Prevas ABFRA:J89 -1.05%60 ROA % is 5.96% as of Mar. 2026, which is 24% below its 10-year median of 7.80. GuruFocus rates FRA:J89 with a GF Score™ of 60/100 and a GF Value™ of €10.05 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,885 Software companies, Prevas AB ranks better than 65.44% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Prevas AB's annualizedNet Income for the quarter that ended in Mar. 2026 was €7.5 Mil.
Prevas AB's average Total Assets over the quarter that ended in Mar. 2026 was €126.0 Mil. Therefore, Prevas AB's annualized ROA % for the quarter that ended in Mar. 2026 was 5.96%.
The historical rank and industry rank for Prevas AB's ROA % or its related term are showing as below:
FRA:J89'
s ROA % Range Over the Past 10 Years
Min: -2.04 Med: 7.8 Max: 16.09
Current: 4.97
During the past 13 years, Prevas AB's highest ROA % was 16.09%. The lowest was -2.04%. And the median was 7.80%.
FRA:J89's ROA % is ranked better than 65.44% of 2885
companies
in the Software industry
Industry Median: 1.68
vs FRA:J89: 4.97
Prevas AB (FRA:J89) 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.
Prevas AB ROA % Related Terms
Prevas AB ROA % Historical Data
* Premium members only.
The historical data trend for Prevas AB's ROA % can be seen below:
* 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 Information Technology Services subindustry, Prevas AB'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.
Prevas AB ROA % vs Software Industry
For the Software industry and Technology sector, Prevas AB's ROA % distribution charts can be found below:
* The bar in red indicates where Prevas AB'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.
Prevas AB (FRA:J89) has a ROA % of 5.96% 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 Prevas AB and its competitors. This is 24% below median its historical median of 7.80. According to the industry distribution chart, Prevas AB ranks #997 out of 2885 companies in the Software industry, placing it in the top 34.6%.
Is Prevas AB's ROA % too high?
Prevas AB's current ROA % of 5.96% is 24% below median its 10-year median of 7.80. The Software industry median ROA % is 1.68. Prevas AB's value of 5.96% is 254.8% above this industry median. Based on the distribution chart, Prevas AB ranks #997 out of 2885 companies in the Software industry, which is above the industry midpoint. Overall, Prevas AB has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Prevas AB's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Prevas AB ranks #997 out of 2885 companies for ROA %. This puts Prevas AB in the upper half of its industry. The industry median ROA % is 1.68. Prevas AB's value of 5.96% is 254.8% above this benchmark. While the company's 10-year median is 7.80 vs. the industry median of 1.68, Prevas AB 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 Software company?
The median ROA % among Software companies is 1.68, based on 2,885 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. Prevas AB's current ROA % of 5.96% is 254.8% 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 Prevas AB and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prevas AB's current ROA % is 5.96%, which is 24% below median its own 10-year median of 7.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prevas AB stock overvalued right now?
Based on GuruFocus' analysis, Prevas AB (FRA:J89) is currently considered Significantly Undervalued. The stock's GF Value™ is €10.05, compared to a current price of €6.60 — trading 34.3% below its estimated fair value. The current ROA % is 5.96%, which is 24% below median its 10-year median of 7.80 and 254.8% above the Software industry median of 1.68. Prevas AB's overall GF Score™ is 60/100 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 Prevas AB (FRA:J89), the current ROA % is 5.96% 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 Prevas AB (FRA:J89) Overvalued in 2026?
Based on GuruFocus' analysis, Prevas AB stock appears to be undervalued.
The current stock price of €6.60 is trading 34.3% below its estimated GF Value™ of €10.05.
GuruFocus considers Prevas AB to be Significantly Undervalued.
Key valuation signals for FRA:J89:
ROA %: 5.96% (24% below median its 10-year median of 7.80)
GF Value™: €10.05 vs. price of €6.60 (34.3% below fair value)
Industry Position: 254.8% above the Software median (#997 of 2885)
No single metric tells the full story. See the FRA:J89 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prevas AB is a Sweden-based information technology (IT) company that offers solutions, services, and products to customers who develop products with high IT content and need to streamline and automate their operations. The company's products are segmented as automotive, products and units, steel and minerals, defense, energy, life science, manufacturing, engineering, and telecom industries. The company has two geographical segments, namely Sweden, Finland, Denmark, and Other. It derives maximum revenue from Sweden.
60GF Score
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