Knowit ABFRA:KOW -0.43%66 ROA % is 2.00% as of Mar. 2026, which is 74% below its 10-year median of 7.58. GuruFocus rates FRA:KOW with a GF Score™ of 66/100 and a GF Value™ of €10.23 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,885 Software companies, Knowit AB ranks worse than 67.94% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Knowit AB's annualizedNet Income for the quarter that ended in Mar. 2026 was €11.2 Mil.
Knowit AB's average Total Assets over the quarter that ended in Mar. 2026 was €557.9 Mil. Therefore, Knowit AB's annualized ROA % for the quarter that ended in Mar. 2026 was 2.00%.
The historical rank and industry rank for Knowit AB's ROA % or its related term are showing as below:
FRA:KOW'
s ROA % Range Over the Past 10 Years
Min: -4.62 Med: 7.58 Max: 12
Current: -4.62
During the past 13 years, Knowit AB's highest ROA % was 12.00%. The lowest was -4.62%. And the median was 7.58%.
FRA:KOW's ROA % is ranked worse than 67.94% of 2885
companies
in the Software industry
Industry Median: 1.68
vs FRA:KOW: -4.62
Knowit AB (FRA:KOW) 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.
Knowit AB ROA % Related Terms
Knowit AB ROA % Historical Data
* Premium members only.
The historical data trend for Knowit 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, Knowit 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.
Knowit AB ROA % vs Software Industry
For the Software industry and Technology sector, Knowit AB's ROA % distribution charts can be found below:
* The bar in red indicates where Knowit 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.
Knowit AB (FRA:KOW) has a ROA % of 2.00% 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 Knowit AB and its competitors. This is 74% below median its historical median of 7.58. According to the industry distribution chart, Knowit AB ranks #1960 out of 2885 companies in the Software industry, placing it in the top 67.9%.
Is Knowit AB's ROA % too high?
Knowit AB's current ROA % of 2.00% is 74% below median its 10-year median of 7.58. The Software industry median ROA % is 1.68. Knowit AB's value of 2.00% is 19% above this industry median. Based on the distribution chart, Knowit AB ranks #1960 out of 2885 companies in the Software industry, which is below the industry midpoint. Overall, Knowit AB has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Knowit AB's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Knowit AB ranks #1960 out of 2885 companies for ROA %. This places Knowit AB in the lower half of its industry. The industry median ROA % is 1.68. Knowit AB's value of 2.00% is 19% above this benchmark. While the company's 10-year median is 7.58 vs. the industry median of 1.68, Knowit 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. Knowit AB's current ROA % of 2.00% is 19% 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 Knowit 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. Knowit AB's current ROA % is 2.00%, which is 74% below median its own 10-year median of 7.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knowit AB stock overvalued right now?
Based on GuruFocus' analysis, Knowit AB (FRA:KOW) is currently considered Possible Value Trap. The stock's GF Value™ is €10.23, compared to a current price of €6.90 — trading 32.6% below its estimated fair value. The current ROA % is 2.00%, which is 74% below median its 10-year median of 7.58 and 19% above the Software industry median of 1.68. Knowit AB's overall GF Score™ is 66/100 with 6 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 Knowit AB (FRA:KOW), the current ROA % is 2.00% 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 Knowit AB (FRA:KOW) Overvalued in 2026?
Based on GuruFocus' analysis, Knowit AB stock appears to be undervalued.
The current stock price of €6.90 is trading 32.6% below its estimated GF Value™ of €10.23.
GuruFocus considers Knowit AB to be Possible Value Trap.
Key valuation signals for FRA:KOW:
ROA %: 2.00% (74% below median its 10-year median of 7.58)
GF Value™: €10.23 vs. price of €6.90 (32.6% below fair value)
Industry Position: 19% above the Software median (#1960 of 2885)
No single metric tells the full story. See the FRA:KOW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knowit AB is a Nordic consultancy, operating three divisions: IT and system development; Customer experience technology and communications; Management consultancy. The company has about 2200 employees in 20 locations in Sweden, Norway, Denmark, Finland and Germany. Knowit provides services towards most industries, both public and private sector. Knowit AB (Publ) was founded in 1990 and is headquartered in Stockholm, Sweden.
66GF Score
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