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Magnolia Oil & GasMGY +2.55%93 ROA % is 23.90% as of Jun. 2026, which is 95% above its 10-year median of 12.25. GuruFocus rates MGY with a GF Score™ of 93/100 and a GF Value™ of $29.06 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,038 Oil & Gas companies, Magnolia Oil & Gas ranks better than 91.71% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Magnolia Oil & Gas's annualizedNet Income for the quarter that ended in Jun. 2026 was $727 Mil.
Magnolia Oil & Gas's average Total Assets over the quarter that ended in Jun. 2026 was $3,043 Mil. Therefore, Magnolia Oil & Gas's annualized ROA % for the quarter that ended in Jun. 2026 was 23.90%.
The historical rank and industry rank for Magnolia Oil & Gas's ROA % or its related term are showing as below:
MGY'
s ROA % Range Over the Past 10 Years
Min: -49.12 Med: 12.25 Max: 41.39
Current: 14.41
During the past 10 years, Magnolia Oil & Gas's highest ROA % was 41.39%. The lowest was -49.12%. And the median was 12.25%.
MGY's ROA % is ranked better than 91.71% of 1038
companies
in the Oil & Gas industry
Industry Median: 2.15
vs MGY: 14.41
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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Magnolia Oil & Gas ROA % Related Terms
Magnolia Oil & Gas ROA % Historical Data
* Premium members only.
The historical data trend for Magnolia Oil & Gas'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 Oil & Gas E&P subindustry, Magnolia Oil & Gas'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.
Magnolia Oil & Gas ROA % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Magnolia Oil & Gas's ROA % distribution charts can be found below:
* The bar in red indicates where Magnolia Oil & Gas'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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Magnolia Oil & Gas (MGY) has a ROA % of 23.90% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Magnolia Oil & Gas and its competitors. This is 95% above median its historical median of 12.25. According to the industry distribution chart, Magnolia Oil & Gas ranks #86 out of 1038 companies in the Oil & Gas industry, placing it in the top 8.3%.
Is Magnolia Oil & Gas' ROA % too high?
Magnolia Oil & Gas' current ROA % of 23.90% is 95% above median its 10-year median of 12.25. The Oil & Gas industry median ROA % is 2.15. Magnolia Oil & Gas' value of 23.90% is 1011.6% above this industry median. Based on the distribution chart, Magnolia Oil & Gas ranks #86 out of 1038 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Magnolia Oil & Gas has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Magnolia Oil & Gas' ROA % compare to MUR and MTDR?
According to the Oil & Gas industry distribution chart, Magnolia Oil & Gas ranks #86 out of 1038 companies for ROA %. This places Magnolia Oil & Gas in the top 8% of its industry — outperforming the majority of peers. The industry median ROA % is 2.15. Magnolia Oil & Gas' value of 23.90% is 1011.6% above this benchmark. While the company's 10-year median is 12.25 vs. the industry median of 2.15, Magnolia Oil & Gas 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 Oil & Gas company?
The median ROA % among Oil & Gas companies is 2.15, based on 1,038 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. Magnolia Oil & Gas's current ROA % of 23.90% is 1011.6% 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 Magnolia Oil & Gas and its competitors. For the Oil & Gas industry, the median ROA % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magnolia Oil & Gas's current ROA % is 23.90%, which is 95% above median its own 10-year median of 12.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magnolia Oil & Gas stock overvalued right now?
Based on GuruFocus' analysis, Magnolia Oil & Gas (MGY) is currently considered Modestly Undervalued. The stock's GF Value™ is $29.06, compared to a current price of $25.72 — trading 11.5% below its estimated fair value. The current ROA % is 23.90%, which is 95% above median its 10-year median of 12.25 and 1011.6% above the Oil & Gas industry median of 2.15. Magnolia Oil & Gas' overall GF Score™ is 93/100 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 Magnolia Oil & Gas (MGY), the current ROA % is 23.90% as of Jun. 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 Magnolia Oil & Gas (MGY) Overvalued in 2026?
Based on GuruFocus' analysis, Magnolia Oil & Gas stock appears to be undervalued.
The current stock price of $25.72 is trading 11.5% below its estimated GF Value™ of $29.06.
GuruFocus considers Magnolia Oil & Gas to be Modestly Undervalued.
Key valuation signals for MGY:
ROA %: 23.90% (95% above median its 10-year median of 12.25)
GF Value™: $29.06 vs. price of $25.72 (11.5% below fair value)
Industry Position: 1011.6% above the Oil & Gas median (#86 of 1038)
No single metric tells the full story. See the MGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magnolia Oil & Gas Corp is an independent oil and natural gas company engaged in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids (NGL) reserves. The company's oil and natural gas properties are located in Karnes County and the Giddings area of South Texas, where it targets the Eagle Ford Shale and Austin Chalk formations. It focuses on generating value for shareholders by delivering steady, moderate annual production growth resulting from its capital spending philosophy. The company operates in only one segment and derives the majority of its revenue from the sale of crude oil, natural gas, and natural gas liquids (NGLs).
93GF Score
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