Romande Energie HoldingXSWX:REHN +0.42%71 ROA % is 2.77% as of Jun. 2025, which is 46% above its 10-year median of 1.90. GuruFocus rates XSWX:REHN with a GF Score™ of 71/100 and a GF Value™ of CHF46.45 (Fairly Valued). The stock has 8 warning signs investors should review. Among 448 Utilities - Independent Power Producers companies, Romande Energie Holding ranks worse than 64.73% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Romande Energie Holding's annualizedNet Income for the quarter that ended in Jun. 2025 was CHF77.5 Mil.
Romande Energie Holding's average Total Assets over the quarter that ended in Jun. 2025 was CHF2,794.3 Mil. Therefore, Romande Energie Holding's annualized ROA % for the quarter that ended in Jun. 2025 was 2.77%.
The historical rank and industry rank for Romande Energie Holding's ROA % or its related term are showing as below:
XSWX:REHN'
s ROA % Range Over the Past 10 Years
Min: -0.26 Med: 1.9 Max: 5.75
Current: -0.08
During the past 13 years, Romande Energie Holding's highest ROA % was 5.75%. The lowest was -0.26%. And the median was 1.90%.
Romande Energie Holding (XSWX:REHN) 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 two times the semi-annual (Jun. 2025) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
Romande Energie Holding ROA % Competitor Comparison
For the Utilities - Renewable subindustry, Romande Energie Holding'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.
Romande Energie Holding ROA % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Romande Energie Holding's ROA % distribution charts can be found below:
* The bar in red indicates where Romande Energie Holding'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 (Jun. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Romande Energie Holding (XSWX:REHN) has a ROA % of 2.77% as of Jun. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Romande Energie Holding and its competitors. This is 46% above median its historical median of 1.90. According to the industry distribution chart, Romande Energie Holding ranks #290 out of 448 companies in the Utilities - Independent Power Producers industry, placing it in the top 64.7%.
Is Romande Energie Holding's ROA % too high?
Romande Energie Holding's current ROA % of 2.77% is 46% above median its 10-year median of 1.90. The Utilities - Independent Power Producers industry median ROA % is 1.17. Romande Energie Holding's value of 2.77% is 137.8% above this industry median. Based on the distribution chart, Romande Energie Holding ranks #290 out of 448 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Romande Energie Holding has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Romande Energie Holding's ROA % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Romande Energie Holding ranks #290 out of 448 companies for ROA %. This places Romande Energie Holding in the lower half of its industry. The industry median ROA % is 1.17. Romande Energie Holding's value of 2.77% is 137.8% above this benchmark. While the company's 10-year median is 1.90 vs. the industry median of 1.17, Romande Energie Holding 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 Utilities - Independent Power Producers company?
The median ROA % among Utilities - Independent Power Producers companies is 1.17, based on 448 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. Romande Energie Holding's current ROA % of 2.77% is 137.8% 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 Romande Energie Holding and its competitors. For the Utilities - Independent Power Producers industry, the median ROA % is 1.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Romande Energie Holding's current ROA % is 2.77%, which is 46% above median its own 10-year median of 1.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Romande Energie Holding stock overvalued right now?
Based on GuruFocus' analysis, Romande Energie Holding (XSWX:REHN) is currently considered Fairly Valued. The stock's GF Value™ is CHF46.45, compared to a current price of CHF47.90 — trading 3.1% above its estimated fair value. The current ROA % is 2.77%, which is 46% above median its 10-year median of 1.90 and 137.8% above the Utilities - Independent Power Producers industry median of 1.17. Romande Energie Holding's overall GF Score™ is 71/100 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 Romande Energie Holding (XSWX:REHN), the current ROA % is 2.77% as of Jun. 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 Romande Energie Holding (XSWX:REHN) Overvalued in 2026?
Based on GuruFocus' analysis, Romande Energie Holding stock appears to be overvalued.
The current stock price of CHF47.90 is trading 3.1% above its estimated GF Value™ of CHF46.45.
GuruFocus considers Romande Energie Holding to be Fairly Valued.
Key valuation signals for XSWX:REHN:
ROA %: 2.77% (46% above median its 10-year median of 1.90)
GF Value™: CHF46.45 vs. price of CHF47.90 (3.1% above fair value)
Industry Position: 137.8% above the Utilities - Independent Power Producers median (#290 of 448)
No single metric tells the full story. See the XSWX:REHN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Romande Energie Holding SA is a Swiss utility company involved in the generation, distribution, and marketing of electricity and energy services. The company's segment includes Grids; Energy Solutions; Romande Energie Services and Corporate. It generates maximum revenue from the Energy Solutions segment. The Energy Solutions business unit spans the entire kWh chain, operating through two divisions: generation and power/heating distribution; and end-markets. The Energy division's main mission is to maintain the security of supply for customers. It also develops new installations powered by renewable energy sources. The Markets division offers turnkey solutions to its various customers.
71GF Score
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