Royce Micro-Cap TrustRMT +0.57%40 ROA % is 13.86% as of Dec. 2025, which is 4% above its 10-year median of 13.37. GuruFocus rates RMT with a GF Score™ of 40/100 and a GF Value™ of $10.44 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,638 Asset Management companies, Royce Micro-Cap Trust ranks better than 81.81% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Royce Micro-Cap Trust's annualizedNet Income for the quarter that ended in Dec. 2025 was $85.14 Mil.
Royce Micro-Cap Trust's average Total Assets over the quarter that ended in Dec. 2025 was $614.37 Mil. Therefore, Royce Micro-Cap Trust's annualized ROA % for the quarter that ended in Dec. 2025 was 13.86%.
The historical rank and industry rank for Royce Micro-Cap Trust's ROA % or its related term are showing as below:
RMT'
s ROA % Range Over the Past 10 Years
Min: -18.44 Med: 13.37 Max: 18.76
Current: 14.64
During the past 9 years, Royce Micro-Cap Trust's highest ROA % was 18.76%. The lowest was -18.44%. And the median was 13.37%.
RMT's ROA % is ranked better than 81.81% of 1638
companies
in the Asset Management industry
Industry Median: 3.95
vs RMT: 14.64
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.
* 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, Royce Micro-Cap 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.
Royce Micro-Cap Trust ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Royce Micro-Cap Trust's ROA % distribution charts can be found below:
* The bar in red indicates where Royce Micro-Cap 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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Royce Micro-Cap Trust (RMT) has a ROA % of 13.86% 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 Royce Micro-Cap Trust and its competitors. This is near median its historical median of 13.37. According to the industry distribution chart, Royce Micro-Cap Trust ranks #298 out of 1638 companies in the Asset Management industry, placing it in the top 18.2%.
Is Royce Micro-Cap Trust's ROA % too high?
Royce Micro-Cap Trust's current ROA % of 13.86% is near median its 10-year median of 13.37. The Asset Management industry median ROA % is 3.95. Royce Micro-Cap Trust's value of 13.86% is 250.9% above this industry median. Based on the distribution chart, Royce Micro-Cap Trust ranks #298 out of 1638 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Royce Micro-Cap Trust has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royce Micro-Cap Trust's ROA % compare to CGBD and NIE?
According to the Asset Management industry distribution chart, Royce Micro-Cap Trust ranks #298 out of 1638 companies for ROA %. This places Royce Micro-Cap Trust in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 3.95. Royce Micro-Cap Trust's value of 13.86% is 250.9% above this benchmark. While the company's 10-year median is 13.37 vs. the industry median of 3.95, Royce Micro-Cap Trust 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 an Asset Management company?
The median ROA % among Asset Management companies is 3.95, based on 1,638 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. Royce Micro-Cap Trust's current ROA % of 13.86% is 250.9% 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 Royce Micro-Cap Trust and its competitors. For the Asset Management industry, the median ROA % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royce Micro-Cap Trust's current ROA % is 13.86%, which is near median its own 10-year median of 13.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royce Micro-Cap Trust stock overvalued right now?
Based on GuruFocus' analysis, Royce Micro-Cap Trust (RMT) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.44, compared to a current price of $14.05 — trading 34.6% above its estimated fair value. The current ROA % is 13.86%, which is near median its 10-year median of 13.37 and 250.9% above the Asset Management industry median of 3.95. Royce Micro-Cap Trust's overall GF Score™ is 40/100 with 8 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 Royce Micro-Cap Trust (RMT), the current ROA % is 13.86% 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 Royce Micro-Cap Trust (RMT) Overvalued in 2026?
Based on GuruFocus' analysis, Royce Micro-Cap Trust stock appears to be overvalued.
The current stock price of $14.05 is trading 34.6% above its estimated GF Value™ of $10.44.
GuruFocus considers Royce Micro-Cap Trust to be Significantly Overvalued.
Key valuation signals for RMT:
ROA %: 13.86% (near median its 10-year median of 13.37)
GF Value™: $10.44 vs. price of $14.05 (34.6% above fair value)
Industry Position: 250.9% above the Asset Management median (#298 of 1638)
No single metric tells the full story. See the RMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royce Micro-Cap Trust Inc is a diversified closed-end investment company. The company is engaged in investing in micro-cap securities. It invests in the consumer discretionary sector, including diversified consumer services, hotels, household durables, leisure products, and luxury goods. Consumer staples sector, including beverages, food, and staples retailing, food products, and personal products, Energy sector, including energy equipment and services, and oil, gas, and consumable fuels. The company also invests in other sectors, including healthcare, financials, industrials, IT, telecommunications, and materials.
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