ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. TMM Real Estate Development's annualizedNet Income for the quarter that ended in Dec. 2023 was €1.98 Mil.
TMM Real Estate Development's average Total Assets over the quarter that ended in Dec. 2023 was €18.05 Mil. Therefore, TMM Real Estate Development's annualized ROA % for the quarter that ended in Dec. 2023 was 10.97%.
The historical rank and industry rank for TMM Real Estate Development's ROA % or its related term are showing as below:
FRA:TR61's ROA % is not ranked *
in the Real Estate industry.
Industry Median: 1.7 * Ranked among companies with meaningful ROA % only.
TMM Real Estate Development (FRA:TR61) 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 one times the annual (Dec. 2023) net income data. The Revenue data used here is one times the annual (Dec. 2023) 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.
TMM Real Estate Development ROA % Competitor Comparison
For the Real Estate - Diversified subindustry, TMM Real Estate Development'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.
TMM Real Estate Development ROA % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, TMM Real Estate Development's ROA % distribution charts can be found below:
* The bar in red indicates where TMM Real Estate Development'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 one times the annual (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
TMM Real Estate Development (FRA:TR61) has a ROA % of 10.97% as of Dec. 2023. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on TMM Real Estate Development and its competitors.
Is TMM Real Estate Development's ROA % too high?
TMM Real Estate Development's current ROA % is 10.97%. The Real Estate industry median ROA % is 1.70. TMM Real Estate Development's value of 10.97% is 545.3% above this industry median. Overall, TMM Real Estate Development has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does TMM Real Estate Development's ROA % compare to competitors?
TMM Real Estate Development's ROA % of 10.97% can be compared against companies in the Real Estate industry. The industry median ROA % is 1.70. TMM Real Estate Development's value of 10.97% is 545.3% above this benchmark. 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 Real Estate company?
The median ROA % among Real Estate companies is 1.70, based on 1,804 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. TMM Real Estate Development's current ROA % of 10.97% is 545.3% 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 TMM Real Estate Development and its competitors. For the Real Estate industry, the median ROA % is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TMM Real Estate Development's current ROA % is 10.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TMM Real Estate Development stock overvalued right now?
TMM Real Estate Development (FRA:TR61) has a current ROA % of 10.97%. The current ROA % is 10.97% and 545.3% above the Real Estate industry median of 1.70. TMM Real Estate Development's overall GF Score™ is 39/100. 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 TMM Real Estate Development (FRA:TR61), the current ROA % is 10.97% as of Dec. 2023. 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.
TMM Real Estate Development PLC operates as a real estate development and construction company and develops the construction of residential complexes on a turnkey basis, which covers all complex construction and fine finishing works as well as post-construction utility services for the completed projects. It operates in the following segments: Investment Property; Property Development & Construction; Utility and Management Services; and Air Mobility Solutions. The Investment Property segment leases residential and commercial property owned by the group. The Property Development & Construction segment builds and sells residential and commercial property and renders construction services. The Air Mobility Solutions segment earns the majority of revenue.
39GF Score
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