Lynas Rare EarthsASX:LYC +4.03%78 ROA % is 4.62% as of Dec. 2025, which is 8% below its 10-year median of 5.02. GuruFocus rates ASX:LYC with a GF Score™ of 78/100 and a GF Value™ of A$13.70 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,665 Metals & Mining companies, Lynas Rare Earths ranks better than 79.81% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lynas Rare Earths's annualizedNet Income for the quarter that ended in Dec. 2025 was A$160.4 Mil.
Lynas Rare Earths's average Total Assets over the quarter that ended in Dec. 2025 was A$3,469.5 Mil. Therefore, Lynas Rare Earths's annualized ROA % for the quarter that ended in Dec. 2025 was 4.62%.
The historical rank and industry rank for Lynas Rare Earths's ROA % or its related term are showing as below:
ASX:LYC'
s ROA % Range Over the Past 10 Years
Min: -11.53 Med: 5.02 Max: 25.47
Current: 2.51
During the past 13 years, Lynas Rare Earths's highest ROA % was 25.47%. The lowest was -11.53%. And the median was 5.02%.
ASX:LYC's ROA % is ranked better than 79.81% of 2665
companies
in the Metals & Mining industry
Industry Median: -16.81
vs ASX:LYC: 2.51
Lynas Rare Earths (ASX:LYC) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (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.
Lynas Rare Earths ROA % Related Terms
Lynas Rare Earths ROA % Historical Data
* Premium members only.
The historical data trend for Lynas Rare Earths'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 Other Industrial Metals & Mining subindustry, Lynas Rare Earths'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.
Lynas Rare Earths ROA % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lynas Rare Earths's ROA % distribution charts can be found below:
* The bar in red indicates where Lynas Rare Earths'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Lynas Rare Earths (ASX:LYC) has a ROA % of 4.62% 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 Lynas Rare Earths and its competitors. This is near median its historical median of 5.02. According to the industry distribution chart, Lynas Rare Earths ranks #538 out of 2665 companies in the Metals & Mining industry, placing it in the top 20.2%.
Is Lynas Rare Earths' ROA % too high?
Lynas Rare Earths' current ROA % of 4.62% is near median its 10-year median of 5.02. Based on the distribution chart, Lynas Rare Earths ranks #538 out of 2665 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Lynas Rare Earths has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lynas Rare Earths' ROA % compare to competitors?
According to the Metals & Mining industry distribution chart, Lynas Rare Earths ranks #538 out of 2665 companies for ROA %. This places Lynas Rare Earths in the top 20% of its industry — outperforming the majority of peers. 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 Metals & Mining company?
A good ROA % depends on the Metals & Mining industry context. 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 Lynas Rare Earths and its competitors. Lynas Rare Earths's current ROA % is 4.62%, which is near median its own 10-year median of 5.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lynas Rare Earths stock overvalued right now?
Based on GuruFocus' analysis, Lynas Rare Earths (ASX:LYC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$13.70, compared to a current price of A$19.34 — trading 41.2% above its estimated fair value. The current ROA % is 4.62%, which is near median its 10-year median of 5.02. Lynas Rare Earths' overall GF Score™ is 78/100 with 3 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 Lynas Rare Earths (ASX:LYC), the current ROA % is 4.62% 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.
Is Lynas Rare Earths (ASX:LYC) Overvalued in 2026?
Based on GuruFocus' analysis, Lynas Rare Earths stock appears to be overvalued.
The current stock price of A$19.34 is trading 41.2% above its estimated GF Value™ of A$13.70.
GuruFocus considers Lynas Rare Earths to be Significantly Overvalued.
Key valuation signals for ASX:LYC:
ROA %: 4.62% (near median its 10-year median of 5.02)
GF Value™: A$13.70 vs. price of A$19.34 (41.2% above fair value)
No single metric tells the full story. See the ASX:LYC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lynas is the largest rare-earth producer outside China. It owns the high-grade Mount Weld deposit in Western Australia and rare-earth processing facilities in Kalgoorlie and Malaysia. We estimate that Mount Weld is the world's lowest-cost producer of separated neodymium and praseodymium, light rare-earth materials, which are sold to customers in the form of neodymium-praseodymium oxide with a mine life exceeding 20 years. As of December 2025, Lynas is also the only producer of separated heavy rare-earth dysprosium and terbium outside China. The company is further expanding NdPr capacity while diversifying into producing additional separated rare-earth materials, including samarium. It also intends to move downstream into rare-earth metal and magnet production.
78GF Score
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