ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LM Funding America's annualizedNet Income for the quarter that ended in Mar. 2026 was $-40.48 Mil.
LM Funding America's average Total Assets over the quarter that ended in Mar. 2026 was $46.53 Mil. Therefore, LM Funding America's annualized ROA % for the quarter that ended in Mar. 2026 was -86.98%.
The historical rank and industry rank for LM Funding America's ROA % or its related term are showing as below:
LMFA'
s ROA % Range Over the Past 10 Years
Min: -143.99 Med: -37.79 Max: 12.79
Current: -68.37
During the past 13 years, LM Funding America's highest ROA % was 12.79%. The lowest was -143.99%. And the median was -37.79%.
LMFA's ROA % is ranked worse than 95.83% of 816
companies
in the Capital Markets industry
Industry Median: 1.495
vs LMFA: -68.37
LM Funding America (NAS:LMFA) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
LM Funding America ROA % Related Terms
LM Funding America ROA % Historical Data
* Premium members only.
The historical data trend for LM Funding America'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 Capital Markets subindustry, LM Funding America'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.
LM Funding America ROA % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LM Funding America's ROA % distribution charts can be found below:
* The bar in red indicates where LM Funding America'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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
LM Funding America (LMFA) has a ROA % of -86.98% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on LM Funding America and its competitors. According to the industry distribution chart, LM Funding America ranks #782 out of 816 companies in the Capital Markets industry, placing it in the top 95.8%.
Is LM Funding America's ROA % too high?
LM Funding America's current ROA % is -86.98%. Based on the distribution chart, LM Funding America ranks #782 out of 816 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, LM Funding America has a GF Score™ of 26/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does LM Funding America's ROA % compare to WAI and PMAX?
According to the Capital Markets industry distribution chart, LM Funding America ranks #782 out of 816 companies for ROA %. This places LM Funding America in the lower half of its industry. The industry median ROA % is 1.50. 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 Capital Markets company?
The median ROA % among Capital Markets companies is 1.50, based on 816 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. 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 LM Funding America and its competitors. For the Capital Markets industry, the median ROA % is 1.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LM Funding America's current ROA % is -86.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LM Funding America stock overvalued right now?
Based on GuruFocus' analysis, LM Funding America (LMFA) is currently considered Possible Value Trap. The stock's GF Value™ is $0.51, compared to a current price of $0.15 — trading 70.8% below its estimated fair value. The current ROA % is -86.98%. LM Funding America's overall GF Score™ is 26/100 with 5 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 LM Funding America (LMFA), the current ROA % is -86.98% as of Mar. 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 LM Funding America (LMFA) Overvalued in 2026?
Based on GuruFocus' analysis, LM Funding America stock appears to be undervalued.
The current stock price of $0.15 is trading 70.8% below its estimated GF Value™ of $0.51.
GuruFocus considers LM Funding America to be Possible Value Trap.
Key valuation signals for LMFA:
ROA %: -86.98%
GF Value™: $0.51 vs. price of $0.15 (70.8% below fair value)
No single metric tells the full story. See the LMFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LM Funding America Inc is a financial services company. The company provides funding to nonprofit community associations located in the state of Florida and to nonprofit community associations in the states of Washington and Colorado. Its products include Original Product and New Neighbor Guaranty. Its original product offering consists of providing funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It currently has two lines of business recently commenced cryptocurrency mining business and historical specialty finance business. The Company has two operating segments: Specialty Finance and Mining and Treasury Operations.
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