ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. SMW Group's annualizedNet Income for the quarter that ended in Dec. 2021 was €-1.33 Mil.
SMW Group's average Total Assets over the quarter that ended in Dec. 2021 was €23.29 Mil. Therefore, SMW Group's annualized ROA % for the quarter that ended in Dec. 2021 was -5.72%.
The historical rank and industry rank for SMW Group's ROA % or its related term are showing as below:
FRA:XAO'
s ROA % Range Over the Past 10 Years
Min: -103.96 Med: -44.81 Max: 46.34
Current: -10.5
During the past 13 years, SMW Group's highest ROA % was 46.34%. The lowest was -103.96%. And the median was -44.81%.
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 two times the semi-annual (Dec. 2021) net income data. The Revenue data used here is two times the semi-annual (Dec. 2021) 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.
SMW Group ROA % Related Terms
SMW Group ROA % Historical Data
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The historical data trend for SMW Group'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 Farm & Heavy Construction Machinery subindustry, SMW Group'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.
SMW Group ROA % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, SMW Group's ROA % distribution charts can be found below:
* The bar in red indicates where SMW Group'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 two times the semi-annual (Dec. 2021) net income data.
ROA % is displayed in the 30-year financial page.
SMW Group (FRA:XAO) has a ROA % of -5.72% as of Dec. 2021. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on SMW Group and its competitors.
Is SMW Group's ROA % too high?
SMW Group's current ROA % is -5.72%.
How does SMW Group's ROA % compare to CAT and DE?
SMW Group's ROA % of -5.72% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROA % is 3.81. 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 Farm & Heavy Construction Machinery company?
The median ROA % among Farm & Heavy Construction Machinery companies is 3.81, based on 212 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. 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 SMW Group and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROA % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SMW Group's current ROA % is -5.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMW Group stock overvalued right now?
SMW Group (FRA:XAO) has a current ROA % of -5.72%. The current ROA % is -5.72%. 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 SMW Group (FRA:XAO), the current ROA % is -5.72% as of Dec. 2021. 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.
SMW Group Ltd is a mining and industry services provider based in Rockhampton and servicing Central Queensland. The company offers full-service maintenance, fabrication, and field service to the mining industry in the Bowen Basin, Galilee Basin and beyond. It provides field maintenance and workshop maintenance services and can design, engineer, fabricate and service all types of heavy equipment. The company's segments include Mackay and Rockhampton. It generates maximum revenue from the Rockhampton segment.
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