ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Alfa Financial Software Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was £28.4 Mil.
Alfa Financial Software Holdings's average Total Assets over the quarter that ended in Dec. 2025 was £91.2 Mil. Therefore, Alfa Financial Software Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 31.14%.
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.
Alfa Financial Software Holdings ROA % Related Terms
Alfa Financial Software Holdings ROA % Historical 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.
For the Software - Application subindustry, Alfa Financial Software Holdings'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.
Alfa Financial Software Holdings ROA % vs Software Industry
For the Software industry and Technology sector, Alfa Financial Software Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Alfa Financial Software Holdings'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.
Alfa Financial Software Holdings (LSE:ALFA) has a ROA % of 31.14% 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 Alfa Financial Software Holdings and its competitors. This is 24% above median its historical median of 25.13. Over the past decade, Alfa Financial Software Holdings' ROA % has ranged from 7.90 to 34.32. According to the industry distribution chart, Alfa Financial Software Holdings ranks #46 out of 2885 companies in the Software industry, placing it in the top 1.6%.
Is Alfa Financial Software Holdings' ROA % too high?
Alfa Financial Software Holdings' current ROA % of 31.14% is 24% above median its 10-year median of 25.13. Over the past 10 years, this metric has ranged from a low of 7.90 to a high of 34.32. The Software industry median ROA % is 1.68. Alfa Financial Software Holdings' value of 31.14% is 1753.6% above this industry median. Based on the distribution chart, Alfa Financial Software Holdings ranks #46 out of 2885 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Alfa Financial Software Holdings has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alfa Financial Software Holdings' ROA % compare to CRM and SHOP?
According to the Software industry distribution chart, Alfa Financial Software Holdings ranks #46 out of 2885 companies for ROA %. This places Alfa Financial Software Holdings in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 1.68. Alfa Financial Software Holdings' value of 31.14% is 1753.6% above this benchmark. Historically, Alfa Financial Software Holdings' own ROA % has ranged from 7.90 to 34.32 over the past decade. While the company's 10-year median is 25.13 vs. the industry median of 1.68, Alfa Financial Software Holdings 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 Software company?
The median ROA % among Software companies is 1.68, based on 2,885 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. Alfa Financial Software Holdings's current ROA % of 31.14% is 1753.6% 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 Alfa Financial Software Holdings and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alfa Financial Software Holdings's current ROA % is 31.14%, which is 24% above median its own 10-year median of 25.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alfa Financial Software Holdings stock overvalued right now?
Based on GuruFocus' analysis, Alfa Financial Software Holdings (LSE:ALFA) is currently considered Significantly Undervalued. The stock's GF Value™ is £2.38, compared to a current price of £1.55 — trading 35% below its estimated fair value. The current ROA % is 31.14%, which is 24% above median its 10-year median of 25.13 and 1753.6% above the Software industry median of 1.68. Alfa Financial Software Holdings' overall GF Score™ is 82/100. 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 Alfa Financial Software Holdings (LSE:ALFA), the current ROA % is 31.14% 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 Alfa Financial Software Holdings (LSE:ALFA) Overvalued in 2026?
Based on GuruFocus' analysis, Alfa Financial Software Holdings stock appears to be undervalued.
The current stock price of £1.55 is trading 35% below its estimated GF Value™ of £2.38.
GuruFocus considers Alfa Financial Software Holdings to be Significantly Undervalued.
Key valuation signals for LSE:ALFA:
ROA %: 31.14% (24% above median its 10-year median of 25.13)
GF Value™: £2.38 vs. price of £1.55 (35% below fair value)
Industry Position: 1753.6% above the Software median (#46 of 2885)
No single metric tells the full story. See the LSE:ALFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alfa Financial Software Holdings Business Description
Alfa Financial Software Holdings PLC is principally engaged in the provision of software and software-related services to the auto and equipment finance industry. Alfa Systems, its technology platform, supports both retail and corporate business for auto, equipment, wholesale, and dealer finance on a multijurisdictional basis, including leases/loans, originations, and servicing. The company has one operating and reporting segment, being the sale of software and related services. It generates the majority of its revenue from the EMEA and Americas and the rest from other regions.
82GF Score
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