ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Babcock International Group's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN2,015 Mil.
Babcock International Group's average Total Assets over the quarter that ended in Mar. 2026 was MXN95,114 Mil. Therefore, Babcock International Group's annualized ROA % for the quarter that ended in Mar. 2026 was 2.12%.
The historical rank and industry rank for Babcock International Group's ROA % or its related term are showing as below:
MEX:BABBN'
s ROA % Range Over the Past 10 Years
Min: -28.94 Med: 4.22 Max: 6.87
Current: 5.52
During the past 13 years, Babcock International Group's highest ROA % was 6.87%. The lowest was -28.94%. And the median was 4.22%.
MEX:BABBN's ROA % is ranked better than 69.47% of 1782
companies
in the Construction industry
Industry Median: 2.79
vs MEX:BABBN: 5.52
Babcock International Group (MEX:BABBN) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) 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 Engineering & Construction subindustry, Babcock International 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.
Babcock International Group ROA % vs Construction Industry
For the Construction industry and Industrials sector, Babcock International Group's ROA % distribution charts can be found below:
* The bar in red indicates where Babcock International 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Babcock International Group (MEX:BABBN) has a ROA % of 2.12% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Babcock International Group and its competitors. This is 50% below median its historical median of 4.22. According to the industry distribution chart, Babcock International Group ranks #544 out of 1782 companies in the Construction industry, placing it in the top 30.5%.
Is Babcock International Group's ROA % too high?
Babcock International Group's current ROA % of 2.12% is 50% below median its 10-year median of 4.22. The Construction industry median ROA % is 2.79. Babcock International Group's value of 2.12% is 24% below this industry median. Based on the distribution chart, Babcock International Group ranks #544 out of 1782 companies in the Construction industry, which is above the industry midpoint. Overall, Babcock International Group has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Babcock International Group's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Babcock International Group ranks #544 out of 1782 companies for ROA %. This puts Babcock International Group in the upper half of its industry. The industry median ROA % is 2.79. Babcock International Group's value of 2.12% is 24% below this benchmark. While the company's 10-year median is 4.22 vs. the industry median of 2.79, Babcock International Group 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 a Construction company?
The median ROA % among Construction companies is 2.79, based on 1,782 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. Babcock International Group's current ROA % of 2.12% is 24% 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 Babcock International Group and its competitors. For the Construction industry, the median ROA % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Babcock International Group's current ROA % is 2.12%, which is 50% below median its own 10-year median of 4.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Babcock International Group stock overvalued right now?
Babcock International Group (MEX:BABBN) has a current ROA % of 2.12%. The stock's GF Value™ is MXN52.85, compared to a current price of MXN82.68 — trading 56.4% above its estimated fair value. The current ROA % is 2.12%, which is 50% below median its 10-year median of 4.22 and 24% below the Construction industry median of 2.79. Babcock International Group's overall GF Score™ is 67/100 with 2 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 Babcock International Group (MEX:BABBN), the current ROA % is 2.12% as of Mar. 2026. 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 Babcock International Group (MEX:BABBN) Overvalued in 2026?
Based on GuruFocus' analysis, Babcock International Group stock appears to be overvalued.
The current stock price of MXN82.68 is trading 56.4% above its estimated GF Value™ of MXN52.85.
Key valuation signals for MEX:BABBN:
ROA %: 2.12% (50% below median its 10-year median of 4.22)
GF Value™: MXN52.85 vs. price of MXN82.68 (56.4% above fair value)
Industry Position: 24% below the Construction median (#544 of 1782)
No single metric tells the full story. See the MEX:BABBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Babcock International Group PLC is a British engineering company specializing in the construction and decommissioning of nuclear power plants and submarines; maintenance support; fleet management for aviation, marine, and land; and provision of technical training and emergency services. The company's operating segments include Marine, Land, Aviation, and Nuclear. It generates maximum revenue from the Nuclear segment, which is engaged in providing engineering support to the United Kingdom's nuclear submarine fleet, decommissioning nuclear facilities, supporting nuclear generation, and new build projects. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in the Rest of Europe, Africa, North America, Australasia, and the Rest of the World.
67GF Score
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