ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. German American Bancorp's annualizedNet Income for the quarter that ended in Mar. 2026 was €114.7 Mil.
German American Bancorp's average Total Assets over the quarter that ended in Mar. 2026 was €7,207.4 Mil. Therefore, German American Bancorp's annualized ROA % for the quarter that ended in Mar. 2026 was 1.59%.
The historical rank and industry rank for German American Bancorp's ROA % or its related term are showing as below:
FRA:GAB'
s ROA % Range Over the Past 10 Years
Min: 1.32 Med: 1.37 Max: 1.62
Current: 1.62
During the past 13 years, German American Bancorp's highest ROA % was 1.62%. The lowest was 1.32%. And the median was 1.37%.
FRA:GAB's ROA % is ranked better than 81.1% of 1529
companies
in the Banks industry
Industry Median: 0.98
vs FRA:GAB: 1.62
German American Bancorp (FRA:GAB) 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 Banks - Regional subindustry, German American Bancorp'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.
German American Bancorp ROA % vs Banks Industry
For the Banks industry and Financial Services sector, German American Bancorp's ROA % distribution charts can be found below:
* The bar in red indicates where German American Bancorp'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.
German American Bancorp (FRA:GAB) has a ROA % of 1.59% 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 German American Bancorp and its competitors. This is 16% above median its historical median of 1.37. Over the past decade, German American Bancorp's ROA % has ranged from 1.32 to 1.62. According to the industry distribution chart, German American Bancorp ranks #289 out of 1529 companies in the Banks industry, placing it in the top 18.9%.
Is German American Bancorp's ROA % too high?
German American Bancorp's current ROA % of 1.59% is 16% above median its 10-year median of 1.37. Over the past 10 years, this metric has ranged from a low of 1.32 to a high of 1.62. The Banks industry median ROA % is 0.98. German American Bancorp's value of 1.59% is 62.2% above this industry median. Based on the distribution chart, German American Bancorp ranks #289 out of 1529 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, German American Bancorp has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does German American Bancorp's ROA % compare to DCOM and FSUN?
According to the Banks industry distribution chart, German American Bancorp ranks #289 out of 1529 companies for ROA %. This places German American Bancorp in the top 19% of its industry — outperforming the majority of peers. The industry median ROA % is 0.98. German American Bancorp's value of 1.59% is 62.2% above this benchmark. Historically, German American Bancorp's own ROA % has ranged from 1.32 to 1.62 over the past decade. While the company's 10-year median is 1.37 vs. the industry median of 0.98, German American Bancorp 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 Banks company?
The median ROA % among Banks companies is 0.98, based on 1,529 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. German American Bancorp's current ROA % of 1.59% is 62.2% 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 German American Bancorp and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. German American Bancorp's current ROA % is 1.59%, which is 16% above median its own 10-year median of 1.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is German American Bancorp stock overvalued right now?
Based on GuruFocus' analysis, German American Bancorp (FRA:GAB) is currently considered Fairly Valued. The stock's GF Value™ is €36.68, compared to a current price of €39.40 — trading 7.4% above its estimated fair value. The current ROA % is 1.59%, which is 16% above median its 10-year median of 1.37 and 62.2% above the Banks industry median of 0.98. German American Bancorp's overall GF Score™ is 60/100 with 4 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 German American Bancorp (FRA:GAB), the current ROA % is 1.59% 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 German American Bancorp (FRA:GAB) Overvalued in 2026?
Based on GuruFocus' analysis, German American Bancorp stock appears to be overvalued.
The current stock price of €39.40 is trading 7.4% above its estimated GF Value™ of €36.68.
GuruFocus considers German American Bancorp to be Fairly Valued.
Key valuation signals for FRA:GAB:
ROA %: 1.59% (16% above median its 10-year median of 1.37)
GF Value™: €36.68 vs. price of €39.40 (7.4% above fair value)
Industry Position: 62.2% above the Banks median (#289 of 1529)
No single metric tells the full story. See the FRA:GAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
German American Bancorp Inc is a bank holding company. The lines of business include the core banking segment and the wealth management segment. The core banking segment involves attracting deposits from the general public and using those funds to originate consumer, commercial, and agricultural real estate, and residential mortgage loans. These core banking activities also include the sale of residential mortgage loans in the secondary market. Wealth management services, which involve providing trust, investment advisory, brokerage, and retirement planning services to customers. The company generates the majority of its revenue from the core banking segment.
60GF Score
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