AECIJSE:AFE +0.71%62 ROA % is 0.45% as of Dec. 2025, which is 90% below its 10-year median of 4.41. GuruFocus rates JSE:AFE with a GF Score™ of 62/100 and a GF Value™ of R90.99 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,619 Chemicals companies, AECI ranks worse than 62.01% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. AECI's annualizedNet Income for the quarter that ended in Dec. 2025 was R108 Mil.
AECI's average Total Assets over the quarter that ended in Dec. 2025 was R24,259 Mil. Therefore, AECI's annualized ROA % for the quarter that ended in Dec. 2025 was 0.45%.
The historical rank and industry rank for AECI's ROA % or its related term are showing as below:
JSE:AFE'
s ROA % Range Over the Past 10 Years
Min: -1.01 Med: 4.41 Max: 6
Current: 1.45
During the past 13 years, AECI's highest ROA % was 6.00%. The lowest was -1.01%. And the median was 4.41%.
JSE:AFE's ROA % is ranked worse than 62.01% of 1619
companies
in the Chemicals industry
Industry Median: 2.9
vs JSE:AFE: 1.45
AECI (JSE:AFE) 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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (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.
AECI ROA % Related Terms
AECI ROA % Historical Data
* Premium members only.
The historical data trend for AECI'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 Specialty Chemicals subindustry, AECI'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.
AECI ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, AECI's ROA % distribution charts can be found below:
* The bar in red indicates where AECI'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. 2025) net income data.
ROA % is displayed in the 30-year financial page.
AECI (JSE:AFE) has a ROA % of 0.45% 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 AECI and its competitors. This is 90% below median its historical median of 4.41. According to the industry distribution chart, AECI ranks #1004 out of 1619 companies in the Chemicals industry, placing it in the top 62%.
Is AECI's ROA % too high?
AECI's current ROA % of 0.45% is 90% below median its 10-year median of 4.41. The Chemicals industry median ROA % is 2.90. AECI's value of 0.45% is 84.5% below this industry median. Based on the distribution chart, AECI ranks #1004 out of 1619 companies in the Chemicals industry, which is below the industry midpoint. Overall, AECI has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AECI's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, AECI ranks #1004 out of 1619 companies for ROA %. This places AECI in the lower half of its industry. The industry median ROA % is 2.90. AECI's value of 0.45% is 84.5% below this benchmark. While the company's 10-year median is 4.41 vs. the industry median of 2.90, AECI 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 Chemicals company?
The median ROA % among Chemicals companies is 2.90, based on 1,619 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. AECI's current ROA % of 0.45% is 84.5% 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 AECI and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AECI's current ROA % is 0.45%, which is 90% below median its own 10-year median of 4.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AECI stock overvalued right now?
Based on GuruFocus' analysis, AECI (JSE:AFE) is currently considered Significantly Overvalued. The stock's GF Value™ is R90.99, compared to a current price of R125.38 — trading 37.8% above its estimated fair value. The current ROA % is 0.45%, which is 90% below median its 10-year median of 4.41 and 84.5% below the Chemicals industry median of 2.90. AECI's overall GF Score™ is 62/100 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 AECI (JSE:AFE), the current ROA % is 0.45% 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 AECI (JSE:AFE) Overvalued in 2026?
Based on GuruFocus' analysis, AECI stock appears to be overvalued.
The current stock price of R125.38 is trading 37.8% above its estimated GF Value™ of R90.99.
GuruFocus considers AECI to be Significantly Overvalued.
Key valuation signals for JSE:AFE:
ROA %: 0.45% (90% below median its 10-year median of 4.41)
GF Value™: R90.99 vs. price of R125.38 (37.8% above fair value)
Industry Position: 84.5% below the Chemicals median (#1004 of 1619)
No single metric tells the full story. See the JSE:AFE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AECI Ltd is a diversified group operating predominantly in the chemicals industry. The company performs its various business activities in the following reportable segments: AECI Mining, AECI Chemicals, AECI Managed Businesses, and AECI Property Services and Corporate. A majority of its revenue is generated from the AECI Mining segment, which provides a mine-to-mineral solution for the international mining sector. The offerings under this segment include commercial explosives, initiating systems, blasting services, and surfactants for explosives manufacture across the value chain to chemicals for ore beneficiation and tailings treatment. Geographically, the group generates a majority of its revenue from Africa, followed by Asia-Pacific, Europe, North America, and Latin America.
62GF Score
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