Morgan Advanced MaterialsLSE:MGAM -0.91%74 ROA % is 1.22% as of Dec. 2025, which is 76% below its 10-year median of 5.14. GuruFocus rates LSE:MGAM with a GF Score™ of 74/100 and a GF Value™ of £2.41 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 3,081 Industrial Products companies, Morgan Advanced Materials ranks worse than 58.03% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Morgan Advanced Materials's annualizedNet Income for the quarter that ended in Dec. 2025 was £12.2 Mil.
Morgan Advanced Materials's average Total Assets over the quarter that ended in Dec. 2025 was £1,002.6 Mil. Therefore, Morgan Advanced Materials's annualized ROA % for the quarter that ended in Dec. 2025 was 1.22%.
The historical rank and industry rank for Morgan Advanced Materials's ROA % or its related term are showing as below:
LSE:MGAM'
s ROA % Range Over the Past 10 Years
Min: -2.27 Med: 5.14 Max: 10.93
Current: 2.05
During the past 13 years, Morgan Advanced Materials's highest ROA % was 10.93%. The lowest was -2.27%. And the median was 5.14%.
LSE:MGAM's ROA % is ranked worse than 58.03% of 3081
companies
in the Industrial Products industry
Industry Median: 3.06
vs LSE:MGAM: 2.05
Morgan Advanced Materials (LSE:MGAM) 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.
* 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 Specialty Industrial Machinery subindustry, Morgan Advanced Materials'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.
Morgan Advanced Materials ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Morgan Advanced Materials's ROA % distribution charts can be found below:
* The bar in red indicates where Morgan Advanced Materials'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.
Morgan Advanced Materials (LSE:MGAM) has a ROA % of 1.22% 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 Morgan Advanced Materials and its competitors. This is 76% below median its historical median of 5.14. According to the industry distribution chart, Morgan Advanced Materials ranks #1788 out of 3081 companies in the Industrial Products industry, placing it in the top 58%.
Is Morgan Advanced Materials' ROA % too high?
Morgan Advanced Materials' current ROA % of 1.22% is 76% below median its 10-year median of 5.14. The Industrial Products industry median ROA % is 3.06. Morgan Advanced Materials' value of 1.22% is 60.1% below this industry median. Based on the distribution chart, Morgan Advanced Materials ranks #1788 out of 3081 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Morgan Advanced Materials has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Morgan Advanced Materials' ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Morgan Advanced Materials ranks #1788 out of 3081 companies for ROA %. This places Morgan Advanced Materials in the lower half of its industry. The industry median ROA % is 3.06. Morgan Advanced Materials' value of 1.22% is 60.1% below this benchmark. While the company's 10-year median is 5.14 vs. the industry median of 3.06, Morgan Advanced Materials 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 Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,081 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. Morgan Advanced Materials's current ROA % of 1.22% is 60.1% 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 Morgan Advanced Materials and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morgan Advanced Materials's current ROA % is 1.22%, which is 76% below median its own 10-year median of 5.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Advanced Materials stock overvalued right now?
Based on GuruFocus' analysis, Morgan Advanced Materials (LSE:MGAM) is currently considered Modestly Undervalued. The stock's GF Value™ is £2.41, compared to a current price of £2.17 — trading 10% below its estimated fair value. The current ROA % is 1.22%, which is 76% below median its 10-year median of 5.14 and 60.1% below the Industrial Products industry median of 3.06. Morgan Advanced Materials' overall GF Score™ is 74/100 with 9 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 Morgan Advanced Materials (LSE:MGAM), the current ROA % is 1.22% 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 Morgan Advanced Materials (LSE:MGAM) Overvalued in 2026?
Based on GuruFocus' analysis, Morgan Advanced Materials stock appears to be undervalued.
The current stock price of £2.17 is trading 10% below its estimated GF Value™ of £2.41.
GuruFocus considers Morgan Advanced Materials to be Modestly Undervalued.
Key valuation signals for LSE:MGAM:
ROA %: 1.22% (76% below median its 10-year median of 5.14)
GF Value™: £2.41 vs. price of £2.17 (10% below fair value)
Industry Position: 60.1% below the Industrial Products median (#1788 of 3081)
No single metric tells the full story. See the LSE:MGAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morgan Advanced Materials PLC is an advanced materials company that co-designs and manufactures mission-critical solutions using material science and application expertise. The Company's products and solutions include semiconductor consumables, collector strips and carbon brushes, graphite powders, face seals, sliding bearings, rotary seals, rotary vane pump components, structural ceramic components, engineered coatings, ceramic cores, ceramic-to-metal assemblies, braze alloys, ceramic tubes and rollers, extruded products, laser products, and MACOR machinable glass ceramic. The Group operates through three segments: Thermal Products generates maximum revenue, Performance Carbon, and Technical Ceramics. Geographically, it generates the majority of its revenue from the USA.
74GF Score
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