LSE:SWEF's ROA % is not ranked
in the Asset Management industry.
Industry Median: 4
vs LSE:SWEF: -1.51
Starwood European Real Estate Finance (LSE:SWEF) 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 (Jun. 2025) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
Starwood European Real Estate Finance ROA % Related Terms
Starwood European Real Estate Finance 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, Starwood European Real Estate Finance'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.
Starwood European Real Estate Finance ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Starwood European Real Estate Finance's ROA % distribution charts can be found below:
* The bar in red indicates where Starwood European Real Estate Finance'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 (Jun. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Starwood European Real Estate Finance (LSE:SWEF) has a ROA % of 0.05% as of Jun. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Starwood European Real Estate Finance and its competitors. This is 99% below median its historical median of 6.61.
Is Starwood European Real Estate Finance's ROA % too high?
Starwood European Real Estate Finance's current ROA % of 0.05% is 99% below median its 10-year median of 6.61. The Asset Management industry median ROA % is 4.00. Starwood European Real Estate Finance's value of 0.05% is 98.8% below this industry median. Overall, Starwood European Real Estate Finance has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Starwood European Real Estate Finance's ROA % compare to BLK and BX?
Starwood European Real Estate Finance's ROA % of 0.05% can be compared against companies in the Asset Management industry. The industry median ROA % is 4.00. Starwood European Real Estate Finance's value of 0.05% is 98.8% below this benchmark. While the company's 10-year median is 6.61 vs. the industry median of 4.00, Starwood European Real Estate Finance 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 4.00, based on 1,632 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. Starwood European Real Estate Finance's current ROA % of 0.05% is 98.8% 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 Starwood European Real Estate Finance and its competitors. For the Asset Management industry, the median ROA % is 4.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starwood European Real Estate Finance's current ROA % is 0.05%, which is 99% below median its own 10-year median of 6.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Starwood European Real Estate Finance stock overvalued right now?
Starwood European Real Estate Finance (LSE:SWEF) has a current ROA % of 0.05%. The stock's GF Value™ is £1.06, compared to a current price of £0.92 — trading 13.7% below its estimated fair value. The current ROA % is 0.05%, which is 99% below median its 10-year median of 6.61 and 98.8% below the Asset Management industry median of 4.00. Starwood European Real Estate Finance's overall GF Score™ is 48/100 with 4 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 Starwood European Real Estate Finance (LSE:SWEF), the current ROA % is 0.05% as of Jun. 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 Starwood European Real Estate Finance (LSE:SWEF) Overvalued in 2026?
Based on GuruFocus' analysis, Starwood European Real Estate Finance stock appears to be undervalued.
The current stock price of £0.92 is trading 13.7% below its estimated GF Value™ of £1.06.
Key valuation signals for LSE:SWEF:
ROA %: 0.05% (99% below median its 10-year median of 6.61)
GF Value™: £1.06 vs. price of £0.92 (13.7% below fair value)
Industry Position: 98.8% below the Asset Management median
No single metric tells the full story. See the LSE:SWEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Starwood European Real Estate Finance Business Description
Starwood European Real Estate Finance Ltd is a closed-ended investment company. Its investment objective is to provide its shareholders with regular dividends and an attractive total return while limiting downside risk, through the origination, execution, acquisition, and servicing of a diversified portfolio of real estate debt investments in the UK and wider European Union's internal markets. Its portfolio focuses on lending into commercial real estate sectors including office, retail, logistics, Healthcare, Residential, light industrial, and hospitality. The company invests in a diversified portfolio of commercial real estate debt investments in the UK and Continental Europe.
48GF Score
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