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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. TextMagic AS's annualizedNet Income for the quarter that ended in Dec. 2025 was €-3.71 Mil.
TextMagic AS's average Total Assets over the quarter that ended in Dec. 2025 was €34.75 Mil. Therefore, TextMagic AS's annualized ROA % for the quarter that ended in Dec. 2025 was -10.69%.
The historical rank and industry rank for TextMagic AS's ROA % or its related term are showing as below:
OTSE:MAGIC'
s ROA % Range Over the Past 10 Years
Min: -40.89 Med: -0.84 Max: 5.35
Current: -5.48
During the past 5 years, TextMagic AS's highest ROA % was 5.35%. The lowest was -40.89%. And the median was -0.84%.
OTSE:MAGIC's ROA % is ranked worse than 69.58% of 2886
companies
in the Software industry
Industry Median: 1.695
vs OTSE:MAGIC: -5.48
TextMagic AS (OTSE:MAGIC) 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.
TextMagic AS ROA % Related Terms
TextMagic AS ROA % Historical Data
* Premium members only.
The historical data trend for TextMagic AS'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, TextMagic AS'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.
TextMagic AS ROA % vs Software Industry
For the Software industry and Technology sector, TextMagic AS's ROA % distribution charts can be found below:
* The bar in red indicates where TextMagic AS'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.
TextMagic AS (OTSE:MAGIC) has a ROA % of -10.69% 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 TextMagic AS and its competitors. According to the industry distribution chart, TextMagic AS ranks #2008 out of 2886 companies in the Software industry, placing it in the top 69.6%.
Is TextMagic AS's ROA % too high?
TextMagic AS's current ROA % is -10.69%. Based on the distribution chart, TextMagic AS ranks #2008 out of 2886 companies in the Software industry, which is below the industry midpoint. Overall, TextMagic AS has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does TextMagic AS's ROA % compare to UBER and SHOP?
According to the Software industry distribution chart, TextMagic AS ranks #2008 out of 2886 companies for ROA %. This places TextMagic AS in the lower half of its industry. The industry median ROA % is 1.70. 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 1.70, based on 2,886 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 TextMagic AS and its competitors. For the Software industry, the median ROA % is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TextMagic AS's current ROA % is -10.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TextMagic AS stock overvalued right now?
Based on GuruFocus' analysis, TextMagic AS (OTSE:MAGIC) is currently considered Possible Value Trap. The stock's GF Value™ is €3.78, compared to a current price of €1.77 — trading 53.2% below its estimated fair value. The current ROA % is -10.69%. TextMagic AS's overall GF Score™ is 58/100 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 TextMagic AS (OTSE:MAGIC), the current ROA % is -10.69% 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 TextMagic AS (OTSE:MAGIC) Overvalued in 2026?
Based on GuruFocus' analysis, TextMagic AS stock appears to be undervalued.
The current stock price of €1.77 is trading 53.2% below its estimated GF Value™ of €3.78.
GuruFocus considers TextMagic AS to be Possible Value Trap.
Key valuation signals for OTSE:MAGIC:
ROA %: -10.69%
GF Value™: €3.78 vs. price of €1.77 (53.2% below fair value)
No single metric tells the full story. See the OTSE:MAGIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TextMagic AS is a text messaging company that helps businesses engage with customers. The Group's activities include the management and development of software products. The company operates mainly in the U.S., the U.K., Canada, Australia, and other countries. TextMagic enables companies to transform customer experiences through its text messaging marketing software, which can be used to send notifications, alerts, reminders, confirmations, and SMS marketing campaigns anytime, anywhere. Its product and service lines include text messaging services, which generate maximum revenue, virtual mobile number services, other TextMagic platform services, and the Voog.com platform. The company derives the majority of its revenue from the United States.
58GF Score
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