SafaricomNAI:SCOM +1.97%100 ROA % is 20.58% as of Mar. 2026, which is 24% below its 10-year median of 27.16. GuruFocus rates NAI:SCOM with a GF Score™ of 100/100 and a GF Value™ of KES21.81 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 370 Telecommunication Services companies, Safaricom ranks better than 97.84% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Safaricom's annualizedNet Income for the quarter that ended in Mar. 2026 was KES105,657 Mil.
Safaricom's average Total Assets over the quarter that ended in Mar. 2026 was KES513,320 Mil. Therefore, Safaricom's annualized ROA % for the quarter that ended in Mar. 2026 was 20.58%.
The historical rank and industry rank for Safaricom's ROA % or its related term are showing as below:
NAI:SCOM'
s ROA % Range Over the Past 10 Years
Min: 10.95 Med: 27.16 Max: 36.31
Current: 18.6
During the past 13 years, Safaricom's highest ROA % was 36.31%. The lowest was 10.95%. And the median was 27.16%.
NAI:SCOM's ROA % is ranked better than 97.84% of 370
companies
in the Telecommunication Services industry
Industry Median: 2.69
vs NAI:SCOM: 18.60
Safaricom (NAI:SCOM) 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.
Safaricom ROA % Related Terms
Safaricom ROA % Historical Data
* Premium members only.
The historical data trend for Safaricom'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 Telecom Services subindustry, Safaricom'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.
Safaricom ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Safaricom's ROA % distribution charts can be found below:
* The bar in red indicates where Safaricom'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.
Safaricom (NAI:SCOM) has a ROA % of 20.58% 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 Safaricom and its competitors. This is 24% below median its historical median of 27.16. Over the past decade, Safaricom's ROA % has ranged from 10.95 to 36.31. According to the industry distribution chart, Safaricom ranks #8 out of 370 companies in the Telecommunication Services industry, placing it in the top 2.2%.
Is Safaricom's ROA % too high?
Safaricom's current ROA % of 20.58% is 24% below median its 10-year median of 27.16. Over the past 10 years, this metric has ranged from a low of 10.95 to a high of 36.31. The Telecommunication Services industry median ROA % is 2.69. Safaricom's value of 20.58% is 665.1% above this industry median. Based on the distribution chart, Safaricom ranks #8 out of 370 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Safaricom has a GF Score™ of 100/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Safaricom's ROA % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Safaricom ranks #8 out of 370 companies for ROA %. This places Safaricom in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 2.69. Safaricom's value of 20.58% is 665.1% above this benchmark. Historically, Safaricom's own ROA % has ranged from 10.95 to 36.31 over the past decade. While the company's 10-year median is 27.16 vs. the industry median of 2.69, Safaricom 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 Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.69, based on 370 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. Safaricom's current ROA % of 20.58% is 665.1% 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 Safaricom and its competitors. For the Telecommunication Services industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safaricom's current ROA % is 20.58%, which is 24% below median its own 10-year median of 27.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safaricom stock overvalued right now?
Based on GuruFocus' analysis, Safaricom (NAI:SCOM) is currently considered Significantly Overvalued. The stock's GF Value™ is KES21.81, compared to a current price of KES33.60 — trading 54.1% above its estimated fair value. The current ROA % is 20.58%, which is 24% below median its 10-year median of 27.16 and 665.1% above the Telecommunication Services industry median of 2.69. Safaricom's overall GF Score™ is 100/100 with 4 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 Safaricom (NAI:SCOM), the current ROA % is 20.58% 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 Safaricom (NAI:SCOM) Overvalued in 2026?
Based on GuruFocus' analysis, Safaricom stock appears to be overvalued.
The current stock price of KES33.60 is trading 54.1% above its estimated GF Value™ of KES21.81.
GuruFocus considers Safaricom to be Significantly Overvalued.
Key valuation signals for NAI:SCOM:
ROA %: 20.58% (24% below median its 10-year median of 27.16)
GF Value™: KES21.81 vs. price of KES33.60 (54.1% above fair value)
Industry Position: 665.1% above the Telecommunication Services median (#8 of 370)
No single metric tells the full story. See the NAI:SCOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Safaricom PLC is a Kenya-based telecommunications company. The principal activities of the company are the provision of telecommunication services, providing a comprehensive range of integrated telecommunication services including voice and data both mobile and fixed, SMS, the internet, and m-pesa. The company also offers a wide range of devices such as Mobile handsets, mobile broadband modems, routers, tablets, and notebooks. The majority of its revenue comes from service revenues: Voice, m-pesa, mobile data, messaging, fixed data and other service revenue. The company serves both individual and corporate/enterprise customers.
100GF Score
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