Papa John's InternationalFRA:PP1 -1.90%64 ROA % is 3.50% as of Mar. 2026, which is 59% below its 10-year median of 8.60. GuruFocus rates FRA:PP1 with a GF Score™ of 64/100 and a GF Value™ of €38.49 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 367 Restaurants companies, Papa John's International ranks better than 57.49% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Papa John's International's annualizedNet Income for the quarter that ended in Mar. 2026 was €25 Mil.
Papa John's International's average Total Assets over the quarter that ended in Mar. 2026 was €717 Mil. Therefore, Papa John's International's annualized ROA % for the quarter that ended in Mar. 2026 was 3.50%.
The historical rank and industry rank for Papa John's International's ROA % or its related term are showing as below:
FRA:PP1'
s ROA % Range Over the Past 10 Years
Min: 0.43 Med: 8.6 Max: 20.54
Current: 3.29
During the past 13 years, Papa John's International's highest ROA % was 20.54%. The lowest was 0.43%. And the median was 8.60%.
FRA:PP1's ROA % is ranked better than 57.49% of 367
companies
in the Restaurants industry
Industry Median: 2.15
vs FRA:PP1: 3.29
Papa John's International (FRA:PP1) 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 Restaurants subindustry, Papa John's International'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.
Papa John's International ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Papa John's International's ROA % distribution charts can be found below:
* The bar in red indicates where Papa John's International'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.
Papa John's International (FRA:PP1) has a ROA % of 3.50% 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 Papa John's International and its competitors. This is 59% below median its historical median of 8.60. Over the past decade, Papa John's International's ROA % has ranged from 0.43 to 20.54. According to the industry distribution chart, Papa John's International ranks #156 out of 367 companies in the Restaurants industry, placing it in the top 42.5%.
Is Papa John's International's ROA % too high?
Papa John's International's current ROA % of 3.50% is 59% below median its 10-year median of 8.60. Over the past 10 years, this metric has ranged from a low of 0.43 to a high of 20.54. The Restaurants industry median ROA % is 2.15. Papa John's International's value of 3.50% is 62.8% above this industry median. Based on the distribution chart, Papa John's International ranks #156 out of 367 companies in the Restaurants industry, which is above the industry midpoint. Overall, Papa John's International has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Papa John's International's ROA % compare to SG and BJRI?
According to the Restaurants industry distribution chart, Papa John's International ranks #156 out of 367 companies for ROA %. This puts Papa John's International in the upper half of its industry. The industry median ROA % is 2.15. Papa John's International's value of 3.50% is 62.8% above this benchmark. Historically, Papa John's International's own ROA % has ranged from 0.43 to 20.54 over the past decade. While the company's 10-year median is 8.60 vs. the industry median of 2.15, Papa John's International 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 Restaurants company?
The median ROA % among Restaurants companies is 2.15, based on 367 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. Papa John's International's current ROA % of 3.50% is 62.8% 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 Papa John's International and its competitors. For the Restaurants industry, the median ROA % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Papa John's International's current ROA % is 3.50%, which is 59% below median its own 10-year median of 8.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Papa John's International stock overvalued right now?
Based on GuruFocus' analysis, Papa John's International (FRA:PP1) is currently considered Modestly Undervalued. The stock's GF Value™ is €38.49, compared to a current price of €31.00 — trading 19.5% below its estimated fair value. The current ROA % is 3.50%, which is 59% below median its 10-year median of 8.60 and 62.8% above the Restaurants industry median of 2.15. Papa John's International's overall GF Score™ is 64/100 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 Papa John's International (FRA:PP1), the current ROA % is 3.50% 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 Papa John's International (FRA:PP1) Overvalued in 2026?
Based on GuruFocus' analysis, Papa John's International stock appears to be undervalued.
The current stock price of €31.00 is trading 19.5% below its estimated GF Value™ of €38.49.
GuruFocus considers Papa John's International to be Modestly Undervalued.
Key valuation signals for FRA:PP1:
ROA %: 3.50% (59% below median its 10-year median of 8.60)
GF Value™: €38.49 vs. price of €31.00 (19.5% below fair value)
Industry Position: 62.8% above the Restaurants median (#156 of 367)
No single metric tells the full story. See the FRA:PP1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Papa John's International Inc operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants. It has four defined reportable segments: Domestic Company-owned restaurants, North America franchising, North America commissaries, and International. The company derives maximum revenue from North America commissaries segment. The North America commissaries segment consists of the operations of its regional dough production and product distribution centers in the United States and Canada and derives its revenues principally from the sale and distribution of food and paper products to Domestic Company-owned and franchised restaurants in the United States and Canada.
64GF Score
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