LSE:SAIN's ROA % is ranked worse than 62.2% of 1635
companies
in the Asset Management industry
Industry Median: 3.97
vs LSE:SAIN: 1.74
Scottish American Investment Co (The) (LSE:SAIN) 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.
Scottish American Investment Co (The) ROA % Related Terms
Scottish American Investment Co (The) ROA % Historical 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.
For the Asset Management subindustry, Scottish American Investment Co (The)'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.
Scottish American Investment Co (The) ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Scottish American Investment Co (The)'s ROA % distribution charts can be found below:
* The bar in red indicates where Scottish American Investment Co (The)'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.
Scottish American Investment Co (The) (LSE:SAIN) has a ROA % of 2.03% 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 Scottish American Investment Co (The) and its competitors. This is 82% below median its historical median of 10.99. According to the industry distribution chart, Scottish American Investment Co (The) ranks #1017 out of 1635 companies in the Asset Management industry, placing it in the top 62.2%.
Is Scottish American Investment Co (The)'s ROA % too high?
Scottish American Investment Co (The)'s current ROA % of 2.03% is 82% below median its 10-year median of 10.99. The Asset Management industry median ROA % is 3.97. Scottish American Investment Co (The)'s value of 2.03% is 48.9% below this industry median. Based on the distribution chart, Scottish American Investment Co (The) ranks #1017 out of 1635 companies in the Asset Management industry, which is below the industry midpoint. Overall, Scottish American Investment Co (The) has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Scottish American Investment Co (The)'s ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Scottish American Investment Co (The) ranks #1017 out of 1635 companies for ROA %. This places Scottish American Investment Co (The) in the lower half of its industry. The industry median ROA % is 3.97. Scottish American Investment Co (The)'s value of 2.03% is 48.9% below this benchmark. While the company's 10-year median is 10.99 vs. the industry median of 3.97, Scottish American Investment Co (The) 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. Scottish American Investment Co (The)'s current ROA % of 2.03% is 48.9% 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 Scottish American Investment Co (The) 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. Scottish American Investment Co (The)'s current ROA % is 2.03%, which is 82% below median its own 10-year median of 10.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scottish American Investment Co (The) stock overvalued right now?
Based on GuruFocus' analysis, Scottish American Investment Co (The) (LSE:SAIN) is currently considered Significantly Overvalued. The stock's GF Value™ is £1.27, compared to a current price of £5.35 — trading 321.3% above its estimated fair value. The current ROA % is 2.03%, which is 82% below median its 10-year median of 10.99 and 48.9% below the Asset Management industry median of 3.97. Scottish American Investment Co (The)'s overall GF Score™ is 37/100 with 5 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 Scottish American Investment Co (The) (LSE:SAIN), the current ROA % is 2.03% 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 Scottish American Investment Co (The) (LSE:SAIN) Overvalued in 2026?
Based on GuruFocus' analysis, Scottish American Investment Co (The) stock appears to be overvalued.
The current stock price of £5.35 is trading 321.3% above its estimated GF Value™ of £1.27.
GuruFocus considers Scottish American Investment Co (The) to be Significantly Overvalued.
Key valuation signals for LSE:SAIN:
ROA %: 2.03% (82% below median its 10-year median of 10.99)
GF Value™: £1.27 vs. price of £5.35 (321.3% above fair value)
Industry Position: 48.9% below the Asset Management median (#1017 of 1635)
No single metric tells the full story. See the LSE:SAIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Scottish American Investment Co (The) Business Description
Scottish American Investment Co (The) PLC is an investment trust operating in the UK. Its objective is to deliver real dividend growth by increasing capital and growing income. The company mainly invests in equity markets as well as investments in other financial instruments including bonds, property, and other asset classes. It holds a diversified portfolio of investments irrespective of any pre-defined maximum or minimum exposure levels for asset classes, sectors, or regions. The company focuses on investing in listed equities to grow its assets over the medium to the longer term at a faster rate than inflation. It may use derivatives and structured instruments to hedge an existing investment or currency exposure or to exploit an investment opportunity.
37GF Score
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