ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. PT Merdeka Battery Materials Tbk's annualizedNet Income for the quarter that ended in Dec. 2025 was Rp284,623 Mil.
PT Merdeka Battery Materials Tbk's average Total Assets over the quarter that ended in Dec. 2025 was Rp60,914,256 Mil. Therefore, PT Merdeka Battery Materials Tbk's annualized ROA % for the quarter that ended in Dec. 2025 was 0.47%.
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.
PT Merdeka Battery Materials Tbk ROA % Related Terms
PT Merdeka Battery Materials Tbk 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.
For the Other Precious Metals & Mining subindustry, PT Merdeka Battery Materials Tbk'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.
PT Merdeka Battery Materials Tbk ROA % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, PT Merdeka Battery Materials Tbk's ROA % distribution charts can be found below:
* The bar in red indicates where PT Merdeka Battery Materials Tbk'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.
PT Merdeka Battery Materials Tbk (ISX:MBMA) has a ROA % of 0.47% 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 PT Merdeka Battery Materials Tbk and its competitors. This is near median its historical median of 0.49. According to the industry distribution chart, PT Merdeka Battery Materials Tbk ranks #617 out of 2665 companies in the Metals & Mining industry, placing it in the top 23.2%.
Is PT Merdeka Battery Materials Tbk's ROA % too high?
PT Merdeka Battery Materials Tbk's current ROA % of 0.47% is near median its 10-year median of 0.49. Based on the distribution chart, PT Merdeka Battery Materials Tbk ranks #617 out of 2665 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, PT Merdeka Battery Materials Tbk has a GF Score™ of 54/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Merdeka Battery Materials Tbk's ROA % compare to HL?
According to the Metals & Mining industry distribution chart, PT Merdeka Battery Materials Tbk ranks #617 out of 2665 companies for ROA %. This places PT Merdeka Battery Materials Tbk in the top 23% of its industry — outperforming the majority of peers. 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 Metals & Mining company?
A good ROA % depends on the Metals & Mining 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 PT Merdeka Battery Materials Tbk and its competitors. PT Merdeka Battery Materials Tbk's current ROA % is 0.47%, which is near median its own 10-year median of 0.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Merdeka Battery Materials Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Merdeka Battery Materials Tbk (ISX:MBMA) is currently considered Significantly Undervalued. The stock's GF Value™ is Rp811.02, compared to a current price of Rp496.00 — trading 38.8% below its estimated fair value. The current ROA % is 0.47%, which is near median its 10-year median of 0.49. PT Merdeka Battery Materials Tbk's overall GF Score™ is 54/100 with 6 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 PT Merdeka Battery Materials Tbk (ISX:MBMA), the current ROA % is 0.47% 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 PT Merdeka Battery Materials Tbk (ISX:MBMA) Overvalued in 2026?
Based on GuruFocus' analysis, PT Merdeka Battery Materials Tbk stock appears to be undervalued.
The current stock price of Rp496.00 is trading 38.8% below its estimated GF Value™ of Rp811.02.
GuruFocus considers PT Merdeka Battery Materials Tbk to be Significantly Undervalued.
Key valuation signals for ISX:MBMA:
ROA %: 0.47% (near median its 10-year median of 0.49)
GF Value™: Rp811.02 vs. price of Rp496.00 (38.8% below fair value)
No single metric tells the full story. See the ISX:MBMA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Merdeka Battery Materials Tbk Business Description
PT Merdeka Battery Materials Tbk is an integrated battery materials and nickel processing company focused on the electric vehicle (EV) battery value chain in Indonesia. The company engages in nickel mining, smelting, and downstream battery material processing activities. Its business operations include the SCM Mine, RKEF smelters, Nickel Matte operations, AIM Project, IKIP industrial area development, and HPAL projects. The company operates through Mining, Manufacturing, and Other segments, with the majority of revenue generated from the Manufacturing segment.
54GF Score
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