Labat AfricaJSE:LAB +66.67% ROA % is 12.32% as of Nov. 2025. The stock has 5 warning signs investors should review. Among 1,006 Drug Manufacturers companies, Labat Africa ranks better than 98.31% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Labat Africa's annualizedNet Income for the quarter that ended in Nov. 2025 was R89.0 Mil.
Labat Africa's average Total Assets over the quarter that ended in Nov. 2025 was R722.7 Mil. Therefore, Labat Africa's annualized ROA % for the quarter that ended in Nov. 2025 was 12.32%.
The historical rank and industry rank for Labat Africa's ROA % or its related term are showing as below:
JSE:LAB'
s ROA % Range Over the Past 10 Years
Min: -56.23 Med: -2.84 Max: 36.89
Current: 29.39
During the past 13 years, Labat Africa's highest ROA % was 36.89%. The lowest was -56.23%. And the median was -2.84%.
JSE:LAB's ROA % is ranked better than 98.31% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 2.685
vs JSE:LAB: 29.39
Labat Africa (JSE:LAB) 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 (Nov. 2025) net income data. The Revenue data used here is two times the semi-annual (Nov. 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.
Labat Africa ROA % Related Terms
Labat Africa ROA % Historical Data
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The historical data trend for Labat Africa'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 Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's ROA % distribution charts can be found below:
* The bar in red indicates where Labat Africa'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 (Nov. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Labat Africa (JSE:LAB) has a ROA % of 12.32% as of Nov. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Labat Africa and its competitors. According to the industry distribution chart, Labat Africa ranks #17 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 1.7%.
Is Labat Africa's ROA % too high?
Labat Africa's current ROA % is 12.32%. The Drug Manufacturers industry median ROA % is 2.69. Labat Africa's value of 12.32% is 358.8% above this industry median. Based on the distribution chart, Labat Africa ranks #17 out of 1006 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Labat Africa's ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #17 out of 1006 companies for ROA %. This places Labat Africa in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 2.69. Labat Africa's value of 12.32% is 358.8% above 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.69, based on 1,006 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. Labat Africa's current ROA % of 12.32% is 358.8% 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 Labat Africa and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current ROA % is 12.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current ROA % is 12.32% and 358.8% above the Drug Manufacturers industry median of 2.69. 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 Labat Africa (JSE:LAB), the current ROA % is 12.32% as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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