ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NextEnergy Solar Fund's annualizedNet Income for the quarter that ended in Mar. 2026 was £-98.33 Mil.
NextEnergy Solar Fund's average Total Assets over the quarter that ended in Mar. 2026 was £675.60 Mil. Therefore, NextEnergy Solar Fund's annualized ROA % for the quarter that ended in Mar. 2026 was -14.55%.
The historical rank and industry rank for NextEnergy Solar Fund's ROA % or its related term are showing as below:
LSE:NESF'
s ROA % Range Over the Past 10 Years
Min: -8.8 Med: 5.26 Max: 15.18
Current: -8.72
During the past 12 years, NextEnergy Solar Fund's highest ROA % was 15.18%. The lowest was -8.80%. And the median was 5.26%.
LSE:NESF's ROA % is ranked worse than 87.09% of 1635
companies
in the Asset Management industry
Industry Median: 3.97
vs LSE:NESF: -8.72
NextEnergy Solar Fund (LSE:NESF) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) 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, NextEnergy Solar Fund'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.
NextEnergy Solar Fund ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, NextEnergy Solar Fund's ROA % distribution charts can be found below:
* The bar in red indicates where NextEnergy Solar Fund'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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
NextEnergy Solar Fund (LSE:NESF) has a ROA % of -14.55% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on NextEnergy Solar Fund and its competitors. According to the industry distribution chart, NextEnergy Solar Fund ranks #1424 out of 1635 companies in the Asset Management industry, placing it in the top 87.1%.
Is NextEnergy Solar Fund's ROA % too high?
NextEnergy Solar Fund's current ROA % is -14.55%. Based on the distribution chart, NextEnergy Solar Fund ranks #1424 out of 1635 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, NextEnergy Solar Fund has a GF Score™ of 35/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NextEnergy Solar Fund's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, NextEnergy Solar Fund ranks #1424 out of 1635 companies for ROA %. This places NextEnergy Solar Fund in the lower half of its industry. The industry median ROA % is 3.97. 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. 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 NextEnergy Solar Fund 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. NextEnergy Solar Fund's current ROA % is -14.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NextEnergy Solar Fund stock overvalued right now?
Based on GuruFocus' analysis, NextEnergy Solar Fund (LSE:NESF) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.01, compared to a current price of £0.45 — trading 4440% above its estimated fair value. The current ROA % is -14.55%. NextEnergy Solar Fund's overall GF Score™ is 35/100. 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 NextEnergy Solar Fund (LSE:NESF), the current ROA % is -14.55% as of Mar. 2026. 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 NextEnergy Solar Fund (LSE:NESF) Overvalued in 2026?
Based on GuruFocus' analysis, NextEnergy Solar Fund stock appears to be overvalued.
The current stock price of £0.45 is trading 4440% above its estimated GF Value™ of £0.01.
GuruFocus considers NextEnergy Solar Fund to be Significantly Overvalued.
Key valuation signals for LSE:NESF:
ROA %: -14.55%
GF Value™: £0.01 vs. price of £0.45 (4440% above fair value)
No single metric tells the full story. See the LSE:NESF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NextEnergy Solar Fund Ltd is a closed-ended investment company. The company seeks to provide investors with a sustainable and attractive dividend that increases in line with RPI over the long term. It invests in solar photovoltaic plants or debt financing through its subsidiaries and generates revenues from the sale of electricity.
35GF Score
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