Sleep Cycle ABOSTO:SLEEP +1.63%84 ROA % is 10.81% as of Mar. 2026, which is 58% below its 10-year median of 25.60. GuruFocus rates OSTO:SLEEP with a GF Score™ of 84/100 and a GF Value™ of kr30.25 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 2,882 Software companies, Sleep Cycle AB ranks better than 95.98% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sleep Cycle AB's annualizedNet Income for the quarter that ended in Mar. 2026 was kr22.0 Mil.
Sleep Cycle AB's average Total Assets over the quarter that ended in Mar. 2026 was kr203.6 Mil. Therefore, Sleep Cycle AB's annualized ROA % for the quarter that ended in Mar. 2026 was 10.81%.
The historical rank and industry rank for Sleep Cycle AB's ROA % or its related term are showing as below:
OSTO:SLEEP'
s ROA % Range Over the Past 10 Years
Min: 4.88 Med: 25.6 Max: 43.52
Current: 21.39
During the past 9 years, Sleep Cycle AB's highest ROA % was 43.52%. The lowest was 4.88%. And the median was 25.60%.
OSTO:SLEEP's ROA % is ranked better than 95.98% of 2882
companies
in the Software industry
Industry Median: 1.645
vs OSTO:SLEEP: 21.39
Sleep Cycle AB (OSTO:SLEEP) 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.
Sleep Cycle AB ROA % Related Terms
Sleep Cycle AB ROA % Historical Data
* Premium members only.
The historical data trend for Sleep Cycle AB'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, Sleep Cycle AB'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.
Sleep Cycle AB ROA % vs Software Industry
For the Software industry and Technology sector, Sleep Cycle AB's ROA % distribution charts can be found below:
* The bar in red indicates where Sleep Cycle AB'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.
Sleep Cycle AB (OSTO:SLEEP) has a ROA % of 10.81% 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 Sleep Cycle AB and its competitors. This is 58% below median its historical median of 25.60. Over the past decade, Sleep Cycle AB's ROA % has ranged from 4.88 to 43.52. According to the industry distribution chart, Sleep Cycle AB ranks #116 out of 2882 companies in the Software industry, placing it in the top 4%.
Is Sleep Cycle AB's ROA % too high?
Sleep Cycle AB's current ROA % of 10.81% is 58% below median its 10-year median of 25.60. Over the past 10 years, this metric has ranged from a low of 4.88 to a high of 43.52. The Software industry median ROA % is 1.65. Sleep Cycle AB's value of 10.81% is 557.1% above this industry median. Based on the distribution chart, Sleep Cycle AB ranks #116 out of 2882 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sleep Cycle AB has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sleep Cycle AB's ROA % compare to CRM and SHOP?
According to the Software industry distribution chart, Sleep Cycle AB ranks #116 out of 2882 companies for ROA %. This places Sleep Cycle AB in the top 4% of its industry — outperforming the majority of peers. The industry median ROA % is 1.65. Sleep Cycle AB's value of 10.81% is 557.1% above this benchmark. Historically, Sleep Cycle AB's own ROA % has ranged from 4.88 to 43.52 over the past decade. While the company's 10-year median is 25.60 vs. the industry median of 1.65, Sleep Cycle AB 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. Sleep Cycle AB's current ROA % of 10.81% is 557.1% 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 Sleep Cycle AB 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. Sleep Cycle AB's current ROA % is 10.81%, which is 58% below median its own 10-year median of 25.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sleep Cycle AB stock overvalued right now?
Based on GuruFocus' analysis, Sleep Cycle AB (OSTO:SLEEP) is currently considered Modestly Undervalued. The stock's GF Value™ is kr30.25, compared to a current price of kr24.95 — trading 17.5% below its estimated fair value. The current ROA % is 10.81%, which is 58% below median its 10-year median of 25.60 and 557.1% above the Software industry median of 1.65. Sleep Cycle AB's overall GF Score™ is 84/100 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 Sleep Cycle AB (OSTO:SLEEP), the current ROA % is 10.81% 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 Sleep Cycle AB (OSTO:SLEEP) Overvalued in 2026?
Based on GuruFocus' analysis, Sleep Cycle AB stock appears to be undervalued.
The current stock price of kr24.95 is trading 17.5% below its estimated GF Value™ of kr30.25.
GuruFocus considers Sleep Cycle AB to be Modestly Undervalued.
Key valuation signals for OSTO:SLEEP:
ROA %: 10.81% (58% below median its 10-year median of 25.60)
GF Value™: kr30.25 vs. price of kr24.95 (17.5% below fair value)
Industry Position: 557.1% above the Software median (#116 of 2882)
No single metric tells the full story. See the OSTO:SLEEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sleep Cycle AB is a sleep tracker application. It helps people understand their sleep habits and improve their sleep. The mobile application helps users fall asleep more easily, tracks sleep patterns through the night and wakes up users in the light-sleep phase, providing valuable insights designed to improve sleep quality. Geographically group operates in Sweden and other countries in which all of revenue is generated from Sweden.
84GF Score
Get the complete analysis for OSTO:SLEEP
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
OSTO:SLEEP has been successfully added to your 
