ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Vanda Pharmaceuticals's annualizedNet Income for the quarter that ended in Mar. 2026 was €-168.0 Mil.
Vanda Pharmaceuticals's average Total Assets over the quarter that ended in Mar. 2026 was €396.3 Mil. Therefore, Vanda Pharmaceuticals's annualized ROA % for the quarter that ended in Mar. 2026 was -42.40%.
The historical rank and industry rank for Vanda Pharmaceuticals's ROA % or its related term are showing as below:
FRA:VM4'
s ROA % Range Over the Past 10 Years
Min: -43.08 Med: 0.71 Max: 28.33
Current: -43.08
During the past 13 years, Vanda Pharmaceuticals's highest ROA % was 28.33%. The lowest was -43.08%. And the median was 0.71%.
FRA:VM4's ROA % is ranked worse than 57.98% of 1423
companies
in the Biotechnology industry
Industry Median: -32.9
vs FRA:VM4: -43.08
Vanda Pharmaceuticals (FRA:VM4) 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 Biotechnology subindustry, Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals ROA % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vanda Pharmaceuticals's ROA % distribution charts can be found below:
* The bar in red indicates where Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals (FRA:VM4) has a ROA % of -42.40% 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 Vanda Pharmaceuticals and its competitors. According to the industry distribution chart, Vanda Pharmaceuticals ranks #825 out of 1423 companies in the Biotechnology industry, placing it in the top 58%.
Is Vanda Pharmaceuticals' ROA % too high?
Vanda Pharmaceuticals' current ROA % is -42.40%. Based on the distribution chart, Vanda Pharmaceuticals ranks #825 out of 1423 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Vanda Pharmaceuticals has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vanda Pharmaceuticals' ROA % compare to FBRX and ARTV?
According to the Biotechnology industry distribution chart, Vanda Pharmaceuticals ranks #825 out of 1423 companies for ROA %. This places Vanda Pharmaceuticals in the lower half of its industry. 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 Biotechnology company?
A good ROA % depends on the Biotechnology industry context. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Vanda Pharmaceuticals and its competitors. Vanda Pharmaceuticals's current ROA % is -42.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vanda Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Vanda Pharmaceuticals (FRA:VM4) is currently considered Fairly Valued. The stock's GF Value™ is €4.79, compared to a current price of €5.17 — trading 7.9% above its estimated fair value. The current ROA % is -42.40%. Vanda Pharmaceuticals' overall GF Score™ is 75/100 with 4 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 Vanda Pharmaceuticals (FRA:VM4), the current ROA % is -42.40% 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 Vanda Pharmaceuticals (FRA:VM4) Overvalued in 2026?
Based on GuruFocus' analysis, Vanda Pharmaceuticals stock appears to be overvalued.
The current stock price of €5.17 is trading 7.9% above its estimated GF Value™ of €4.79.
GuruFocus considers Vanda Pharmaceuticals to be Fairly Valued.
Key valuation signals for FRA:VM4:
ROA %: -42.40%
GF Value™: €4.79 vs. price of €5.17 (7.9% above fair value)
No single metric tells the full story. See the FRA:VM4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vanda Pharmaceuticals Inc is a biopharmaceutical company engaged in the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients. Its commercial portfolio comprises three products; HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) & nighttime sleep disturbances in Smith-Magenis Syndrome (SMS); Fanapt for the treatment of schizophrenia; and PONVORY. Its other products include ASO Molecules, VQW-765, Tradipitant, and VTR-297. The maximum of revenue is derived from the Fanapt product sales. Geographically, the company sells its product predominantly in the United States, and also in Israel, Europe, and Canada.
75GF Score
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