Arcontech GroupLSE:ARC 50 ROA % is 7.32% as of Dec. 2025, which is 34% below its 10-year median of 11.16. GuruFocus rates LSE:ARC with a GF Score™ of 50/100 and a GF Value™ of £0.87 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,883 Software companies, Arcontech Group ranks better than 74.51% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Arcontech Group's annualizedNet Income for the quarter that ended in Dec. 2025 was £0.79 Mil.
Arcontech Group's average Total Assets over the quarter that ended in Dec. 2025 was £10.80 Mil. Therefore, Arcontech Group's annualized ROA % for the quarter that ended in Dec. 2025 was 7.32%.
The historical rank and industry rank for Arcontech Group's ROA % or its related term are showing as below:
LSE:ARC'
s ROA % Range Over the Past 10 Years
Min: 7.04 Med: 11.16 Max: 17.65
Current: 7.63
During the past 13 years, Arcontech Group's highest ROA % was 17.65%. The lowest was 7.04%. And the median was 11.16%.
LSE:ARC's ROA % is ranked better than 74.51% of 2883
companies
in the Software industry
Industry Median: 1.68
vs LSE:ARC: 7.63
Arcontech Group (LSE:ARC) 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.
Arcontech Group ROA % Related Terms
Arcontech Group ROA % Historical Data
* Premium members only.
The historical data trend for Arcontech Group'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 Software - Application subindustry, Arcontech Group'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.
Arcontech Group ROA % vs Software Industry
For the Software industry and Technology sector, Arcontech Group's ROA % distribution charts can be found below:
* The bar in red indicates where Arcontech Group'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.
Arcontech Group (LSE:ARC) has a ROA % of 7.32% 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 Arcontech Group and its competitors. This is 34% below median its historical median of 11.16. Over the past decade, Arcontech Group's ROA % has ranged from 7.04 to 17.65. According to the industry distribution chart, Arcontech Group ranks #735 out of 2883 companies in the Software industry, placing it in the top 25.5%.
Is Arcontech Group's ROA % too high?
Arcontech Group's current ROA % of 7.32% is 34% below median its 10-year median of 11.16. Over the past 10 years, this metric has ranged from a low of 7.04 to a high of 17.65. The Software industry median ROA % is 1.68. Arcontech Group's value of 7.32% is 335.7% above this industry median. Based on the distribution chart, Arcontech Group ranks #735 out of 2883 companies in the Software industry, which is above the industry midpoint. Overall, Arcontech Group has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arcontech Group's ROA % compare to CRM and SHOP?
According to the Software industry distribution chart, Arcontech Group ranks #735 out of 2883 companies for ROA %. This puts Arcontech Group in the upper half of its industry. The industry median ROA % is 1.68. Arcontech Group's value of 7.32% is 335.7% above this benchmark. Historically, Arcontech Group's own ROA % has ranged from 7.04 to 17.65 over the past decade. While the company's 10-year median is 11.16 vs. the industry median of 1.68, Arcontech Group 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 2,883 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. Arcontech Group's current ROA % of 7.32% is 335.7% 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 Arcontech Group 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. Arcontech Group's current ROA % is 7.32%, which is 34% below median its own 10-year median of 11.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcontech Group stock overvalued right now?
Based on GuruFocus' analysis, Arcontech Group (LSE:ARC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.87, compared to a current price of £0.78 — trading 10.9% below its estimated fair value. The current ROA % is 7.32%, which is 34% below median its 10-year median of 11.16 and 335.7% above the Software industry median of 1.68. Arcontech Group's overall GF Score™ is 50/100 with 1 warning sign 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 Arcontech Group (LSE:ARC), the current ROA % is 7.32% 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 Arcontech Group (LSE:ARC) Overvalued in 2026?
Based on GuruFocus' analysis, Arcontech Group stock appears to be undervalued.
The current stock price of £0.78 is trading 10.9% below its estimated GF Value™ of £0.87.
GuruFocus considers Arcontech Group to be Modestly Undervalued.
Key valuation signals for LSE:ARC:
ROA %: 7.32% (34% below median its 10-year median of 11.16)
GF Value™: £0.87 vs. price of £0.78 (10.9% below fair value)
Industry Position: 335.7% above the Software median (#735 of 2883)
No single metric tells the full story. See the LSE:ARC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arcontech Group PLC is a real-time software company. The company develops and sells products and bespoke systems for collection, processing, distribution and presentation and time-sensitive financial markets data and provides computer consultancy services. Its products include Cityvision, Excelerator, Cityvison Cache, Cityvision Relay, and others. The company has a software development and license fees segment. The company operates in UK, Europe (excluding UK), Africa, North America, Australia, and Asia Pacific.
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