Phillips EdisonPECO +1.15%79 ROA % is 2.28% as of Mar. 2026, which is 251% above its 10-year median of 0.65. GuruFocus rates PECO with a GF Score™ of 79/100 and a GF Value™ of $39.98 (Fairly Valued). The stock has 7 warning signs investors should review. Among 938 REITs companies, Phillips Edison ranks worse than 62.15% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Phillips Edison's annualizedNet Income for the quarter that ended in Mar. 2026 was $121.5 Mil.
Phillips Edison's average Total Assets over the quarter that ended in Mar. 2026 was $5,318.7 Mil. Therefore, Phillips Edison's annualized ROA % for the quarter that ended in Mar. 2026 was 2.28%.
The historical rank and industry rank for Phillips Edison's ROA % or its related term are showing as below:
PECO'
s ROA % Range Over the Past 10 Years
Min: -1.3 Med: 0.65 Max: 2.19
Current: 2.19
During the past 13 years, Phillips Edison's highest ROA % was 2.19%. The lowest was -1.30%. And the median was 0.65%.
PECO's ROA % is ranked worse than 62.15% of 938
companies
in the REITs industry
Industry Median: 3.23
vs PECO: 2.19
Phillips Edison (NAS:PECO) 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.
Phillips Edison ROA % Related Terms
Phillips Edison ROA % Historical Data
* Premium members only.
The historical data trend for Phillips Edison'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 REIT - Retail subindustry, Phillips Edison'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.
Phillips Edison ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Phillips Edison's ROA % distribution charts can be found below:
* The bar in red indicates where Phillips Edison'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.
Phillips Edison (PECO) has a ROA % of 2.28% 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 Phillips Edison and its competitors. This is 251% above median its historical median of 0.65. According to the industry distribution chart, Phillips Edison ranks #583 out of 938 companies in the REITs industry, placing it in the top 62.2%.
Is Phillips Edison's ROA % too high?
Phillips Edison's current ROA % of 2.28% is 251% above median its 10-year median of 0.65. The REITs industry median ROA % is 3.23. Phillips Edison's value of 2.28% is 29.4% below this industry median. Based on the distribution chart, Phillips Edison ranks #583 out of 938 companies in the REITs industry, which is below the industry midpoint. Overall, Phillips Edison has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Phillips Edison's ROA % compare to KRG and SKT?
According to the REITs industry distribution chart, Phillips Edison ranks #583 out of 938 companies for ROA %. This places Phillips Edison in the lower half of its industry. The industry median ROA % is 3.23. Phillips Edison's value of 2.28% is 29.4% below this benchmark. While the company's 10-year median is 0.65 vs. the industry median of 3.23, Phillips Edison has consistently been below 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 REITs company?
The median ROA % among REITs companies is 3.23, based on 938 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. Phillips Edison's current ROA % of 2.28% is 29.4% below 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 Phillips Edison and its competitors. For the REITs industry, the median ROA % is 3.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Phillips Edison's current ROA % is 2.28%, which is 251% above median its own 10-year median of 0.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Phillips Edison stock overvalued right now?
Based on GuruFocus' analysis, Phillips Edison (PECO) is currently considered Fairly Valued. The stock's GF Value™ is $39.98, compared to a current price of $42.27 — trading 5.7% above its estimated fair value. The current ROA % is 2.28%, which is 251% above median its 10-year median of 0.65 and 29.4% below the REITs industry median of 3.23. Phillips Edison's overall GF Score™ is 79/100 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 Phillips Edison (PECO), the current ROA % is 2.28% 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 Phillips Edison (PECO) Overvalued in 2026?
Based on GuruFocus' analysis, Phillips Edison stock appears to be overvalued.
The current stock price of $42.27 is trading 5.7% above its estimated GF Value™ of $39.98.
GuruFocus considers Phillips Edison to be Fairly Valued.
Key valuation signals for PECO:
ROA %: 2.28% (251% above median its 10-year median of 0.65)
GF Value™: $39.98 vs. price of $42.27 (5.7% above fair value)
Industry Position: 29.4% below the REITs median (#583 of 938)
No single metric tells the full story. See the PECO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Phillips Edison & Co Inc is a real estate investment trust. The company also operates a third-party investment management business providing property management and advisory services to four unconsolidated institutional joint ventures, in which it has a partial ownership interest, and one private fund. It invests in well-occupied, grocery-anchored neighborhood and community shopping centers. It holds an integrated in-house operating platform built on a market of expertise designed to optimize property value and consistently deliver a great shopping experience.
79GF Score
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