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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ares Commercial Real Estate's annualizedNet Income for the quarter that ended in Jun. 2026 was €15.22 Mil.
Ares Commercial Real Estate's average Total Assets over the quarter that ended in Jun. 2026 was €1,582.90 Mil. Therefore, Ares Commercial Real Estate's annualized ROA % for the quarter that ended in Jun. 2026 was 0.96%.
The historical rank and industry rank for Ares Commercial Real Estate's ROA % or its related term are showing as below:
FRA:41I'
s ROA % Range Over the Past 10 Years
Min: -1.74 Med: 1.56 Max: 2.93
Current: -0.27
During the past 13 years, Ares Commercial Real Estate's highest ROA % was 2.93%. The lowest was -1.74%. And the median was 1.56%.
FRA:41I's ROA % is ranked worse than 81.78% of 922
companies
in the REITs industry
Industry Median: 3.25
vs FRA:41I: -0.27
Ares Commercial Real Estate (FRA:41I) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
* 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 REIT - Mortgage subindustry, Ares Commercial Real Estate'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.
Ares Commercial Real Estate ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Ares Commercial Real Estate's ROA % distribution charts can be found below:
* The bar in red indicates where Ares Commercial Real Estate'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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Ares Commercial Real Estate (FRA:41I) has a ROA % of 0.96% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ares Commercial Real Estate and its competitors. This is 38% below median its historical median of 1.56. According to the industry distribution chart, Ares Commercial Real Estate ranks #754 out of 922 companies in the REITs industry, placing it in the top 81.8%.
Is Ares Commercial Real Estate's ROA % too high?
Ares Commercial Real Estate's current ROA % of 0.96% is 38% below median its 10-year median of 1.56. The REITs industry median ROA % is 3.25. Ares Commercial Real Estate's value of 0.96% is 70.5% below this industry median. Based on the distribution chart, Ares Commercial Real Estate ranks #754 out of 922 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Ares Commercial Real Estate has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ares Commercial Real Estate's ROA % compare to REFI and RC?
According to the REITs industry distribution chart, Ares Commercial Real Estate ranks #754 out of 922 companies for ROA %. This places Ares Commercial Real Estate in the lower half of its industry. The industry median ROA % is 3.25. Ares Commercial Real Estate's value of 0.96% is 70.5% below this benchmark. While the company's 10-year median is 1.56 vs. the industry median of 3.25, Ares Commercial Real Estate 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 REITs company?
The median ROA % among REITs companies is 3.25, based on 922 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. Ares Commercial Real Estate's current ROA % of 0.96% is 70.5% 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 Ares Commercial Real Estate and its competitors. For the REITs industry, the median ROA % is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Commercial Real Estate's current ROA % is 0.96%, which is 38% below median its own 10-year median of 1.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Commercial Real Estate stock overvalued right now?
Based on GuruFocus' analysis, Ares Commercial Real Estate (FRA:41I) is currently considered Possible Value Trap. The stock's GF Value™ is €9.98, compared to a current price of €4.06 — trading 59.3% below its estimated fair value. The current ROA % is 0.96%, which is 38% below median its 10-year median of 1.56 and 70.5% below the REITs industry median of 3.25. Ares Commercial Real Estate's overall GF Score™ is 43/100 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 Ares Commercial Real Estate (FRA:41I), the current ROA % is 0.96% as of Jun. 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 Ares Commercial Real Estate (FRA:41I) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Commercial Real Estate stock appears to be undervalued.
The current stock price of €4.06 is trading 59.3% below its estimated GF Value™ of €9.98.
GuruFocus considers Ares Commercial Real Estate to be Possible Value Trap.
Key valuation signals for FRA:41I:
ROA %: 0.96% (38% below median its 10-year median of 1.56)
GF Value™: €9.98 vs. price of €4.06 (59.3% below fair value)
Industry Position: 70.5% below the REITs median (#754 of 922)
No single metric tells the full story. See the FRA:41I stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Commercial Real Estate Corp is a specialty finance company and a real estate investment trust mainly engaged in originating and investing in commercial real estate (CRE) loans and related investments. It operates in one segment, namely originating and managing a diversified portfolio of CRE debt-related investments. The company recognizes the majority of its revenues in the form of interest income, which it receives from loans.
43GF Score
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ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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