Red Light HollandTRUFF +5.24% ROA % is -29.70% as of Dec. 2025. The stock has 4 warning signs investors should review. Among 1,006 Drug Manufacturers companies, Red Light Holland ranks worse than 87.18% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Red Light Holland's annualizedNet Income for the quarter that ended in Dec. 2025 was $-4.00 Mil.
Red Light Holland's average Total Assets over the quarter that ended in Dec. 2025 was $13.47 Mil. Therefore, Red Light Holland's annualized ROA % for the quarter that ended in Dec. 2025 was -29.70%.
The historical rank and industry rank for Red Light Holland's ROA % or its related term are showing as below:
TRUFF'
s ROA % Range Over the Past 10 Years
Min: -41.5 Med: -17.48 Max: -8.17
Current: -24.67
During the past 7 years, Red Light Holland's highest ROA % was -8.17%. The lowest was -41.50%. And the median was -17.48%.
TRUFF's ROA % is ranked worse than 87.18% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 2.685
vs TRUFF: -24.67
Red Light Holland (OTCPK:TRUFF) 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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (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.
Red Light Holland ROA % Related Terms
Red Light Holland ROA % Historical Data
* Premium members only.
The historical data trend for Red Light Holland'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 Drug Manufacturers - Specialty & Generic subindustry, Red Light Holland'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.
Red Light Holland ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Red Light Holland's ROA % distribution charts can be found below:
* The bar in red indicates where Red Light Holland'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Red Light Holland (TRUFF) has a ROA % of -29.70% 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 Red Light Holland and its competitors. According to the industry distribution chart, Red Light Holland ranks #877 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 87.2%.
Is Red Light Holland's ROA % too high?
Red Light Holland's current ROA % is -29.70%. Based on the distribution chart, Red Light Holland ranks #877 out of 1006 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers.
How does Red Light Holland's ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Red Light Holland ranks #877 out of 1006 companies for ROA %. This places Red Light Holland in the lower half of its industry. The industry median ROA % is 2.69. 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.69, based on 1,006 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. 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 Red Light Holland and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Light Holland's current ROA % is -29.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Light Holland stock overvalued right now?
Based on GuruFocus' analysis, Red Light Holland (TRUFF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.03, compared to a current price of $0.02 — trading 28.4% below its estimated fair value. The current ROA % is -29.70%. 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 Red Light Holland (TRUFF), the current ROA % is -29.70% 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.
Red Light Holland Corp is engaged in the production, growth, and sale of functional mushrooms and mushroom home grow kits in North America and Europe, and a premium brand of psilocybin truffles to the legal, recreational market within the Netherlands. Its products include Microdosing Kit and Merch. Its revenue is comprised of sales of wholesale truffles, cannabis seeds, and other cannabis products and sales of microdose packs.
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