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First Real Estate Investment Trust of New Jersey (OTCPK:FREVS) 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 (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 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.
First Real Estate Investment Trust of New Jersey ROA % Related Terms
First Real Estate Investment Trust of New Jersey ROA % Historical 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.
First Real Estate Investment Trust of New Jersey ROA % Chart
First Real Estate Investment Trust of New Jersey Annual Data
* 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.
First Real Estate Investment Trust of New Jersey ROA % vs REITs Industry
* 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 (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
First Real Estate Investment Trust of New Jersey (FREVS) has a ROA % of 1.66% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on First Real Estate Investment Trust of New Jersey and its competitors. This is near median its historical median of 1.54. Over the past decade, First Real Estate Investment Trust of New Jersey's ROA % has ranged from 0.26 to 17.53. According to the industry distribution chart, First Real Estate Investment Trust of New Jersey ranks #555 out of 924 companies in the REITs industry, placing it in the top 60.1%.
Is First Real Estate Investment Trust of New Jersey's ROA % too high?
First Real Estate Investment Trust of New Jersey's current ROA % of 1.66% is near median its 10-year median of 1.54. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 17.53. The REITs industry median ROA % is 3.25. First Real Estate Investment Trust of New Jersey's value of 1.66% is 48.8% below this industry median. Based on the distribution chart, First Real Estate Investment Trust of New Jersey ranks #555 out of 924 companies in the REITs industry, which is below the industry midpoint. Overall, First Real Estate Investment Trust of New Jersey has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First Real Estate Investment Trust of New Jersey's ROA % compare to ELME and MRTI?
According to the REITs industry distribution chart, First Real Estate Investment Trust of New Jersey ranks #555 out of 924 companies for ROA %. This places First Real Estate Investment Trust of New Jersey in the lower half of its industry. The industry median ROA % is 3.25. First Real Estate Investment Trust of New Jersey's value of 1.66% is 48.8% below this benchmark. Historically, First Real Estate Investment Trust of New Jersey's own ROA % has ranged from 0.26 to 17.53 over the past decade. While the company's 10-year median is 1.54 vs. the industry median of 3.25, First Real Estate Investment Trust of New Jersey has consistently been below 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 REITs company?
The median ROA % among REITs companies is 3.25, based on 924 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. First Real Estate Investment Trust of New Jersey's current ROA % of 1.66% is 48.8% 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 First Real Estate Investment Trust of New Jersey and its competitors. For the REITs industry, the median ROA % is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Real Estate Investment Trust of New Jersey's current ROA % is 1.66%, which is near median its own 10-year median of 1.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Real Estate Investment Trust of New Jersey stock overvalued right now?
Based on GuruFocus' analysis, First Real Estate Investment Trust of New Jersey (FREVS) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.10, compared to a current price of $21.35 — trading 24.9% above its estimated fair value. The current ROA % is 1.66%, which is near median its 10-year median of 1.54 and 48.8% below the REITs industry median of 3.25. First Real Estate Investment Trust of New Jersey's overall GF Score™ is 65/100 with 9 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 First Real Estate Investment Trust of New Jersey (FREVS), the current ROA % is 1.66% as of Apr. 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 First Real Estate Investment Trust of New Jersey (FREVS) Overvalued in 2026?
Based on GuruFocus' analysis, First Real Estate Investment Trust of New Jersey stock appears to be overvalued.
The current stock price of $21.35 is trading 24.9% above its estimated GF Value™ of $17.10.
GuruFocus considers First Real Estate Investment Trust of New Jersey to be Modestly Overvalued.
Key valuation signals for FREVS:
ROA %: 1.66% (near median its 10-year median of 1.54)
GF Value™: $17.10 vs. price of $21.35 (24.9% above fair value)
Industry Position: 48.8% below the REITs median (#555 of 924)
No single metric tells the full story. See the FREVS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Real Estate Investment Trust of New Jersey Inc operates in the real estate sector of the United States. It implies the investment in real estate properties and passing on a regular income and benefit of capital appreciation to its shareholders. The company operates in two reportable segments; commercial properties and residential properties. Its revenues consist of fixed rental income from its residential and commercial properties and additional rent in the form of expense reimbursements acquired from its income-producing commercial properties. The majority of revenue is derived from the Residential properties segment.
65GF Score
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