Annaly Capital ManagementFRA:AAYA -0.71%24 ROA % is 0.83% as of Mar. 2026, which is 38% below its 10-year median of 1.34. GuruFocus rates FRA:AAYA with a GF Score™ of 24/100. The stock has 8 warning signs investors should review. Among 938 REITs companies, Annaly Capital Management ranks worse than 64.93% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Annaly Capital Management's annualizedNet Income for the quarter that ended in Mar. 2026 was €978 Mil.
Annaly Capital Management's average Total Assets over the quarter that ended in Mar. 2026 was €117,823 Mil. Therefore, Annaly Capital Management's annualized ROA % for the quarter that ended in Mar. 2026 was 0.83%.
The historical rank and industry rank for Annaly Capital Management's ROA % or its related term are showing as below:
FRA:AAYA'
s ROA % Range Over the Past 10 Years
Min: -1.88 Med: 1.34 Max: 2.89
Current: 1.77
During the past 13 years, Annaly Capital Management's highest ROA % was 2.89%. The lowest was -1.88%. And the median was 1.34%.
FRA:AAYA's ROA % is ranked worse than 64.93% of 938
companies
in the REITs industry
Industry Median: 3.2
vs FRA:AAYA: 1.77
Annaly Capital Management (FRA:AAYA) 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.
* 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, Annaly Capital Management'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.
Annaly Capital Management ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Annaly Capital Management's ROA % distribution charts can be found below:
* The bar in red indicates where Annaly Capital Management'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.
Annaly Capital Management (FRA:AAYA) has a ROA % of 0.83% 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 Annaly Capital Management and its competitors. This is 38% below median its historical median of 1.34. According to the industry distribution chart, Annaly Capital Management ranks #609 out of 938 companies in the REITs industry, placing it in the top 64.9%.
Is Annaly Capital Management's ROA % too high?
Annaly Capital Management's current ROA % of 0.83% is 38% below median its 10-year median of 1.34. The REITs industry median ROA % is 3.20. Annaly Capital Management's value of 0.83% is 74.1% below this industry median. Based on the distribution chart, Annaly Capital Management ranks #609 out of 938 companies in the REITs industry, which is below the industry midpoint. Overall, Annaly Capital Management has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Annaly Capital Management's ROA % compare to AGNC and STWD?
According to the REITs industry distribution chart, Annaly Capital Management ranks #609 out of 938 companies for ROA %. This places Annaly Capital Management in the lower half of its industry. The industry median ROA % is 3.20. Annaly Capital Management's value of 0.83% is 74.1% below this benchmark. While the company's 10-year median is 1.34 vs. the industry median of 3.20, Annaly Capital Management 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 3.20, based on 938 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. Annaly Capital Management's current ROA % of 0.83% is 74.1% 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 Annaly Capital Management and its competitors. For the REITs industry, the median ROA % is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Annaly Capital Management's current ROA % is 0.83%, which is 38% below median its own 10-year median of 1.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Annaly Capital Management stock overvalued right now?
Annaly Capital Management (FRA:AAYA) has a current ROA % of 0.83%. The current ROA % is 0.83%, which is 38% below median its 10-year median of 1.34 and 74.1% below the REITs industry median of 3.20. Annaly Capital Management's overall GF Score™ is 24/100 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 Annaly Capital Management (FRA:AAYA), the current ROA % is 0.83% 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.
Annaly Capital Management Inc is an American mortgage real estate investment trust. Its business objective is to generate net income for distribution to its stockholders and optimize its returns through prudent management of its diversified investment strategies. The company's reportable operating segments are: the Agency segment, which invests in Agency mortgage-backed securities collateralized by residential mortgages; the Residential Credit segment, which invests in non-Agency residential whole loans and securitized products within the residential and commercial markets; the Mortgage Servicing Rights segment; and Corporate & Other. Maximum revenue for the company is generated from its Agency segment.
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