freehold Royalties's ROA % or its related term are showing as below:
FRA:1FH'
s ROA % Range Over the Past 10 Years
Min: -1.67 Med: 3.98 Max: 18.33
Current: 6.36
During the past 13 years, Freehold Royalties's highest ROA % was 18.33%. The lowest was -1.67%. And the median was 3.98%.
FRA:1FH's ROA % is ranked better than 75.92% of 1030
companies
in the Oil & Gas industry
Industry Median: 1.895
vs FRA:1FH: 6.36
Freehold Royalties (FRA:1FH) 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.
Freehold Royalties ROA % Related Terms
Freehold Royalties ROA % Historical Data
* Premium members only.
The historical data trend for Freehold Royalties'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 Oil & Gas E&P subindustry, Freehold Royalties'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.
Freehold Royalties ROA % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Freehold Royalties's ROA % distribution charts can be found below:
* The bar in red indicates where Freehold Royalties'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.
Freehold Royalties (FRA:1FH) has a ROA % of 10.25% 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 Freehold Royalties and its competitors. This is 158% above median its historical median of 3.98. According to the industry distribution chart, Freehold Royalties ranks #248 out of 1030 companies in the Oil & Gas industry, placing it in the top 24.1%.
Is Freehold Royalties' ROA % too high?
Freehold Royalties' current ROA % of 10.25% is 158% above median its 10-year median of 3.98. The Oil & Gas industry median ROA % is 1.90. Freehold Royalties' value of 10.25% is 440.9% above this industry median. Based on the distribution chart, Freehold Royalties ranks #248 out of 1030 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Freehold Royalties has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Freehold Royalties' ROA % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Freehold Royalties ranks #248 out of 1030 companies for ROA %. This places Freehold Royalties in the top 24% of its industry — outperforming the majority of peers. The industry median ROA % is 1.90. Freehold Royalties' value of 10.25% is 440.9% above this benchmark. While the company's 10-year median is 3.98 vs. the industry median of 1.90, Freehold Royalties 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 Oil & Gas company?
The median ROA % among Oil & Gas companies is 1.90, based on 1,030 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. Freehold Royalties's current ROA % of 10.25% is 440.9% 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 Freehold Royalties and its competitors. For the Oil & Gas industry, the median ROA % is 1.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freehold Royalties's current ROA % is 10.25%, which is 158% above median its own 10-year median of 3.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freehold Royalties stock overvalued right now?
Based on GuruFocus' analysis, Freehold Royalties (FRA:1FH) is currently considered Modestly Overvalued. The stock's GF Value™ is €7.81, compared to a current price of €10.00 — trading 28% above its estimated fair value. The current ROA % is 10.25%, which is 158% above median its 10-year median of 3.98 and 440.9% above the Oil & Gas industry median of 1.90. Freehold Royalties' overall GF Score™ is 76/100 with 8 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 Freehold Royalties (FRA:1FH), the current ROA % is 10.25% 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 Freehold Royalties (FRA:1FH) Overvalued in 2026?
Based on GuruFocus' analysis, Freehold Royalties stock appears to be overvalued.
The current stock price of €10.00 is trading 28% above its estimated GF Value™ of €7.81.
GuruFocus considers Freehold Royalties to be Modestly Overvalued.
Key valuation signals for FRA:1FH:
ROA %: 10.25% (158% above median its 10-year median of 3.98)
GF Value™: €7.81 vs. price of €10.00 (28% above fair value)
Industry Position: 440.9% above the Oil & Gas median (#248 of 1030)
No single metric tells the full story. See the FRA:1FH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Freehold Royalties Ltd is in acquiring and managing Oil and Gas royalties. It operates in two segments: Canada, which includes exploration and evaluation assets and the petroleum and natural gas interests in Western Canada; and the United States, which includes petroleum and natural gas interests held in the Permian (Midland and Delaware), Eagle Ford, Haynesville, and Bakken basins located in the states of Texas, New Mexico, and North Dakota. The maximum revenue is generated from the Canada Segment.
76GF Score
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