Wise GroupLSE:WISE -1.05%89 ROA % is 1.81% as of Sep. 2025, which is 89% above its 10-year median of 0.96. GuruFocus rates LSE:WISE with a GF Score™ of 89/100 and a GF Value™ of £12.40 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,883 Software companies, Wise Group ranks better than 51.4% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Wise Group's annualizedNet Income for the quarter that ended in Sep. 2025 was £374 Mil.
Wise Group's average Total Assets over the quarter that ended in Sep. 2025 was £20,679 Mil. Therefore, Wise Group's annualized ROA % for the quarter that ended in Sep. 2025 was 1.81%.
The historical rank and industry rank for Wise Group's ROA % or its related term are showing as below:
LSE:WISE'
s ROA % Range Over the Past 10 Years
Min: 0.54 Med: 0.96 Max: 2.68
Current: 2
During the past 7 years, Wise Group's highest ROA % was 2.68%. The lowest was 0.54%. And the median was 0.96%.
LSE:WISE's ROA % is ranked better than 51.4% of 2883
companies
in the Software industry
Industry Median: 1.68
vs LSE:WISE: 2.00
Wise Group (LSE:WISE) 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 (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 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.
Wise Group ROA % Related Terms
Wise Group ROA % Historical Data
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The historical data trend for Wise Group's ROA % can be seen below:
* 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 Information Technology Services subindustry, Wise Group'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.
Wise Group ROA % vs Software Industry
For the Software industry and Technology sector, Wise Group's ROA % distribution charts can be found below:
* The bar in red indicates where Wise Group'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 (Sep. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Wise Group (LSE:WISE) has a ROA % of 1.81% as of Sep. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Wise Group and its competitors. This is 89% above median its historical median of 0.96. Over the past decade, Wise Group's ROA % has ranged from 0.54 to 2.68. According to the industry distribution chart, Wise Group ranks #1401 out of 2883 companies in the Software industry, placing it in the top 48.6%.
Is Wise Group's ROA % too high?
Wise Group's current ROA % of 1.81% is 89% above median its 10-year median of 0.96. Over the past 10 years, this metric has ranged from a low of 0.54 to a high of 2.68. The Software industry median ROA % is 1.68. Wise Group's value of 1.81% is 7.7% above this industry median. Based on the distribution chart, Wise Group ranks #1401 out of 2883 companies in the Software industry, which is above the industry midpoint. Overall, Wise Group has a GF Score™ of 89/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wise Group's ROA % compare to APLD and CACI?
According to the Software industry distribution chart, Wise Group ranks #1401 out of 2883 companies for ROA %. This puts Wise Group in the upper half of its industry. The industry median ROA % is 1.68. Wise Group's value of 1.81% is 7.7% above this benchmark. Historically, Wise Group's own ROA % has ranged from 0.54 to 2.68 over the past decade. While the company's 10-year median is 0.96 vs. the industry median of 1.68, Wise Group 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 Software company?
The median ROA % among Software companies is 1.68, based on 2,883 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. Wise Group's current ROA % of 1.81% is 7.7% 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 Wise Group and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wise Group's current ROA % is 1.81%, which is 89% above median its own 10-year median of 0.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wise Group stock overvalued right now?
Based on GuruFocus' analysis, Wise Group (LSE:WISE) is currently considered Possible Value Trap. The stock's GF Value™ is £12.40, compared to a current price of £8.30 — trading 33.1% below its estimated fair value. The current ROA % is 1.81%, which is 89% above median its 10-year median of 0.96 and 7.7% above the Software industry median of 1.68. Wise Group's overall GF Score™ is 89/100 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 Wise Group (LSE:WISE), the current ROA % is 1.81% as of Sep. 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 Wise Group (LSE:WISE) Overvalued in 2026?
Based on GuruFocus' analysis, Wise Group stock appears to be undervalued.
The current stock price of £8.30 is trading 33.1% below its estimated GF Value™ of £12.40.
GuruFocus considers Wise Group to be Possible Value Trap.
Key valuation signals for LSE:WISE:
ROA %: 1.81% (89% above median its 10-year median of 0.96)
GF Value™: £12.40 vs. price of £8.30 (33.1% below fair value)
Industry Position: 7.7% above the Software median (#1401 of 2883)
No single metric tells the full story. See the LSE:WISE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wise is a currency conversion platform that matches, where possible, offsetting currency transactions across borders to reduce costs. The group focuses primarily on private clients and small and midsize enterprises, but it is building out its platform business aimed at providing its services as a backend solution to banks. By operating local accounts in each jurisdiction Wise sends money to or receives money from, this fintech offers faster and cheaper currency transfer services than incumbents (banks). Wise has started to broaden its product offering, issuing its clients debit cards and allowing customers to invest funds in various asset management products.
89GF Score
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