Mercia Asset ManagementLSE:MERC 54 ROA % is 1.66% as of Sep. 2025, which is 28% above its 10-year median of 1.30. GuruFocus rates LSE:MERC with a GF Score™ of 54/100 and a GF Value™ of £0.36 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,635 Asset Management companies, Mercia Asset Management ranks worse than 63.06% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Mercia Asset Management's annualizedNet Income for the quarter that ended in Sep. 2025 was £3.36 Mil.
Mercia Asset Management's average Total Assets over the quarter that ended in Sep. 2025 was £202.69 Mil. Therefore, Mercia Asset Management's annualized ROA % for the quarter that ended in Sep. 2025 was 1.66%.
The historical rank and industry rank for Mercia Asset Management's ROA % or its related term are showing as below:
LSE:MERC'
s ROA % Range Over the Past 10 Years
Min: -12.17 Med: 1.3 Max: 19.73
Current: 1.65
During the past 13 years, Mercia Asset Management's highest ROA % was 19.73%. The lowest was -12.17%. And the median was 1.30%.
LSE:MERC's ROA % is ranked worse than 63.06% of 1635
companies
in the Asset Management industry
Industry Median: 3.97
vs LSE:MERC: 1.65
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 (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 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, Mercia Asset Management'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.
Mercia Asset Management ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Mercia Asset Management's ROA % distribution charts can be found below:
* The bar in red indicates where Mercia Asset Management'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 (Sep. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Mercia Asset Management (LSE:MERC) has a ROA % of 1.66% as of Sep. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Mercia Asset Management and its competitors. This is 28% above median its historical median of 1.30. According to the industry distribution chart, Mercia Asset Management ranks #1031 out of 1635 companies in the Asset Management industry, placing it in the top 63.1%.
Is Mercia Asset Management's ROA % too high?
Mercia Asset Management's current ROA % of 1.66% is 28% above median its 10-year median of 1.30. The Asset Management industry median ROA % is 3.97. Mercia Asset Management's value of 1.66% is 58.2% below this industry median. Based on the distribution chart, Mercia Asset Management ranks #1031 out of 1635 companies in the Asset Management industry, which is below the industry midpoint. Overall, Mercia Asset Management has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercia Asset Management's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Mercia Asset Management ranks #1031 out of 1635 companies for ROA %. This places Mercia Asset Management in the lower half of its industry. The industry median ROA % is 3.97. Mercia Asset Management's value of 1.66% is 58.2% below this benchmark. While the company's 10-year median is 1.30 vs. the industry median of 3.97, Mercia Asset Management has consistently been below 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. Mercia Asset Management's current ROA % of 1.66% is 58.2% below 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 Mercia Asset Management 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. Mercia Asset Management's current ROA % is 1.66%, which is 28% above median its own 10-year median of 1.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercia Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Mercia Asset Management (LSE:MERC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.36, compared to a current price of £0.29 — trading 20.1% below its estimated fair value. The current ROA % is 1.66%, which is 28% above median its 10-year median of 1.30 and 58.2% below the Asset Management industry median of 3.97. Mercia Asset Management's overall GF Score™ is 54/100 with 3 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 Mercia Asset Management (LSE:MERC), the current ROA % is 1.66% as of Sep. 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 Mercia Asset Management (LSE:MERC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercia Asset Management stock appears to be undervalued.
The current stock price of £0.29 is trading 20.1% below its estimated GF Value™ of £0.36.
GuruFocus considers Mercia Asset Management to be Modestly Undervalued.
Key valuation signals for LSE:MERC:
ROA %: 1.66% (28% above median its 10-year median of 1.30)
GF Value™: £0.36 vs. price of £0.29 (20.1% below fair value)
Industry Position: 58.2% below the Asset Management median (#1031 of 1635)
No single metric tells the full story. See the LSE:MERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercia Asset Management PLC is a specialist asset manager focusing on supporting regional SMEs. The company provides capital across its four asset classes proprietary balance sheet capital, venture capital, private equity, and debt. The company initially nurtures businesses via its third-party funds under management and then, over time, provides further funding to the companies by deploying direct investment follow-on capital from its balance sheet. It has more than eight offices in the UK region, approx. 20 university partnerships and extensive personal networks, providing it with access to high-quality deal flow.
54GF Score
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