Target Healthcare REITLSE:THRL +2.12%32 ROA % is 9.59% as of Dec. 2025, which is 55% above its 10-year median of 6.19. GuruFocus rates LSE:THRL with a GF Score™ of 32/100 and a GF Value™ of £0.88 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 938 REITs companies, Target Healthcare REIT ranks better than 80.06% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Target Healthcare REIT's annualizedNet Income for the quarter that ended in Dec. 2025 was £94.09 Mil.
Target Healthcare REIT's average Total Assets over the quarter that ended in Dec. 2025 was £981.35 Mil. Therefore, Target Healthcare REIT's annualized ROA % for the quarter that ended in Dec. 2025 was 9.59%.
The historical rank and industry rank for Target Healthcare REIT's ROA % or its related term are showing as below:
LSE:THRL'
s ROA % Range Over the Past 10 Years
Min: -0.7 Med: 6.19 Max: 7.94
Current: 7.94
During the past 12 years, Target Healthcare REIT's highest ROA % was 7.94%. The lowest was -0.70%. And the median was 6.19%.
LSE:THRL's ROA % is ranked better than 80.06% of 938
companies
in the REITs industry
Industry Median: 3.23
vs LSE:THRL: 7.94
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 REIT - Healthcare Facilities subindustry, Target Healthcare REIT'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.
Target Healthcare REIT ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Target Healthcare REIT's ROA % distribution charts can be found below:
* The bar in red indicates where Target Healthcare REIT'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.
Target Healthcare REIT (LSE:THRL) has a ROA % of 9.59% 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 Target Healthcare REIT and its competitors. This is 55% above median its historical median of 6.19. According to the industry distribution chart, Target Healthcare REIT ranks #187 out of 938 companies in the REITs industry, placing it in the top 19.9%.
Is Target Healthcare REIT's ROA % too high?
Target Healthcare REIT's current ROA % of 9.59% is 55% above median its 10-year median of 6.19. The REITs industry median ROA % is 3.23. Target Healthcare REIT's value of 9.59% is 196.9% above this industry median. Based on the distribution chart, Target Healthcare REIT ranks #187 out of 938 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Target Healthcare REIT has a GF Score™ of 32/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Target Healthcare REIT's ROA % compare to WELL and VTR?
According to the REITs industry distribution chart, Target Healthcare REIT ranks #187 out of 938 companies for ROA %. This places Target Healthcare REIT in the top 20% of its industry — outperforming the majority of peers. The industry median ROA % is 3.23. Target Healthcare REIT's value of 9.59% is 196.9% above this benchmark. While the company's 10-year median is 6.19 vs. the industry median of 3.23, Target Healthcare REIT has consistently been above 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 a REITs company?
The median ROA % among REITs companies is 3.23, based on 938 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. Target Healthcare REIT's current ROA % of 9.59% is 196.9% above 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 Target Healthcare REIT and its competitors. For the REITs industry, the median ROA % is 3.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Target Healthcare REIT's current ROA % is 9.59%, which is 55% above median its own 10-year median of 6.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Target Healthcare REIT stock overvalued right now?
Based on GuruFocus' analysis, Target Healthcare REIT (LSE:THRL) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.88, compared to a current price of £1.06 — trading 20.7% above its estimated fair value. The current ROA % is 9.59%, which is 55% above median its 10-year median of 6.19 and 196.9% above the REITs industry median of 3.23. Target Healthcare REIT's overall GF Score™ is 32/100 with 7 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 Target Healthcare REIT (LSE:THRL), the current ROA % is 9.59% 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 Target Healthcare REIT (LSE:THRL) Overvalued in 2026?
Based on GuruFocus' analysis, Target Healthcare REIT stock appears to be overvalued.
The current stock price of £1.06 is trading 20.7% above its estimated GF Value™ of £0.88.
GuruFocus considers Target Healthcare REIT to be Modestly Overvalued.
Key valuation signals for LSE:THRL:
ROA %: 9.59% (55% above median its 10-year median of 6.19)
GF Value™: £0.88 vs. price of £1.06 (20.7% above fair value)
Industry Position: 196.9% above the REITs median (#187 of 938)
No single metric tells the full story. See the LSE:THRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Target Healthcare REIT PLC is an investment company that acts as a long-term investor in care homes in the United Kingdom. The investment objective of the company is to provide shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified portfolio of freehold and long-leasehold care homes, which are let to care home operators, and other healthcare assets in the United Kingdom.
32GF Score
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