GigaCloud TechnologyFRA:K71 +0.14%65 ROA % is 12.62% as of Mar. 2026, which is 10% below its 10-year median of 14.00. GuruFocus rates FRA:K71 with a GF Score™ of 65/100 and a GF Value™ of €31.66 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,885 Software companies, GigaCloud Technology ranks better than 88.87% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. GigaCloud Technology's annualizedNet Income for the quarter that ended in Mar. 2026 was €132 Mil.
GigaCloud Technology's average Total Assets over the quarter that ended in Mar. 2026 was €1,046 Mil. Therefore, GigaCloud Technology's annualized ROA % for the quarter that ended in Mar. 2026 was 12.62%.
The historical rank and industry rank for GigaCloud Technology's ROA % or its related term are showing as below:
FRA:K71'
s ROA % Range Over the Past 10 Years
Min: 7.92 Med: 14 Max: 27.07
Current: 12.94
During the past 7 years, GigaCloud Technology's highest ROA % was 27.07%. The lowest was 7.92%. And the median was 14.00%.
FRA:K71's ROA % is ranked better than 88.87% of 2885
companies
in the Software industry
Industry Median: 1.68
vs FRA:K71: 12.94
GigaCloud Technology (FRA:K71) 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 Software - Infrastructure subindustry, GigaCloud Technology'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.
GigaCloud Technology ROA % vs Software Industry
For the Software industry and Technology sector, GigaCloud Technology's ROA % distribution charts can be found below:
* The bar in red indicates where GigaCloud Technology'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.
GigaCloud Technology (FRA:K71) has a ROA % of 12.62% 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 GigaCloud Technology and its competitors. This is 10% below median its historical median of 14.00. Over the past decade, GigaCloud Technology's ROA % has ranged from 7.92 to 27.07. According to the industry distribution chart, GigaCloud Technology ranks #321 out of 2885 companies in the Software industry, placing it in the top 11.1%.
Is GigaCloud Technology's ROA % too high?
GigaCloud Technology's current ROA % of 12.62% is 10% below median its 10-year median of 14.00. Over the past 10 years, this metric has ranged from a low of 7.92 to a high of 27.07. The Software industry median ROA % is 1.68. GigaCloud Technology's value of 12.62% is 651.2% above this industry median. Based on the distribution chart, GigaCloud Technology ranks #321 out of 2885 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, GigaCloud Technology has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GigaCloud Technology's ROA % compare to TUYA and RXT?
According to the Software industry distribution chart, GigaCloud Technology ranks #321 out of 2885 companies for ROA %. This places GigaCloud Technology in the top 11% of its industry — outperforming the majority of peers. The industry median ROA % is 1.68. GigaCloud Technology's value of 12.62% is 651.2% above this benchmark. Historically, GigaCloud Technology's own ROA % has ranged from 7.92 to 27.07 over the past decade. While the company's 10-year median is 14.00 vs. the industry median of 1.68, GigaCloud Technology 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. GigaCloud Technology's current ROA % of 12.62% is 651.2% 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 GigaCloud Technology 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. GigaCloud Technology's current ROA % is 12.62%, which is 10% below median its own 10-year median of 14.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GigaCloud Technology stock overvalued right now?
Based on GuruFocus' analysis, GigaCloud Technology (FRA:K71) is currently considered Modestly Undervalued. The stock's GF Value™ is €31.66, compared to a current price of €27.94 — trading 11.7% below its estimated fair value. The current ROA % is 12.62%, which is 10% below median its 10-year median of 14.00 and 651.2% above the Software industry median of 1.68. GigaCloud Technology's overall GF Score™ is 65/100 with 2 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 GigaCloud Technology (FRA:K71), the current ROA % is 12.62% 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 GigaCloud Technology (FRA:K71) Overvalued in 2026?
Based on GuruFocus' analysis, GigaCloud Technology stock appears to be undervalued.
The current stock price of €27.94 is trading 11.7% below its estimated GF Value™ of €31.66.
GuruFocus considers GigaCloud Technology to be Modestly Undervalued.
Key valuation signals for FRA:K71:
ROA %: 12.62% (10% below median its 10-year median of 14.00)
GF Value™: €31.66 vs. price of €27.94 (11.7% below fair value)
Industry Position: 651.2% above the Software median (#321 of 2885)
No single metric tells the full story. See the FRA:K71 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GigaCloud Technology Inc provides end-to-end and B2B e-commerce solutions for large parcel merchandise. Its B2B e-commerce platform, which is referred to as the GigaCloud Marketplace, integrates everything from discovery, payments, and logistics tools into one easy-to-use platform. It offers online and offline integrated cross-border transaction and delivery services for furniture and large merchandise. Its marketplace seamlessly connects manufacturers in Asia with resellers in the U.S., Asia, and Europe to execute cross-border transactions with confidence, speed, and efficiency. It offers a truly comprehensive solution that transports products from the manufacturer's warehouse to end customers, all at one fixed price. It earns the majority of its revenue from the United States.
65GF Score
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