Volvo ABVOLAF -1.64%92 ROA % is 4.99% as of Mar. 2026, which is 12% below its 10-year median of 5.65. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $28.60 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 212 Farm & Heavy Construction Machinery companies, Volvo AB ranks better than 60.85% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Volvo AB's annualizedNet Income for the quarter that ended in Mar. 2026 was $3,570 Mil.
Volvo AB's average Total Assets over the quarter that ended in Mar. 2026 was $71,520 Mil. Therefore, Volvo AB's annualized ROA % for the quarter that ended in Mar. 2026 was 4.99%.
The historical rank and industry rank for Volvo AB's ROA % or its related term are showing as below:
VOLAF'
s ROA % Range Over the Past 10 Years
Min: 3.4 Med: 5.65 Max: 7.65
Current: 4.92
During the past 13 years, Volvo AB's highest ROA % was 7.65%. The lowest was 3.40%. And the median was 5.65%.
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.
Volvo AB ROA % Related Terms
Volvo AB ROA % Historical Data
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The historical data trend for Volvo AB'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 Farm & Heavy Construction Machinery subindustry, Volvo AB'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.
Volvo AB ROA % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's ROA % distribution charts can be found below:
* The bar in red indicates where Volvo AB'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.
Volvo AB (VOLAF) has a ROA % of 4.99% 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 Volvo AB and its competitors. This is 12% below median its historical median of 5.65. Over the past decade, Volvo AB's ROA % has ranged from 3.40 to 7.65. According to the industry distribution chart, Volvo AB ranks #83 out of 212 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 39.2%.
Is Volvo AB's ROA % too high?
Volvo AB's current ROA % of 4.99% is 12% below median its 10-year median of 5.65. Over the past 10 years, this metric has ranged from a low of 3.40 to a high of 7.65. The Farm & Heavy Construction Machinery industry median ROA % is 3.80. Volvo AB's value of 4.99% is 31.3% above this industry median. Based on the distribution chart, Volvo AB ranks #83 out of 212 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Volvo AB has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's ROA % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #83 out of 212 companies for ROA %. This puts Volvo AB in the upper half of its industry. The industry median ROA % is 3.80. Volvo AB's value of 4.99% is 31.3% above this benchmark. Historically, Volvo AB's own ROA % has ranged from 3.40 to 7.65 over the past decade. While the company's 10-year median is 5.65 vs. the industry median of 3.80, Volvo AB 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 Farm & Heavy Construction Machinery company?
The median ROA % among Farm & Heavy Construction Machinery companies is 3.80, based on 212 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. Volvo AB's current ROA % of 4.99% is 31.3% 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 Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROA % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current ROA % is 4.99%, which is 12% below median its own 10-year median of 5.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $28.60, compared to a current price of $34.15 — trading 19.4% above its estimated fair value. The current ROA % is 4.99%, which is 12% below median its 10-year median of 5.65 and 31.3% above the Farm & Heavy Construction Machinery industry median of 3.80. Volvo AB's overall GF Score™ is 92/100 with 6 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 Volvo AB (VOLAF), the current ROA % is 4.99% 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 Volvo AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $34.15 is trading 19.4% above its estimated GF Value™ of $28.60.
GuruFocus considers Volvo AB to be Modestly Overvalued.
Key valuation signals for VOLAF:
ROA %: 4.99% (12% below median its 10-year median of 5.65)
GF Value™: $28.60 vs. price of $34.15 (19.4% above fair value)
Industry Position: 31.3% above the Farm & Heavy Construction Machinery median (#83 of 212)
No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
92GF Score
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