Ermes Department StoresLTS:0GZY ROA % is 23.83% as of Jun. 2025. The stock has 4 warning signs investors should review. Among 1,129 Retail - Cyclical companies, Ermes Department Stores ranks better than 72.01% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ermes Department Stores's annualizedNet Income for the quarter that ended in Jun. 2025 was €30.69 Mil.
Ermes Department Stores's average Total Assets over the quarter that ended in Jun. 2025 was €128.82 Mil. Therefore, Ermes Department Stores's annualized ROA % for the quarter that ended in Jun. 2025 was 23.83%.
The historical rank and industry rank for Ermes Department Stores's ROA % or its related term are showing as below:
LTS:0GZY'
s ROA % Range Over the Past 10 Years
Min: -16.28 Med: -2.59 Max: -1.06
Current: 6.33
During the past 13 years, Ermes Department Stores's highest ROA % was -1.06%. The lowest was -16.28%. And the median was -2.59%.
LTS:0GZY's ROA % is ranked better than 72.01% of 1129
companies
in the Retail - Cyclical industry
Industry Median: 2.72
vs LTS:0GZY: 6.33
Ermes Department Stores (LTS:0GZY) 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.
* 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 Department Stores subindustry, Ermes Department Stores'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.
Ermes Department Stores ROA % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ermes Department Stores's ROA % distribution charts can be found below:
* The bar in red indicates where Ermes Department Stores'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.
Ermes Department Stores (LTS:0GZY) has a ROA % of 23.83% 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 Ermes Department Stores and its competitors. According to the industry distribution chart, Ermes Department Stores ranks #316 out of 1129 companies in the Retail - Cyclical industry, placing it in the top 28%.
Is Ermes Department Stores' ROA % too high?
Ermes Department Stores' current ROA % is 23.83%. The Retail - Cyclical industry median ROA % is 2.72. Ermes Department Stores' value of 23.83% is 776.1% above this industry median. Based on the distribution chart, Ermes Department Stores ranks #316 out of 1129 companies in the Retail - Cyclical industry, which is above the industry midpoint.
How does Ermes Department Stores' ROA % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Ermes Department Stores ranks #316 out of 1129 companies for ROA %. This puts Ermes Department Stores in the upper half of its industry. The industry median ROA % is 2.72. Ermes Department Stores' value of 23.83% is 776.1% above this benchmark. 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 Retail - Cyclical company?
The median ROA % among Retail - Cyclical companies is 2.72, based on 1,129 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. Ermes Department Stores's current ROA % of 23.83% is 776.1% 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 Ermes Department Stores and its competitors. For the Retail - Cyclical industry, the median ROA % is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ermes Department Stores's current ROA % is 23.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ermes Department Stores stock overvalued right now?
Ermes Department Stores (LTS:0GZY) has a current ROA % of 23.83%. The current ROA % is 23.83% and 776.1% above the Retail - Cyclical industry median of 2.72. 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 Ermes Department Stores (LTS:0GZY), the current ROA % is 23.83% 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.
Ermes Department Stores PLC is engaged in operation of department stores. It sells fashion, cosmetics, toys, home goods and other goods and services for all ages and the family.
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