ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Labrador Iron Ore Royalty's annualizedNet Income for the quarter that ended in Mar. 2026 was C$52.8 Mil.
Labrador Iron Ore Royalty's average Total Assets over the quarter that ended in Mar. 2026 was C$803.4 Mil. Therefore, Labrador Iron Ore Royalty's annualized ROA % for the quarter that ended in Mar. 2026 was 6.57%.
The historical rank and industry rank for Labrador Iron Ore Royalty's ROA % or its related term are showing as below:
TSX:LIF'
s ROA % Range Over the Past 10 Years
Min: 10.77 Med: 21.78 Max: 47.1
Current: 11.47
During the past 13 years, Labrador Iron Ore Royalty's highest ROA % was 47.10%. The lowest was 10.77%. And the median was 21.78%.
TSX:LIF's ROA % is ranked better than 94.35% of 637
companies
in the Steel industry
Industry Median: 1.92
vs TSX:LIF: 11.47
Labrador Iron Ore Royalty (TSX:LIF) 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.
* 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 Steel subindustry, Labrador Iron Ore Royalty'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.
Labrador Iron Ore Royalty ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, Labrador Iron Ore Royalty's ROA % distribution charts can be found below:
* The bar in red indicates where Labrador Iron Ore Royalty'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.
Labrador Iron Ore Royalty (TSX:LIF) has a ROA % of 6.57% 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 Labrador Iron Ore Royalty and its competitors. This is 70% below median its historical median of 21.78. Over the past decade, Labrador Iron Ore Royalty's ROA % has ranged from 10.77 to 47.10. According to the industry distribution chart, Labrador Iron Ore Royalty ranks #36 out of 637 companies in the Steel industry, placing it in the top 5.7%.
Is Labrador Iron Ore Royalty's ROA % too high?
Labrador Iron Ore Royalty's current ROA % of 6.57% is 70% below median its 10-year median of 21.78. Over the past 10 years, this metric has ranged from a low of 10.77 to a high of 47.10. The Steel industry median ROA % is 1.92. Labrador Iron Ore Royalty's value of 6.57% is 242.2% above this industry median. Based on the distribution chart, Labrador Iron Ore Royalty ranks #36 out of 637 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Labrador Iron Ore Royalty has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Labrador Iron Ore Royalty's ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, Labrador Iron Ore Royalty ranks #36 out of 637 companies for ROA %. This places Labrador Iron Ore Royalty in the top 6% of its industry — outperforming the majority of peers. The industry median ROA % is 1.92. Labrador Iron Ore Royalty's value of 6.57% is 242.2% above this benchmark. Historically, Labrador Iron Ore Royalty's own ROA % has ranged from 10.77 to 47.10 over the past decade. While the company's 10-year median is 21.78 vs. the industry median of 1.92, Labrador Iron Ore Royalty 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 a Steel company?
The median ROA % among Steel companies is 1.92, based on 637 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. Labrador Iron Ore Royalty's current ROA % of 6.57% is 242.2% 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 Labrador Iron Ore Royalty and its competitors. For the Steel industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labrador Iron Ore Royalty's current ROA % is 6.57%, which is 70% below median its own 10-year median of 21.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labrador Iron Ore Royalty stock overvalued right now?
Based on GuruFocus' analysis, Labrador Iron Ore Royalty (TSX:LIF) is currently considered Modestly Overvalued. The stock's GF Value™ is C$25.43, compared to a current price of C$28.40 — trading 11.7% above its estimated fair value. The current ROA % is 6.57%, which is 70% below median its 10-year median of 21.78 and 242.2% above the Steel industry median of 1.92. Labrador Iron Ore Royalty's overall GF Score™ is 79/100 with 5 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 Labrador Iron Ore Royalty (TSX:LIF), the current ROA % is 6.57% 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 Labrador Iron Ore Royalty (TSX:LIF) Overvalued in 2026?
Based on GuruFocus' analysis, Labrador Iron Ore Royalty stock appears to be overvalued.
The current stock price of C$28.40 is trading 11.7% above its estimated GF Value™ of C$25.43.
GuruFocus considers Labrador Iron Ore Royalty to be Modestly Overvalued.
Key valuation signals for TSX:LIF:
ROA %: 6.57% (70% below median its 10-year median of 21.78)
GF Value™: C$25.43 vs. price of C$28.40 (11.7% above fair value)
Industry Position: 242.2% above the Steel median (#36 of 637)
No single metric tells the full story. See the TSX:LIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Labrador Iron Ore Royalty Corporation, along with its wholly owned subsidiary, holds approximately fifteen percent interest in Iron Ore Company of Canada (IOC), a North American producer and exporter of iron ore pellets and high-grade concentrate. The company receives approximately seven percent gross overriding royalty on all iron ore products produced, sold, and shipped by IOC and some cents per tonne commission on all iron ore products produced and sold by IOC from the leased lands. Under normal circumstances, Labrador Iron Ore Royalty Corporation pays cash dividends from the free cash flow generated from IOC to the maximum extent possible, subject to the maintenance of appropriate levels of working capital. The firm generates the majority of its revenue in the form of royalty income.
79GF Score
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