ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NEP Group's annualizedNet Income for the quarter that ended in Dec. 2014 was $-41.22 Mil.
NEP Group's average Total Assets over the quarter that ended in Dec. 2014 was $998.44 Mil. Therefore, NEP Group's annualized ROA % for the quarter that ended in Dec. 2014 was -4.13%.
The historical rank and industry rank for NEP Group's ROA % or its related term are showing as below:
NEPG's ROA % is not ranked *
in the Media - Diversified industry.
Industry Median: 0.65 * Ranked among companies with meaningful ROA % only.
NEP Group (NYSE:NEPG) 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 one times the annual (Dec. 2014) net income data. The Revenue data used here is one times the annual (Dec. 2014) 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.
NEP Group ROA % Related Terms
NEP Group ROA % Historical Data
* Premium members only.
The historical data trend for NEP Group'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.
NEP Group ROA % Chart
NEP Group Annual Data
Trend
Dec13
Dec14
ROA %
-3.10
-4.13
NEP Group Semi-Annual Data
Dec13
Dec14
ROA %
-3.10
-4.13
NEPG vs CRCO, ASKH, PTSX: ROA % Comparison
For the Broadcasting subindustry, NEP Group'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.
NEP Group ROA % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, NEP Group's ROA % distribution charts can be found below:
* The bar in red indicates where NEP Group'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 one times the annual (Dec. 2014) net income data.
ROA % is displayed in the 30-year financial page.
NEP Group (NEPG) has a ROA % of -4.13% as of Dec. 2014. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on NEP Group and its competitors.
Is NEP Group's ROA % too high?
NEP Group's current ROA % is -4.13%.
How does NEP Group's ROA % compare to CRCO and ASKH?
NEP Group's ROA % of -4.13% can be compared against companies in the Media - Diversified industry. The industry median ROA % is 0.65. 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 Media - Diversified company?
The median ROA % among Media - Diversified companies is 0.65, based on 1,035 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. 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 NEP Group and its competitors. For the Media - Diversified industry, the median ROA % is 0.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEP Group's current ROA % is -4.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEP Group stock overvalued right now?
NEP Group (NEPG) has a current ROA % of -4.13%. The current ROA % is -4.13%. 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 NEP Group (NEPG), the current ROA % is -4.13% as of Dec. 2014. 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.
NEP Group Inc was founded on December 24, 2012. The Company is a provider of customized broadcast solutions to the live sports and entertainment markets offering various broadcast and live event services. The Company's engineers design live event solutions and work side-by-side with its clients to customize its solutions and provide real-time support during a broadcast or live event to ensure a seamlessly delivered production. The Company has developed a range of services operating inside and outside of the United States and has supported events. It serves the premium sports, entertainment and other live event production markets, where it offers mission-critical outsourced solutions, including remote production, studio production, video display and host broadcasting. It competes in three primary geographies: the United States, Europe and Australia, servicing the sports, entertainment and other live events markets. It competes against F&F Productions, Game Creek Video, Lyon Video and Mobile Television Group in the United States; Gearhouse Broadcast in Australia; CTV Outside Broadcasts and Telegenic in the U.K.; AMP Visuals, Euro Media Group, Mediapro Group and Top Vision in Continental Europe.
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