TXT e-solutions SpAMIL:TXT +0.14%94 ROA % is 3.88% as of Mar. 2026, which is 12% below its 10-year median of 4.39. GuruFocus rates MIL:TXT with a GF Score™ of 94/100 and a GF Value™ of €38.92 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,883 Software companies, TXT e-solutions SpA ranks better than 63.58% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. TXT e-solutions SpA's annualizedNet Income for the quarter that ended in Mar. 2026 was €21.4 Mil.
TXT e-solutions SpA's average Total Assets over the quarter that ended in Mar. 2026 was €551.9 Mil. Therefore, TXT e-solutions SpA's annualized ROA % for the quarter that ended in Mar. 2026 was 3.88%.
The historical rank and industry rank for TXT e-solutions SpA's ROA % or its related term are showing as below:
MIL:TXT'
s ROA % Range Over the Past 10 Years
Min: 0.2 Med: 4.39 Max: 75.84
Current: 4.57
During the past 13 years, TXT e-solutions SpA's highest ROA % was 75.84%. The lowest was 0.20%. And the median was 4.39%.
MIL:TXT's ROA % is ranked better than 63.58% of 2883
companies
in the Software industry
Industry Median: 1.68
vs MIL:TXT: 4.57
TXT e-solutions SpA (MIL:TXT) 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.
TXT e-solutions SpA ROA % Related Terms
TXT e-solutions SpA ROA % Historical Data
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The historical data trend for TXT e-solutions 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 Software - Application subindustry, TXT e-solutions 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.
TXT e-solutions SpA ROA % vs Software Industry
For the Software industry and Technology sector, TXT e-solutions SpA's ROA % distribution charts can be found below:
* The bar in red indicates where TXT e-solutions 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.
TXT e-solutions SpA (MIL:TXT) has a ROA % of 3.88% 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 TXT e-solutions SpA and its competitors. This is 12% below median its historical median of 4.39. Over the past decade, TXT e-solutions SpA's ROA % has ranged from 0.20 to 75.84. According to the industry distribution chart, TXT e-solutions SpA ranks #1050 out of 2883 companies in the Software industry, placing it in the top 36.4%.
Is TXT e-solutions SpA's ROA % too high?
TXT e-solutions SpA's current ROA % of 3.88% is 12% below median its 10-year median of 4.39. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 75.84. The Software industry median ROA % is 1.68. TXT e-solutions SpA's value of 3.88% is 131% above this industry median. Based on the distribution chart, TXT e-solutions SpA ranks #1050 out of 2883 companies in the Software industry, which is above the industry midpoint. Overall, TXT e-solutions SpA has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TXT e-solutions SpA's ROA % compare to CRM and SHOP?
According to the Software industry distribution chart, TXT e-solutions SpA ranks #1050 out of 2883 companies for ROA %. This puts TXT e-solutions SpA in the upper half of its industry. The industry median ROA % is 1.68. TXT e-solutions SpA's value of 3.88% is 131% above this benchmark. Historically, TXT e-solutions SpA's own ROA % has ranged from 0.20 to 75.84 over the past decade. While the company's 10-year median is 4.39 vs. the industry median of 1.68, TXT e-solutions 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 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. TXT e-solutions SpA's current ROA % of 3.88% is 131% 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 TXT e-solutions SpA 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. TXT e-solutions SpA's current ROA % is 3.88%, which is 12% below median its own 10-year median of 4.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TXT e-solutions SpA stock overvalued right now?
Based on GuruFocus' analysis, TXT e-solutions SpA (MIL:TXT) is currently considered Fairly Valued. The stock's GF Value™ is €38.92, compared to a current price of €36.05 — trading 7.4% below its estimated fair value. The current ROA % is 3.88%, which is 12% below median its 10-year median of 4.39 and 131% above the Software industry median of 1.68. TXT e-solutions SpA's overall GF Score™ is 94/100 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 TXT e-solutions SpA (MIL:TXT), the current ROA % is 3.88% 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 TXT e-solutions SpA (MIL:TXT) Overvalued in 2026?
Based on GuruFocus' analysis, TXT e-solutions SpA stock appears to be undervalued.
The current stock price of €36.05 is trading 7.4% below its estimated GF Value™ of €38.92.
GuruFocus considers TXT e-solutions SpA to be Fairly Valued.
Key valuation signals for MIL:TXT:
ROA %: 3.88% (12% below median its 10-year median of 4.39)
GF Value™: €38.92 vs. price of €36.05 (7.4% below fair value)
Industry Position: 131% above the Software median (#1050 of 2883)
No single metric tells the full story. See the MIL:TXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TXT e-solutions SpA is an Italy-based company. The company provides three operating segments: Smart Solutions, Software Engineering, and Digital Advisory. The smart solution segment includes the activities of TXT Risk Solutions, Assiopay, and Working Capital Solution. D.M. Management and Consulting, etc. Software Engineering includes e-tech Srl, Ennova Group, TXT e-swiss, and Fascode S.P.A. Digital Advisory includes companies such as HSPI, PGMD Consulting, Tlogos, etc. The majority of revenue is from Software Engineering. Geographically, it has a presence in Italy, Germany, the United Kingdom, France, Switzerland, and the USA.
94GF Score
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