Telstra GroupFRA:5KB 80 ROA % is 5.03% as of Dec. 2025, which is 9% above its 10-year median of 4.63. GuruFocus rates FRA:5KB with a GF Score™ of 80/100 and a GF Value™ of €13.10. The stock has 6 warning signs investors should review. Among 372 Telecommunication Services companies, Telstra Group ranks better than 66.4% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Telstra Group's annualizedNet Income for the quarter that ended in Dec. 2025 was €1,276 Mil.
Telstra Group's average Total Assets over the quarter that ended in Dec. 2025 was €25,356 Mil. Therefore, Telstra Group's annualized ROA % for the quarter that ended in Dec. 2025 was 5.03%.
The historical rank and industry rank for Telstra Group's ROA % or its related term are showing as below:
FRA:5KB'
s ROA % Range Over the Past 10 Years
Min: 3.58 Med: 4.63 Max: 13.81
Current: 5.03
During the past 13 years, Telstra Group's highest ROA % was 13.81%. The lowest was 3.58%. And the median was 4.63%.
FRA:5KB's ROA % is ranked better than 66.4% of 372
companies
in the Telecommunication Services industry
Industry Median: 2.745
vs FRA:5KB: 5.03
Telstra Group (FRA:5KB) 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.
Telstra Group ROA % Related Terms
Telstra Group ROA % Historical Data
* Premium members only.
The historical data trend for Telstra Group'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 Telecom Services subindustry, Telstra Group'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.
Telstra Group ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's ROA % distribution charts can be found below:
* The bar in red indicates where Telstra Group'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.
Telstra Group (FRA:5KB) has a ROA % of 5.03% 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 Telstra Group and its competitors. This is near median its historical median of 4.63. Over the past decade, Telstra Group's ROA % has ranged from 3.58 to 13.81. According to the industry distribution chart, Telstra Group ranks #125 out of 372 companies in the Telecommunication Services industry, placing it in the top 33.6%.
Is Telstra Group's ROA % too high?
Telstra Group's current ROA % of 5.03% is near median its 10-year median of 4.63. Over the past 10 years, this metric has ranged from a low of 3.58 to a high of 13.81. The Telecommunication Services industry median ROA % is 2.75. Telstra Group's value of 5.03% is 83.2% above this industry median. Based on the distribution chart, Telstra Group ranks #125 out of 372 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telstra Group has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's ROA % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #125 out of 372 companies for ROA %. This puts Telstra Group in the upper half of its industry. The industry median ROA % is 2.75. Telstra Group's value of 5.03% is 83.2% above this benchmark. Historically, Telstra Group's own ROA % has ranged from 3.58 to 13.81 over the past decade. While the company's 10-year median is 4.63 vs. the industry median of 2.75, Telstra Group 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 a Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.75, based on 372 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. Telstra Group's current ROA % of 5.03% is 83.2% 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 Telstra Group and its competitors. For the Telecommunication Services industry, the median ROA % is 2.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telstra Group's current ROA % is 5.03%, which is near median its own 10-year median of 4.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telstra Group stock overvalued right now?
Telstra Group (FRA:5KB) has a current ROA % of 5.03%. The stock's GF Value™ is €13.10, compared to a current price of €15.10 — trading 15.3% above its estimated fair value. The current ROA % is 5.03%, which is near median its 10-year median of 4.63 and 83.2% above the Telecommunication Services industry median of 2.75. Telstra Group's overall GF Score™ is 80/100 with 6 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 Telstra Group (FRA:5KB), the current ROA % is 5.03% 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 Telstra Group (FRA:5KB) Overvalued in 2026?
Based on GuruFocus' analysis, Telstra Group stock appears to be overvalued.
The current stock price of €15.10 is trading 15.3% above its estimated GF Value™ of €13.10.
Key valuation signals for FRA:5KB:
ROA %: 5.03% (near median its 10-year median of 4.63)
GF Value™: €13.10 vs. price of €15.10 (15.3% above fair value)
Industry Position: 83.2% above the Telecommunication Services median (#125 of 372)
No single metric tells the full story. See the FRA:5KB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telstra is Australia's largest telecommunications company, with dominant market shares in voice, mobile, enterprise telecom, and fixed-line broadband resale via the national broadband network. Telstra provides most of its services via its infrastructure assets, such as a fixed-line network (data centers, exchanges, poles, ducts, pits and pipes, fiber network), a mobile network, and mobile towers. Its customers span retail, corporate, government, wholesale, and overseas segments. Telstra also provides the government-owned, last-mile fixed-line National Broadband Network with long-term access to its infrastructure, in return for recurring payments. Finally, Telstra operates a leading telecom operation in Papua New Guinea and the surrounding South-Pacific countries.
80GF Score
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