ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Freee KK's annualizedNet Income for the quarter that ended in Dec. 2025 was $3.9 Mil.
Freee KK's average Total Assets over the quarter that ended in Dec. 2025 was $342.8 Mil. Therefore, Freee KK's annualized ROA % for the quarter that ended in Dec. 2025 was 1.13%.
The historical rank and industry rank for Freee KK's ROA % or its related term are showing as below:
FREKF'
s ROA % Range Over the Past 10 Years
Min: -37.64 Med: -23.52 Max: 19.67
Current: 19.67
During the past 7 years, Freee KK's highest ROA % was 19.67%. The lowest was -37.64%. And the median was -23.52%.
FREKF's ROA % is ranked better than 95.28% of 2883
companies
in the Software industry
Industry Median: 1.68
vs FREKF: 19.67
Freee KK (OTCPK:FREKF) 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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) 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.
Freee KK ROA % Related Terms
Freee KK ROA % Historical Data
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The historical data trend for Freee KK'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 Software - Application subindustry, Freee KK'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.
Freee KK ROA % vs Software Industry
For the Software industry and Technology sector, Freee KK's ROA % distribution charts can be found below:
* The bar in red indicates where Freee KK'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Freee KK (FREKF) has a ROA % of 1.13% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Freee KK and its competitors. According to the industry distribution chart, Freee KK ranks #136 out of 2883 companies in the Software industry, placing it in the top 4.7%.
Is Freee KK's ROA % too high?
Freee KK's current ROA % is 1.13%. The Software industry median ROA % is 1.68. Freee KK's value of 1.13% is 32.7% below this industry median. Based on the distribution chart, Freee KK ranks #136 out of 2883 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Freee KK has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Freee KK's ROA % compare to CRM and SHOP?
According to the Software industry distribution chart, Freee KK ranks #136 out of 2883 companies for ROA %. This places Freee KK in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 1.68. Freee KK's value of 1.13% is 32.7% below 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 Software company?
The median ROA % among Software companies is 1.68, based on 2,883 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. Freee KK's current ROA % of 1.13% is 32.7% below 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 Freee KK 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. Freee KK's current ROA % is 1.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freee KK stock overvalued right now?
Based on GuruFocus' analysis, Freee KK (FREKF) is currently considered Possible Value Trap. The stock's GF Value™ is $31.07, compared to a current price of $11.85 — trading 61.9% below its estimated fair value. The current ROA % is 1.13% and 32.7% below the Software industry median of 1.68. Freee KK's overall GF Score™ is 68/100 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 Freee KK (FREKF), the current ROA % is 1.13% as of Dec. 2025. 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 Freee KK (FREKF) Overvalued in 2026?
Based on GuruFocus' analysis, Freee KK stock appears to be undervalued.
The current stock price of $11.85 is trading 61.9% below its estimated GF Value™ of $31.07.
GuruFocus considers Freee KK to be Possible Value Trap.
Key valuation signals for FREKF:
ROA %: 1.13%
GF Value™: $31.07 vs. price of $11.85 (61.9% below fair value)
Industry Position: 32.7% below the Software median (#136 of 2883)
No single metric tells the full story. See the FREKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Freee KK is a developer of cloud-based software. Its software products include Cloud Accounting software, Cloud HR Labor software, Cloud ERP for Midsize companies, among others.
68GF Score
Get the complete analysis for FREKF
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