TFS FinancialTFSL +2.64%56 ROA % is 0.53% as of Mar. 2026, which is 5% below its 10-year median of 0.56. GuruFocus rates TFSL with a GF Score™ of 56/100 and a GF Value™ of $14.60 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,528 Banks companies, TFS Financial ranks worse than 74.8% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. TFS Financial's annualizedNet Income for the quarter that ended in Mar. 2026 was $93.0 Mil.
TFS Financial's average Total Assets over the quarter that ended in Mar. 2026 was $17,489.2 Mil. Therefore, TFS Financial's annualized ROA % for the quarter that ended in Mar. 2026 was 0.53%.
The historical rank and industry rank for TFS Financial's ROA % or its related term are showing as below:
TFSL'
s ROA % Range Over the Past 10 Years
Min: 0.46 Med: 0.56 Max: 0.67
Current: 0.54
During the past 13 years, TFS Financial's highest ROA % was 0.67%. The lowest was 0.46%. And the median was 0.56%.
TFSL's ROA % is ranked worse than 74.8% of 1528
companies
in the Banks industry
Industry Median: 0.98
vs TFSL: 0.54
TFS Financial (NAS:TFSL) 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.
TFS Financial ROA % Related Terms
TFS Financial ROA % Historical Data
* Premium members only.
The historical data trend for TFS Financial'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 Banks - Regional subindustry, TFS Financial'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.
TFS Financial ROA % vs Banks Industry
For the Banks industry and Financial Services sector, TFS Financial's ROA % distribution charts can be found below:
* The bar in red indicates where TFS Financial'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.
TFS Financial (TFSL) has a ROA % of 0.53% 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 TFS Financial and its competitors. This is near median its historical median of 0.56. Over the past decade, TFS Financial's ROA % has ranged from 0.46 to 0.67. According to the industry distribution chart, TFS Financial ranks #1143 out of 1528 companies in the Banks industry, placing it in the top 74.8%.
Is TFS Financial's ROA % too high?
TFS Financial's current ROA % of 0.53% is near median its 10-year median of 0.56. Over the past 10 years, this metric has ranged from a low of 0.46 to a high of 0.67. The Banks industry median ROA % is 0.98. TFS Financial's value of 0.53% is 45.9% below this industry median. Based on the distribution chart, TFS Financial ranks #1143 out of 1528 companies in the Banks industry, which is below the industry midpoint. Overall, TFS Financial has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TFS Financial's ROA % compare to IBOC and TCBI?
According to the Banks industry distribution chart, TFS Financial ranks #1143 out of 1528 companies for ROA %. This places TFS Financial in the lower half of its industry. The industry median ROA % is 0.98. TFS Financial's value of 0.53% is 45.9% below this benchmark. Historically, TFS Financial's own ROA % has ranged from 0.46 to 0.67 over the past decade. While the company's 10-year median is 0.56 vs. the industry median of 0.98, TFS Financial 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 Banks company?
The median ROA % among Banks companies is 0.98, based on 1,528 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. TFS Financial's current ROA % of 0.53% is 45.9% 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 TFS Financial and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TFS Financial's current ROA % is 0.53%, which is near median its own 10-year median of 0.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TFS Financial stock overvalued right now?
Based on GuruFocus' analysis, TFS Financial (TFSL) is currently considered Modestly Overvalued. The stock's GF Value™ is $14.60, compared to a current price of $17.51 — trading 19.9% above its estimated fair value. The current ROA % is 0.53%, which is near median its 10-year median of 0.56 and 45.9% below the Banks industry median of 0.98. TFS Financial's overall GF Score™ is 56/100 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 TFS Financial (TFSL), the current ROA % is 0.53% 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 TFS Financial (TFSL) Overvalued in 2026?
Based on GuruFocus' analysis, TFS Financial stock appears to be overvalued.
The current stock price of $17.51 is trading 19.9% above its estimated GF Value™ of $14.60.
GuruFocus considers TFS Financial to be Modestly Overvalued.
Key valuation signals for TFSL:
ROA %: 0.53% (near median its 10-year median of 0.56)
GF Value™: $14.60 vs. price of $17.51 (19.9% above fair value)
Industry Position: 45.9% below the Banks median (#1143 of 1528)
No single metric tells the full story. See the TFSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TFS Financial Corp is the holding company for the Third Federal Savings and Loan Association of Cleveland. The company's ownership in the savings and loan association is its primary business activity. The association's principal business consists of originating and servicing residential real estate mortgage loans and attracting retail savings deposits. It does so by offering products with competitive rates and yields. The company also operates Third Capital, a wholly owned subsidiary that serves as a holding company or as an investor in vehicles such as private equity funds. Third Capital has interests in lease transactions of commercial buildings, title agencies providing escrow and settlement services, and reinsurance of private mortgage insurance on residential loans.
56GF Score
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