Dis-Chem PharmaciesJSE:DCP +1.82%88 ROA % is 3.45% as of Feb. 2026, which is 46% below its 10-year median of 6.34. GuruFocus rates JSE:DCP with a GF Score™ of 88/100 and a GF Value™ of R38.03 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 683 Healthcare Providers & Services companies, Dis-Chem Pharmacies ranks better than 66.47% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Dis-Chem Pharmacies's annualizedNet Income for the quarter that ended in Feb. 2026 was R692 Mil.
Dis-Chem Pharmacies's average Total Assets over the quarter that ended in Feb. 2026 was R20,054 Mil. Therefore, Dis-Chem Pharmacies's annualized ROA % for the quarter that ended in Feb. 2026 was 3.45%.
The historical rank and industry rank for Dis-Chem Pharmacies's ROA % or its related term are showing as below:
JSE:DCP'
s ROA % Range Over the Past 10 Years
Min: 4.9 Med: 6.34 Max: 11.06
Current: 4.95
During the past 13 years, Dis-Chem Pharmacies's highest ROA % was 11.06%. The lowest was 4.90%. And the median was 6.34%.
JSE:DCP's ROA % is ranked better than 66.47% of 683
companies
in the Healthcare Providers & Services industry
Industry Median: 1.77
vs JSE:DCP: 4.95
Dis-Chem Pharmacies (JSE:DCP) 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 (Feb. 2026) net income data. The Revenue data used here is two times the semi-annual (Feb. 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.
Dis-Chem Pharmacies ROA % Related Terms
Dis-Chem Pharmacies ROA % Historical Data
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The historical data trend for Dis-Chem Pharmacies'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 Pharmaceutical Retailers subindustry, Dis-Chem Pharmacies'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.
Dis-Chem Pharmacies ROA % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Dis-Chem Pharmacies's ROA % distribution charts can be found below:
* The bar in red indicates where Dis-Chem Pharmacies'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 (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Dis-Chem Pharmacies (JSE:DCP) has a ROA % of 3.45% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Dis-Chem Pharmacies and its competitors. This is 46% below median its historical median of 6.34. Over the past decade, Dis-Chem Pharmacies' ROA % has ranged from 4.90 to 11.06. According to the industry distribution chart, Dis-Chem Pharmacies ranks #229 out of 683 companies in the Healthcare Providers & Services industry, placing it in the top 33.5%.
Is Dis-Chem Pharmacies' ROA % too high?
Dis-Chem Pharmacies' current ROA % of 3.45% is 46% below median its 10-year median of 6.34. Over the past 10 years, this metric has ranged from a low of 4.90 to a high of 11.06. The Healthcare Providers & Services industry median ROA % is 1.77. Dis-Chem Pharmacies' value of 3.45% is 94.9% above this industry median. Based on the distribution chart, Dis-Chem Pharmacies ranks #229 out of 683 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Dis-Chem Pharmacies has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dis-Chem Pharmacies' ROA % compare to competitors?
According to the Healthcare Providers & Services industry distribution chart, Dis-Chem Pharmacies ranks #229 out of 683 companies for ROA %. This puts Dis-Chem Pharmacies in the upper half of its industry. The industry median ROA % is 1.77. Dis-Chem Pharmacies' value of 3.45% is 94.9% above this benchmark. Historically, Dis-Chem Pharmacies' own ROA % has ranged from 4.90 to 11.06 over the past decade. While the company's 10-year median is 6.34 vs. the industry median of 1.77, Dis-Chem Pharmacies has consistently been above 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 Healthcare Providers & Services company?
The median ROA % among Healthcare Providers & Services companies is 1.77, based on 683 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. Dis-Chem Pharmacies's current ROA % of 3.45% is 94.9% above 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 Dis-Chem Pharmacies and its competitors. For the Healthcare Providers & Services industry, the median ROA % is 1.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dis-Chem Pharmacies's current ROA % is 3.45%, which is 46% below median its own 10-year median of 6.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dis-Chem Pharmacies stock overvalued right now?
Based on GuruFocus' analysis, Dis-Chem Pharmacies (JSE:DCP) is currently considered Modestly Undervalued. The stock's GF Value™ is R38.03, compared to a current price of R33.49 — trading 11.9% below its estimated fair value. The current ROA % is 3.45%, which is 46% below median its 10-year median of 6.34 and 94.9% above the Healthcare Providers & Services industry median of 1.77. Dis-Chem Pharmacies' overall GF Score™ is 88/100 with 3 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 Dis-Chem Pharmacies (JSE:DCP), the current ROA % is 3.45% as of Feb. 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 Dis-Chem Pharmacies (JSE:DCP) Overvalued in 2026?
Based on GuruFocus' analysis, Dis-Chem Pharmacies stock appears to be undervalued.
The current stock price of R33.49 is trading 11.9% below its estimated GF Value™ of R38.03.
GuruFocus considers Dis-Chem Pharmacies to be Modestly Undervalued.
Key valuation signals for JSE:DCP:
ROA %: 3.45% (46% below median its 10-year median of 6.34)
GF Value™: R38.03 vs. price of R33.49 (11.9% below fair value)
Industry Position: 94.9% above the Healthcare Providers & Services median (#229 of 683)
No single metric tells the full story. See the JSE:DCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dis-Chem Pharmacies Ltd is a pharmaceutical company based in South Africa. Its product portfolio includes personal care products, beauty products, healthcare and nutrition products, and dispensary and baby care products. The operating segments of the group are Retail and Wholesale. It derives maximum revenue from the Retail segment, which includes company stores, retailers of pharmaceuticals and a variety of health and beauty products, as well as pharma-logistic services and oncology and retailers of pharmaceutical products. The Wholesale segment consists of the CJ wholesale and company distribution businesses, wholesalers of pharmaceuticals, and a variety of health and beauty products. Geographically, the group carries out its business operations principally in South Africa.
88GF Score
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