ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ecotel Communication AG's annualizedNet Income for the quarter that ended in Mar. 2026 was €1.4 Mil.
Ecotel Communication AG's average Total Assets over the quarter that ended in Mar. 2026 was €54.4 Mil. Therefore, Ecotel Communication AG's annualized ROA % for the quarter that ended in Mar. 2026 was 2.61%.
The historical rank and industry rank for Ecotel Communication AG's ROA % or its related term are showing as below:
FRA:E4C'
s ROA % Range Over the Past 10 Years
Min: -0.33 Med: 1.82 Max: 79.69
Current: 0.19
During the past 13 years, Ecotel Communication AG's highest ROA % was 79.69%. The lowest was -0.33%. And the median was 1.82%.
FRA:E4C's ROA % is ranked worse than 69.84% of 368
companies
in the Telecommunication Services industry
Industry Median: 2.775
vs FRA:E4C: 0.19
Ecotel Communication AG (FRA:E4C) 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 Telecom Services subindustry, Ecotel Communication AG'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.
Ecotel Communication AG ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Ecotel Communication AG's ROA % distribution charts can be found below:
* The bar in red indicates where Ecotel Communication AG'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.
Ecotel Communication AG (FRA:E4C) has a ROA % of 2.61% 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 Ecotel Communication AG and its competitors. This is 43% above median its historical median of 1.82. According to the industry distribution chart, Ecotel Communication AG ranks #257 out of 368 companies in the Telecommunication Services industry, placing it in the top 69.8%.
Is Ecotel Communication AG's ROA % too high?
Ecotel Communication AG's current ROA % of 2.61% is 43% above median its 10-year median of 1.82. The Telecommunication Services industry median ROA % is 2.78. Ecotel Communication AG's value of 2.61% is 5.9% below this industry median. Based on the distribution chart, Ecotel Communication AG ranks #257 out of 368 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Ecotel Communication AG has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Ecotel Communication AG's ROA % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Ecotel Communication AG ranks #257 out of 368 companies for ROA %. This places Ecotel Communication AG in the lower half of its industry. The industry median ROA % is 2.78. Ecotel Communication AG's value of 2.61% is 5.9% below this benchmark. While the company's 10-year median is 1.82 vs. the industry median of 2.78, Ecotel Communication AG 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 Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.78, based on 368 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. Ecotel Communication AG's current ROA % of 2.61% is 5.9% 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 Ecotel Communication AG and its competitors. For the Telecommunication Services industry, the median ROA % is 2.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ecotel Communication AG's current ROA % is 2.61%, which is 43% above median its own 10-year median of 1.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ecotel Communication AG stock overvalued right now?
Ecotel Communication AG (FRA:E4C) has a current ROA % of 2.61%. The stock's GF Value™ is €13.94, compared to a current price of €6.85 — trading 50.9% below its estimated fair value. The current ROA % is 2.61%, which is 43% above median its 10-year median of 1.82 and 5.9% below the Telecommunication Services industry median of 2.78. Ecotel Communication AG's overall GF Score™ is 56/100 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 Ecotel Communication AG (FRA:E4C), the current ROA % is 2.61% 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.
Is Ecotel Communication AG (FRA:E4C) Overvalued in 2026?
Based on GuruFocus' analysis, Ecotel Communication AG stock appears to be undervalued.
The current stock price of €6.85 is trading 50.9% below its estimated GF Value™ of €13.94.
Key valuation signals for FRA:E4C:
ROA %: 2.61% (43% above median its 10-year median of 1.82)
GF Value™: €13.94 vs. price of €6.85 (50.9% below fair value)
Industry Position: 5.9% below the Telecommunication Services median (#257 of 368)
No single metric tells the full story. See the FRA:E4C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ecotel Communication AG is a telecommunication company operating in Germany that provides a solution to customers involved in the IT and telecommunication industry. The company operates under business segments that is Ecotel Business customers, Ecotel Wholesale, and Easybell, Majority of the firm's revenue comes from Ecotel Business customers which offers business customers throughout Germany an integrated product portfolio of voice and data services (ICT solutions). The firm's sales are mostly generated in Germany.
56GF Score
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