Herald Investment TrustLSE:HRI -0.66%59 ROA % is 10.41% as of Dec. 2025, which is 25% below its 10-year median of 13.95. GuruFocus rates LSE:HRI with a GF Score™ of 59/100 and a GF Value™ of £52.65 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 1,635 Asset Management companies, Herald Investment Trust ranks better than 66.73% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Herald Investment Trust's annualizedNet Income for the quarter that ended in Dec. 2025 was £133.9 Mil.
Herald Investment Trust's average Total Assets over the quarter that ended in Dec. 2025 was £1,286.2 Mil. Therefore, Herald Investment Trust's annualized ROA % for the quarter that ended in Dec. 2025 was 10.41%.
The historical rank and industry rank for Herald Investment Trust's ROA % or its related term are showing as below:
LSE:HRI'
s ROA % Range Over the Past 10 Years
Min: -26.43 Med: 13.95 Max: 30.84
Current: 7.72
During the past 13 years, Herald Investment Trust's highest ROA % was 30.84%. The lowest was -26.43%. And the median was 13.95%.
LSE:HRI's ROA % is ranked better than 66.73% of 1635
companies
in the Asset Management industry
Industry Median: 3.97
vs LSE:HRI: 7.72
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.
* 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 Asset Management subindustry, Herald Investment Trust'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.
Herald Investment Trust ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Herald Investment Trust's ROA % distribution charts can be found below:
* The bar in red indicates where Herald Investment Trust'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.
Herald Investment Trust (LSE:HRI) has a ROA % of 10.41% 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 Herald Investment Trust and its competitors. This is 25% below median its historical median of 13.95. According to the industry distribution chart, Herald Investment Trust ranks #544 out of 1635 companies in the Asset Management industry, placing it in the top 33.3%.
Is Herald Investment Trust's ROA % too high?
Herald Investment Trust's current ROA % of 10.41% is 25% below median its 10-year median of 13.95. The Asset Management industry median ROA % is 3.97. Herald Investment Trust's value of 10.41% is 162.2% above this industry median. Based on the distribution chart, Herald Investment Trust ranks #544 out of 1635 companies in the Asset Management industry, which is above the industry midpoint. Overall, Herald Investment Trust has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Herald Investment Trust's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Herald Investment Trust ranks #544 out of 1635 companies for ROA %. This puts Herald Investment Trust in the upper half of its industry. The industry median ROA % is 3.97. Herald Investment Trust's value of 10.41% is 162.2% above this benchmark. While the company's 10-year median is 13.95 vs. the industry median of 3.97, Herald Investment Trust 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 an Asset Management company?
The median ROA % among Asset Management companies is 3.97, based on 1,635 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. Herald Investment Trust's current ROA % of 10.41% is 162.2% 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 Herald Investment Trust and its competitors. For the Asset Management industry, the median ROA % is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herald Investment Trust's current ROA % is 10.41%, which is 25% below median its own 10-year median of 13.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Herald Investment Trust stock overvalued right now?
Based on GuruFocus' analysis, Herald Investment Trust (LSE:HRI) is currently considered Significantly Undervalued. The stock's GF Value™ is £52.65, compared to a current price of £29.90 — trading 43.2% below its estimated fair value. The current ROA % is 10.41%, which is 25% below median its 10-year median of 13.95 and 162.2% above the Asset Management industry median of 3.97. Herald Investment Trust's overall GF Score™ is 59/100 with 6 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 Herald Investment Trust (LSE:HRI), the current ROA % is 10.41% 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 Herald Investment Trust (LSE:HRI) Overvalued in 2026?
Based on GuruFocus' analysis, Herald Investment Trust stock appears to be undervalued.
The current stock price of £29.90 is trading 43.2% below its estimated GF Value™ of £52.65.
GuruFocus considers Herald Investment Trust to be Significantly Undervalued.
Key valuation signals for LSE:HRI:
ROA %: 10.41% (25% below median its 10-year median of 13.95)
GF Value™: £52.65 vs. price of £29.90 (43.2% below fair value)
Industry Position: 162.2% above the Asset Management median (#544 of 1635)
No single metric tells the full story. See the LSE:HRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Herald Investment Trust PLC is a UK-based investment trust that aims to capital appreciation through investments in smaller quoted companies in the areas of telecommunications, multimedia, and technology on a long-term basis. It focuses on a diversified portfolio that offers long-term growth potential and benchmarks its performance against the technology sector. The trust's investment portfolio includes companies that are in the business of software and computer services, technology hardware and equipment, printing and publishing, industrial sectors, support services, and others. Geographically, investments of the company are spread across the UK, North America, Japan, Asia-Pacific, Europe, the Middle East and Africa. The trust's revenue mainly consists of dividends and interest.
59GF Score
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