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Putnam Municipal Opportunities Trust (NYSE:PMO) 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 (Apr. 2026) net income data. The Revenue data used here is two times the semi-annual (Apr. 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.
Putnam Municipal Opportunities Trust ROA % Related Terms
Putnam Municipal Opportunities Trust ROA % Historical 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.
For the Asset Management subindustry, Putnam Municipal Opportunities Trust'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.
Putnam Municipal Opportunities Trust ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Putnam Municipal Opportunities Trust's ROA % distribution charts can be found below:
* The bar in red indicates where Putnam Municipal Opportunities Trust'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 (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Putnam Municipal Opportunities Trust (PMO) has a ROA % of 3.12% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Putnam Municipal Opportunities Trust and its competitors. This is 13% above median its historical median of 2.75. According to the industry distribution chart, Putnam Municipal Opportunities Trust ranks #658 out of 1635 companies in the Asset Management industry, placing it in the top 40.2%.
Is Putnam Municipal Opportunities Trust's ROA % too high?
Putnam Municipal Opportunities Trust's current ROA % of 3.12% is 13% above median its 10-year median of 2.75. The Asset Management industry median ROA % is 4.35. Putnam Municipal Opportunities Trust's value of 3.12% is 28.3% below this industry median. Based on the distribution chart, Putnam Municipal Opportunities Trust ranks #658 out of 1635 companies in the Asset Management industry, which is above the industry midpoint. Overall, Putnam Municipal Opportunities Trust has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Putnam Municipal Opportunities Trust's ROA % compare to MMD and EFT?
According to the Asset Management industry distribution chart, Putnam Municipal Opportunities Trust ranks #658 out of 1635 companies for ROA %. This puts Putnam Municipal Opportunities Trust in the upper half of its industry. The industry median ROA % is 4.35. Putnam Municipal Opportunities Trust's value of 3.12% is 28.3% below this benchmark. While the company's 10-year median is 2.75 vs. the industry median of 4.35, Putnam Municipal Opportunities Trust 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 an Asset Management company?
The median ROA % among Asset Management companies is 4.35, based on 1,635 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. Putnam Municipal Opportunities Trust's current ROA % of 3.12% is 28.3% 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 Putnam Municipal Opportunities Trust and its competitors. For the Asset Management industry, the median ROA % is 4.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Putnam Municipal Opportunities Trust's current ROA % is 3.12%, which is 13% above median its own 10-year median of 2.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Putnam Municipal Opportunities Trust stock overvalued right now?
Based on GuruFocus' analysis, Putnam Municipal Opportunities Trust (PMO) is currently considered Possible Value Trap. The stock's GF Value™ is $20.56, compared to a current price of $10.51 — trading 48.9% below its estimated fair value. The current ROA % is 3.12%, which is 13% above median its 10-year median of 2.75 and 28.3% below the Asset Management industry median of 4.35. Putnam Municipal Opportunities Trust's overall GF Score™ is 48/100 with 2 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 Putnam Municipal Opportunities Trust (PMO), the current ROA % is 3.12% as of Apr. 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 Putnam Municipal Opportunities Trust (PMO) Overvalued in 2026?
Based on GuruFocus' analysis, Putnam Municipal Opportunities Trust stock appears to be undervalued.
The current stock price of $10.51 is trading 48.9% below its estimated GF Value™ of $20.56.
GuruFocus considers Putnam Municipal Opportunities Trust to be Possible Value Trap.
Key valuation signals for PMO:
ROA %: 3.12% (13% above median its 10-year median of 2.75)
GF Value™: $20.56 vs. price of $10.51 (48.9% below fair value)
Industry Position: 28.3% below the Asset Management median (#658 of 1635)
No single metric tells the full story. See the PMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Putnam Municipal Opportunities Trust is a non-diversified closed-end management investment company. It seeks to provide as high a level of current income free from federal income tax as Putnam Management believes is consistent with the preservation of capital. The fund invests in healthcare, utilities, transportation, tax bonds, local debt, state debt, and education.
48GF Score
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