Solution DynamicsNZSE:SDL +5.17%59 ROA % is 2.41% as of Dec. 2025, which is 86% below its 10-year median of 17.64. GuruFocus rates NZSE:SDL with a GF Score™ of 59/100 and a GF Value™ of NZ$0.99 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,882 Software companies, Solution Dynamics ranks better than 55.24% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Solution Dynamics's annualizedNet Income for the quarter that ended in Dec. 2025 was NZ$0.43 Mil.
Solution Dynamics's average Total Assets over the quarter that ended in Dec. 2025 was NZ$17.80 Mil. Therefore, Solution Dynamics's annualized ROA % for the quarter that ended in Dec. 2025 was 2.41%.
The historical rank and industry rank for Solution Dynamics's ROA % or its related term are showing as below:
NZSE:SDL'
s ROA % Range Over the Past 10 Years
Min: 2.69 Med: 17.64 Max: 22.4
Current: 2.69
During the past 13 years, Solution Dynamics's highest ROA % was 22.40%. The lowest was 2.69%. And the median was 17.64%.
NZSE:SDL's ROA % is ranked better than 55.24% of 2882
companies
in the Software industry
Industry Median: 1.645
vs NZSE:SDL: 2.69
Solution Dynamics (NZSE:SDL) 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.
Solution Dynamics ROA % Related Terms
Solution Dynamics ROA % Historical Data
* Premium members only.
The historical data trend for Solution Dynamics'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, Solution Dynamics'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.
Solution Dynamics ROA % vs Software Industry
For the Software industry and Technology sector, Solution Dynamics's ROA % distribution charts can be found below:
* The bar in red indicates where Solution Dynamics'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.
Solution Dynamics (NZSE:SDL) has a ROA % of 2.41% 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 Solution Dynamics and its competitors. This is 86% below median its historical median of 17.64. Over the past decade, Solution Dynamics' ROA % has ranged from 2.69 to 22.40. According to the industry distribution chart, Solution Dynamics ranks #1290 out of 2882 companies in the Software industry, placing it in the top 44.8%.
Is Solution Dynamics' ROA % too high?
Solution Dynamics' current ROA % of 2.41% is 86% below median its 10-year median of 17.64. Over the past 10 years, this metric has ranged from a low of 2.69 to a high of 22.40. The Software industry median ROA % is 1.65. Solution Dynamics' value of 2.41% is 46.5% above this industry median. Based on the distribution chart, Solution Dynamics ranks #1290 out of 2882 companies in the Software industry, which is above the industry midpoint. Overall, Solution Dynamics has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Solution Dynamics' ROA % compare to CRM and SHOP?
According to the Software industry distribution chart, Solution Dynamics ranks #1290 out of 2882 companies for ROA %. This puts Solution Dynamics in the upper half of its industry. The industry median ROA % is 1.65. Solution Dynamics' value of 2.41% is 46.5% above this benchmark. Historically, Solution Dynamics' own ROA % has ranged from 2.69 to 22.40 over the past decade. While the company's 10-year median is 17.64 vs. the industry median of 1.65, Solution Dynamics 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 1.65, based on 2,882 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. Solution Dynamics's current ROA % of 2.41% is 46.5% 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 Solution Dynamics and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solution Dynamics's current ROA % is 2.41%, which is 86% below median its own 10-year median of 17.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solution Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Solution Dynamics (NZSE:SDL) is currently considered Significantly Undervalued. The stock's GF Value™ is NZ$0.99, compared to a current price of NZ$0.61 — trading 38.4% below its estimated fair value. The current ROA % is 2.41%, which is 86% below median its 10-year median of 17.64 and 46.5% above the Software industry median of 1.65. Solution Dynamics' overall GF Score™ is 59/100 with 3 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 Solution Dynamics (NZSE:SDL), the current ROA % is 2.41% 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 Solution Dynamics (NZSE:SDL) Overvalued in 2026?
Based on GuruFocus' analysis, Solution Dynamics stock appears to be undervalued.
The current stock price of NZ$0.61 is trading 38.4% below its estimated GF Value™ of NZ$0.99.
GuruFocus considers Solution Dynamics to be Significantly Undervalued.
Key valuation signals for NZSE:SDL:
ROA %: 2.41% (86% below median its 10-year median of 17.64)
GF Value™: NZ$0.99 vs. price of NZ$0.61 (38.4% below fair value)
Industry Position: 46.5% above the Software median (#1290 of 2882)
No single metric tells the full story. See the NZSE:SDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional materials. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.
59GF Score
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