ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Frequency Electronics's annualizedNet Income for the quarter that ended in Jan. 2026 was €5.34 Mil.
Frequency Electronics's average Total Assets over the quarter that ended in Jan. 2026 was €79.70 Mil. Therefore, Frequency Electronics's annualized ROA % for the quarter that ended in Jan. 2026 was 6.69%.
The historical rank and industry rank for Frequency Electronics's ROA % or its related term are showing as below:
FRA:98K'
s ROA % Range Over the Past 10 Years
Min: -24.15 Med: -3.53 Max: 26.77
Current: 7.83
During the past 13 years, Frequency Electronics's highest ROA % was 26.77%. The lowest was -24.15%. And the median was -3.53%.
FRA:98K's ROA % is ranked better than 81.79% of 2498
companies
in the Hardware industry
Industry Median: 2.27
vs FRA:98K: 7.83
Frequency Electronics (FRA:98K) 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 (Jan. 2026) net income data. The Revenue data used here is four times the quarterly (Jan. 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 Communication Equipment subindustry, Frequency Electronics'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.
Frequency Electronics ROA % vs Hardware Industry
For the Hardware industry and Technology sector, Frequency Electronics's ROA % distribution charts can be found below:
* The bar in red indicates where Frequency Electronics'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 (Jan. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Frequency Electronics (FRA:98K) has a ROA % of 6.69% as of Jan. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Frequency Electronics and its competitors. According to the industry distribution chart, Frequency Electronics ranks #455 out of 2498 companies in the Hardware industry, placing it in the top 18.2%.
Is Frequency Electronics' ROA % too high?
Frequency Electronics' current ROA % is 6.69%. The Hardware industry median ROA % is 2.27. Frequency Electronics' value of 6.69% is 194.7% above this industry median. Based on the distribution chart, Frequency Electronics ranks #455 out of 2498 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Frequency Electronics has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frequency Electronics' ROA % compare to NTGR and CLFD?
According to the Hardware industry distribution chart, Frequency Electronics ranks #455 out of 2498 companies for ROA %. This places Frequency Electronics in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 2.27. Frequency Electronics' value of 6.69% is 194.7% above this benchmark. 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 Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,498 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. Frequency Electronics's current ROA % of 6.69% is 194.7% 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 Frequency Electronics and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frequency Electronics's current ROA % is 6.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frequency Electronics stock overvalued right now?
Based on GuruFocus' analysis, Frequency Electronics (FRA:98K) is currently considered Significantly Overvalued. The stock's GF Value™ is €12.40, compared to a current price of €51.60 — trading 316.1% above its estimated fair value. The current ROA % is 6.69% and 194.7% above the Hardware industry median of 2.27. Frequency Electronics' overall GF Score™ is 62/100 with 5 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 Frequency Electronics (FRA:98K), the current ROA % is 6.69% as of Jan. 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 Frequency Electronics (FRA:98K) Overvalued in 2026?
Based on GuruFocus' analysis, Frequency Electronics stock appears to be overvalued.
The current stock price of €51.60 is trading 316.1% above its estimated GF Value™ of €12.40.
GuruFocus considers Frequency Electronics to be Significantly Overvalued.
Key valuation signals for FRA:98K:
ROA %: 6.69%
GF Value™: €12.40 vs. price of €51.60 (316.1% above fair value)
Industry Position: 194.7% above the Hardware median (#455 of 2498)
No single metric tells the full story. See the FRA:98K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frequency Electronics Inc is engaged in the design, development, and manufacture of high-precision timing, and frequency control products for space, air, sea, and terrestrial applications. The company has FEI-NY and FEI-Zyfer reportable segments. It derives the majority of its revenues from the FEI-NY segment. FEI-NY segment operations consist principally of precision time and frequency control products used in three principal markets namely communication satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military.
62GF Score
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