Rainbow ChickenJSE:RBO +7.08%12 ROA % is 15.16% as of Dec. 2025, which is 2197% above its 10-year median of 0.66. GuruFocus rates JSE:RBO with a GF Score™ of 12/100. Among 1,990 Consumer Packaged Goods companies, Rainbow Chicken ranks better than 85.33% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Rainbow Chicken's annualizedNet Income for the quarter that ended in Dec. 2025 was R1,339 Mil.
Rainbow Chicken's average Total Assets over the quarter that ended in Dec. 2025 was R8,830 Mil. Therefore, Rainbow Chicken's annualized ROA % for the quarter that ended in Dec. 2025 was 15.16%.
The historical rank and industry rank for Rainbow Chicken's ROA % or its related term are showing as below:
JSE:RBO'
s ROA % Range Over the Past 10 Years
Min: -4.21 Med: 0.66 Max: 10.8
Current: 10.8
During the past 5 years, Rainbow Chicken's highest ROA % was 10.80%. The lowest was -4.21%. And the median was 0.66%.
JSE:RBO's ROA % is ranked better than 85.33% of 1990
companies
in the Consumer Packaged Goods industry
Industry Median: 3.245
vs JSE:RBO: 10.80
Rainbow Chicken (JSE:RBO) 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.
Rainbow Chicken ROA % Related Terms
Rainbow Chicken ROA % Historical Data
* Premium members only.
The historical data trend for Rainbow Chicken'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 Packaged Foods subindustry, Rainbow Chicken'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.
Rainbow Chicken ROA % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Rainbow Chicken's ROA % distribution charts can be found below:
* The bar in red indicates where Rainbow Chicken'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.
Rainbow Chicken (JSE:RBO) has a ROA % of 15.16% 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 Rainbow Chicken and its competitors. This is 2197% above median its historical median of 0.66. According to the industry distribution chart, Rainbow Chicken ranks #292 out of 1990 companies in the Consumer Packaged Goods industry, placing it in the top 14.7%.
Is Rainbow Chicken's ROA % too high?
Rainbow Chicken's current ROA % of 15.16% is 2197% above median its 10-year median of 0.66. The Consumer Packaged Goods industry median ROA % is 3.25. Rainbow Chicken's value of 15.16% is 367.2% above this industry median. Based on the distribution chart, Rainbow Chicken ranks #292 out of 1990 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Rainbow Chicken has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Rainbow Chicken's ROA % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Rainbow Chicken ranks #292 out of 1990 companies for ROA %. This places Rainbow Chicken in the top 15% of its industry — outperforming the majority of peers. The industry median ROA % is 3.25. Rainbow Chicken's value of 15.16% is 367.2% above this benchmark. While the company's 10-year median is 0.66 vs. the industry median of 3.25, Rainbow Chicken 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 Consumer Packaged Goods company?
The median ROA % among Consumer Packaged Goods companies is 3.25, based on 1,990 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. Rainbow Chicken's current ROA % of 15.16% is 367.2% 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 Rainbow Chicken and its competitors. For the Consumer Packaged Goods industry, the median ROA % is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rainbow Chicken's current ROA % is 15.16%, which is 2197% above median its own 10-year median of 0.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Chicken stock overvalued right now?
Rainbow Chicken (JSE:RBO) has a current ROA % of 15.16%. The current ROA % is 15.16%, which is 2197% above median its 10-year median of 0.66 and 367.2% above the Consumer Packaged Goods industry median of 3.25. Rainbow Chicken's overall GF Score™ is 12/100. 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 Rainbow Chicken (JSE:RBO), the current ROA % is 15.16% 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.
Rainbow Chicken Ltd is a fully integrated broiler producing company involved in all stages of chicken production from farm to fork. It is a trusted South African heritage brand that consumers have come to rely on for quality chicken products. Its diverse product offering includes the following product sets: Fresh Chicken, Standard Chicken, Frozen Specialized Chicken, Chilled process meat. It segments includes Chicken, Animal Feed (consisting of Epol and Driehoek), Waste-to-Value (consisting of Matzonox and Matzonox Fertilisers), Group (other immaterial segments). Maximum of revenue is from Chicken Segment.
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