Hera SpAMEX:HERN 56 ROA % is 4.17% as of Mar. 2026, which is 44% above its 10-year median of 2.89. GuruFocus rates MEX:HERN with a GF Score™ of 56/100 and a GF Value™ of MXN70.12 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 511 Utilities - Regulated companies, Hera SpA ranks better than 51.86% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hera SpA's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN12,892 Mil.
Hera SpA's average Total Assets over the quarter that ended in Mar. 2026 was MXN308,824 Mil. Therefore, Hera SpA's annualized ROA % for the quarter that ended in Mar. 2026 was 4.17%.
The historical rank and industry rank for Hera SpA's ROA % or its related term are showing as below:
MEX:HERN'
s ROA % Range Over the Past 10 Years
Min: 1.64 Med: 2.89 Max: 3.96
Current: 3.17
During the past 13 years, Hera SpA's highest ROA % was 3.96%. The lowest was 1.64%. And the median was 2.89%.
MEX:HERN's ROA % is ranked better than 51.86% of 511
companies
in the Utilities - Regulated industry
Industry Median: 3.02
vs MEX:HERN: 3.17
Hera SpA (MEX:HERN) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (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.
Hera SpA ROA % Related Terms
Hera SpA ROA % Historical Data
* Premium members only.
The historical data trend for Hera SpA'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 Utilities - Diversified subindustry, Hera SpA'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.
Hera SpA ROA % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hera SpA's ROA % distribution charts can be found below:
* The bar in red indicates where Hera SpA'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 four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Hera SpA (MEX:HERN) has a ROA % of 4.17% 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 Hera SpA and its competitors. This is 44% above median its historical median of 2.89. Over the past decade, Hera SpA's ROA % has ranged from 1.64 to 3.96. According to the industry distribution chart, Hera SpA ranks #246 out of 511 companies in the Utilities - Regulated industry, placing it in the top 48.1%.
Is Hera SpA's ROA % too high?
Hera SpA's current ROA % of 4.17% is 44% above median its 10-year median of 2.89. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 3.96. The Utilities - Regulated industry median ROA % is 3.02. Hera SpA's value of 4.17% is 38.1% above this industry median. Based on the distribution chart, Hera SpA ranks #246 out of 511 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Hera SpA has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hera SpA's ROA % compare to SRE?
According to the Utilities - Regulated industry distribution chart, Hera SpA ranks #246 out of 511 companies for ROA %. This puts Hera SpA in the upper half of its industry. The industry median ROA % is 3.02. Hera SpA's value of 4.17% is 38.1% above this benchmark. Historically, Hera SpA's own ROA % has ranged from 1.64 to 3.96 over the past decade. While the company's 10-year median is 2.89 vs. the industry median of 3.02, Hera SpA 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 an Utilities - Regulated company?
The median ROA % among Utilities - Regulated companies is 3.02, based on 511 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. Hera SpA's current ROA % of 4.17% is 38.1% 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 Hera SpA and its competitors. For the Utilities - Regulated industry, the median ROA % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hera SpA's current ROA % is 4.17%, which is 44% above median its own 10-year median of 2.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hera SpA stock overvalued right now?
Based on GuruFocus' analysis, Hera SpA (MEX:HERN) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN70.12, compared to a current price of MXN81.23 — trading 15.8% above its estimated fair value. The current ROA % is 4.17%, which is 44% above median its 10-year median of 2.89 and 38.1% above the Utilities - Regulated industry median of 3.02. Hera SpA's overall GF Score™ is 56/100 with 5 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 Hera SpA (MEX:HERN), the current ROA % is 4.17% 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 Hera SpA (MEX:HERN) Overvalued in 2026?
Based on GuruFocus' analysis, Hera SpA stock appears to be overvalued.
The current stock price of MXN81.23 is trading 15.8% above its estimated GF Value™ of MXN70.12.
GuruFocus considers Hera SpA to be Modestly Overvalued.
Key valuation signals for MEX:HERN:
ROA %: 4.17% (44% above median its 10-year median of 2.89)
GF Value™: MXN70.12 vs. price of MXN81.23 (15.8% above fair value)
Industry Position: 38.1% above the Utilities - Regulated median (#246 of 511)
No single metric tells the full story. See the MEX:HERN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hera SpA is an Italian coalescence of municipally owned companies that manages the supply of energy, water and environmental services, as well as public lighting and telecommunications to citizens and businesses. The company operates mainly in Italy in the waste management (waste management and treatment), water (aqueduct, sewerage and purification) and energy (distribution and sale of electricity, gas and energy services) sectors; it also offers services for public lighting and telecommunications.
56GF Score
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