ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Pagaya Technologies's annualizedNet Income for the quarter that ended in Mar. 2026 was $99 Mil.
Pagaya Technologies's average Total Assets over the quarter that ended in Mar. 2026 was $1,597 Mil. Therefore, Pagaya Technologies's annualized ROA % for the quarter that ended in Mar. 2026 was 6.18%.
The historical rank and industry rank for Pagaya Technologies's ROA % or its related term are showing as below:
PGY'
s ROA % Range Over the Past 10 Years
Min: -36.97 Med: -17.17 Max: 7.08
Current: 6.7
During the past 6 years, Pagaya Technologies's highest ROA % was 7.08%. The lowest was -36.97%. And the median was -17.17%.
PGY's ROA % is ranked better than 71.68% of 2881
companies
in the Software industry
Industry Median: 1.65
vs PGY: 6.70
Pagaya Technologies (NAS:PGY) 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.
Pagaya Technologies ROA % Related Terms
Pagaya Technologies ROA % Historical Data
* Premium members only.
The historical data trend for Pagaya Technologies'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 - Infrastructure subindustry, Pagaya Technologies'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.
Pagaya Technologies ROA % vs Software Industry
For the Software industry and Technology sector, Pagaya Technologies's ROA % distribution charts can be found below:
* The bar in red indicates where Pagaya Technologies'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.
Pagaya Technologies (PGY) has a ROA % of 6.18% 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 Pagaya Technologies and its competitors. According to the industry distribution chart, Pagaya Technologies ranks #816 out of 2881 companies in the Software industry, placing it in the top 28.3%.
Is Pagaya Technologies' ROA % too high?
Pagaya Technologies' current ROA % is 6.18%. The Software industry median ROA % is 1.65. Pagaya Technologies' value of 6.18% is 274.5% above this industry median. Based on the distribution chart, Pagaya Technologies ranks #816 out of 2881 companies in the Software industry, which is above the industry midpoint. Overall, Pagaya Technologies has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pagaya Technologies' ROA % compare to PICS and AI?
According to the Software industry distribution chart, Pagaya Technologies ranks #816 out of 2881 companies for ROA %. This puts Pagaya Technologies in the upper half of its industry. The industry median ROA % is 1.65. Pagaya Technologies' value of 6.18% is 274.5% above this benchmark. 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 2,881 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. Pagaya Technologies's current ROA % of 6.18% is 274.5% 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 Pagaya Technologies 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. Pagaya Technologies's current ROA % is 6.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pagaya Technologies stock overvalued right now?
Based on GuruFocus' analysis, Pagaya Technologies (PGY) is currently considered Fairly Valued. The stock's GF Value™ is $15.31, compared to a current price of $16.02 — trading 4.6% above its estimated fair value. The current ROA % is 6.18% and 274.5% above the Software industry median of 1.65. Pagaya Technologies' overall GF Score™ is 77/100 with 6 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 Pagaya Technologies (PGY), the current ROA % is 6.18% 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 Pagaya Technologies (PGY) Overvalued in 2026?
Based on GuruFocus' analysis, Pagaya Technologies stock appears to be overvalued.
The current stock price of $16.02 is trading 4.6% above its estimated GF Value™ of $15.31.
GuruFocus considers Pagaya Technologies to be Fairly Valued.
Key valuation signals for PGY:
ROA %: 6.18%
GF Value™: $15.31 vs. price of $16.02 (4.6% above fair value)
Industry Position: 274.5% above the Software median (#816 of 2881)
No single metric tells the full story. See the PGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pagaya Technologies Ltd is a product-focused technology company. It uses machine learning, a vast data network, and an AI-driven approach to offer comprehensive consumer credit and residential real estate products for its partners, their customers, and investors. Its suite of products includes Decline Monetization, Dual Look, First Look, Affiliate Optimizer Engine, Direct Marketing Engine, and FastPass, providing lenders with an AI-powered credit and acquisition ecosystem that helps them approve more borrowers, capture more demand, and grow without adding risk. Geographically, the company generates maximum revenue from its business in the United States.
77GF Score
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