Gamma CommunicationsFRA:6GC -0.51%86 ROA % is 10.25% as of Dec. 2025, which is 35% below its 10-year median of 15.81. GuruFocus rates FRA:6GC with a GF Score™ of 86/100 and a GF Value™ of €17.76 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 367 Telecommunication Services companies, Gamma Communications ranks better than 90.46% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Gamma Communications's annualizedNet Income for the quarter that ended in Dec. 2025 was €74.3 Mil.
Gamma Communications's average Total Assets over the quarter that ended in Dec. 2025 was €724.7 Mil. Therefore, Gamma Communications's annualized ROA % for the quarter that ended in Dec. 2025 was 10.25%.
The historical rank and industry rank for Gamma Communications's ROA % or its related term are showing as below:
FRA:6GC'
s ROA % Range Over the Past 10 Years
Min: 10.95 Med: 15.81 Max: 22.92
Current: 10.95
During the past 13 years, Gamma Communications's highest ROA % was 22.92%. The lowest was 10.95%. And the median was 15.81%.
FRA:6GC's ROA % is ranked better than 90.46% of 367
companies
in the Telecommunication Services industry
Industry Median: 2.76
vs FRA:6GC: 10.95
Gamma Communications (FRA:6GC) 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.
* 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, Gamma Communications'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.
Gamma Communications ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Gamma Communications's ROA % distribution charts can be found below:
* The bar in red indicates where Gamma Communications'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.
Gamma Communications (FRA:6GC) has a ROA % of 10.25% 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 Gamma Communications and its competitors. This is 35% below median its historical median of 15.81. Over the past decade, Gamma Communications' ROA % has ranged from 10.95 to 22.92. According to the industry distribution chart, Gamma Communications ranks #35 out of 367 companies in the Telecommunication Services industry, placing it in the top 9.5%.
Is Gamma Communications' ROA % too high?
Gamma Communications' current ROA % of 10.25% is 35% below median its 10-year median of 15.81. Over the past 10 years, this metric has ranged from a low of 10.95 to a high of 22.92. The Telecommunication Services industry median ROA % is 2.76. Gamma Communications' value of 10.25% is 271.4% above this industry median. Based on the distribution chart, Gamma Communications ranks #35 out of 367 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Gamma Communications has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gamma Communications' ROA % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Gamma Communications ranks #35 out of 367 companies for ROA %. This places Gamma Communications in the top 10% of its industry — outperforming the majority of peers. The industry median ROA % is 2.76. Gamma Communications' value of 10.25% is 271.4% above this benchmark. Historically, Gamma Communications' own ROA % has ranged from 10.95 to 22.92 over the past decade. While the company's 10-year median is 15.81 vs. the industry median of 2.76, Gamma Communications 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 2.76, based on 367 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. Gamma Communications's current ROA % of 10.25% is 271.4% 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 Gamma Communications and its competitors. For the Telecommunication Services industry, the median ROA % is 2.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gamma Communications's current ROA % is 10.25%, which is 35% below median its own 10-year median of 15.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gamma Communications stock overvalued right now?
Based on GuruFocus' analysis, Gamma Communications (FRA:6GC) is currently considered Significantly Undervalued. The stock's GF Value™ is €17.76, compared to a current price of €9.80 — trading 44.8% below its estimated fair value. The current ROA % is 10.25%, which is 35% below median its 10-year median of 15.81 and 271.4% above the Telecommunication Services industry median of 2.76. Gamma Communications' overall GF Score™ is 86/100 with 3 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 Gamma Communications (FRA:6GC), the current ROA % is 10.25% 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 Gamma Communications (FRA:6GC) Overvalued in 2026?
Based on GuruFocus' analysis, Gamma Communications stock appears to be undervalued.
The current stock price of €9.80 is trading 44.8% below its estimated GF Value™ of €17.76.
GuruFocus considers Gamma Communications to be Significantly Undervalued.
Key valuation signals for FRA:6GC:
ROA %: 10.25% (35% below median its 10-year median of 15.81)
GF Value™: €17.76 vs. price of €9.80 (44.8% below fair value)
Industry Position: 271.4% above the Telecommunication Services median (#35 of 367)
No single metric tells the full story. See the FRA:6GC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gamma Communications PLC is a supplier of Unified Communications as a Service (UCaaS) in the United Kingdom and other markets, supplying communication solutions directly and via its network of trusted channel partners. The company offers various products across categories including Unified Communications, Voice Enablement, and Connectivity. The company also offers cybersecurity and managed enterprise solutions. Its operating segments are Gamma Business, Gamma Enterprise, Europe, and Central Functions. The majority of the company's revenue is generated from the Gamma Business segment which sells its products to smaller businesses in the UK. Geographically, the company generates a majority of its revenue from the United Kingdom and the rest from Europe.
86GF Score
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