MicroAlgoMLGO -4.27%58 ROA % is 7.35% as of Dec. 2025, which is 37% above its 10-year median of 5.37. GuruFocus rates MLGO with a GF Score™ of 58/100 and a GF Value™ of $1.51 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,885 Software companies, MicroAlgo ranks better than 67.87% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. MicroAlgo's annualizedNet Income for the quarter that ended in Dec. 2025 was $25.02 Mil.
MicroAlgo's average Total Assets over the quarter that ended in Dec. 2025 was $340.58 Mil. Therefore, MicroAlgo's annualized ROA % for the quarter that ended in Dec. 2025 was 7.35%.
The historical rank and industry rank for MicroAlgo's ROA % or its related term are showing as below:
MLGO'
s ROA % Range Over the Past 10 Years
Min: -58.24 Med: 5.37 Max: 18.96
Current: 5.67
During the past 6 years, MicroAlgo's highest ROA % was 18.96%. The lowest was -58.24%. And the median was 5.37%.
MLGO's ROA % is ranked better than 67.87% of 2885
companies
in the Software industry
Industry Median: 1.68
vs MLGO: 5.67
MicroAlgo (NAS:MLGO) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 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.
MicroAlgo ROA % Related Terms
MicroAlgo ROA % Historical Data
* Premium members only.
The historical data trend for MicroAlgo'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 - Infrastructure subindustry, MicroAlgo'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.
MicroAlgo ROA % vs Software Industry
For the Software industry and Technology sector, MicroAlgo's ROA % distribution charts can be found below:
* The bar in red indicates where MicroAlgo'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
MicroAlgo (MLGO) has a ROA % of 7.35% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on MicroAlgo and its competitors. This is 37% above median its historical median of 5.37. According to the industry distribution chart, MicroAlgo ranks #927 out of 2885 companies in the Software industry, placing it in the top 32.1%.
Is MicroAlgo's ROA % too high?
MicroAlgo's current ROA % of 7.35% is 37% above median its 10-year median of 5.37. The Software industry median ROA % is 1.68. MicroAlgo's value of 7.35% is 337.5% above this industry median. Based on the distribution chart, MicroAlgo ranks #927 out of 2885 companies in the Software industry, which is above the industry midpoint. Overall, MicroAlgo has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MicroAlgo's ROA % compare to RMXI and AGPU?
According to the Software industry distribution chart, MicroAlgo ranks #927 out of 2885 companies for ROA %. This puts MicroAlgo in the upper half of its industry. The industry median ROA % is 1.68. MicroAlgo's value of 7.35% is 337.5% above this benchmark. While the company's 10-year median is 5.37 vs. the industry median of 1.68, MicroAlgo 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 2,885 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. MicroAlgo's current ROA % of 7.35% is 337.5% 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 MicroAlgo 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. MicroAlgo's current ROA % is 7.35%, which is 37% above median its own 10-year median of 5.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MicroAlgo stock overvalued right now?
Based on GuruFocus' analysis, MicroAlgo (MLGO) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.51, compared to a current price of $4.07 — trading 169.5% above its estimated fair value. The current ROA % is 7.35%, which is 37% above median its 10-year median of 5.37 and 337.5% above the Software industry median of 1.68. MicroAlgo's overall GF Score™ is 58/100 with 7 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 MicroAlgo (MLGO), the current ROA % is 7.35% as of Dec. 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.
Is MicroAlgo (MLGO) Overvalued in 2026?
Based on GuruFocus' analysis, MicroAlgo stock appears to be overvalued.
The current stock price of $4.07 is trading 169.5% above its estimated GF Value™ of $1.51.
GuruFocus considers MicroAlgo to be Significantly Overvalued.
Key valuation signals for MLGO:
ROA %: 7.35% (37% above median its 10-year median of 5.37)
GF Value™: $1.51 vs. price of $4.07 (169.5% above fair value)
Industry Position: 337.5% above the Software median (#927 of 2885)
No single metric tells the full story. See the MLGO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MicroAlgo Inc is engaged in the development and application of bespoke central processing algorithms and provides solutions by integrating these algorithms with software or hardware, or both, to streamline digital services. Its services include algorithm optimization, accelerating computing power without hardware upgrades, lightweight data processing, and data intelligence services. Its technology and solutions are mainly in internet multimedia video advertising, where it provides advertising distribution solutions, software services, comprehensive solutions for enterprise customers, and intelligent chips solutions. It derives revenue from central processing algorithm services for internet advertisement and intelligent chips and services, with maximum revenue generated from Mainland PRC.
58GF Score
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