LG ElectronicsCHIX:LGLDL 80 ROA % is 4.63% as of Mar. 2026, which is 168% above its 10-year median of 1.73. GuruFocus rates CHIX:LGLDL with a GF Score™ of 80/100 and a GF Value™ of $8.07. The stock has 5 warning signs investors should review. Among 2,498 Hardware companies, LG Electronics ranks worse than 55.76% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LG Electronics's annualizedNet Income for the quarter that ended in Mar. 2026 was $2,189 Mil.
LG Electronics's average Total Assets over the quarter that ended in Mar. 2026 was $47,310 Mil. Therefore, LG Electronics's annualized ROA % for the quarter that ended in Mar. 2026 was 4.63%.
The historical rank and industry rank for LG Electronics's ROA % or its related term are showing as below:
CHIX:LGLDl'
s ROA % Range Over the Past 10 Years
Min: 0.07 Med: 1.73 Max: 4.36
Current: 1.46
During the past 13 years, LG Electronics's highest ROA % was 4.36%. The lowest was 0.07%. And the median was 1.73%.
CHIX:LGLDl's ROA % is ranked worse than 55.76% of 2498
companies
in the Hardware industry
Industry Median: 2.27
vs CHIX:LGLDl: 1.46
LG Electronics (CHIX:LGLDl) 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.
LG Electronics ROA % Related Terms
LG Electronics ROA % Historical Data
* Premium members only.
The historical data trend for LG Electronics'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 Consumer Electronics subindustry, LG Electronics'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.
LG Electronics ROA % vs Hardware Industry
For the Hardware industry and Technology sector, LG Electronics's ROA % distribution charts can be found below:
* The bar in red indicates where LG Electronics'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.
LG Electronics (CHIX:LGLDL) has a ROA % of 4.63% 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 LG Electronics and its competitors. This is 168% above median its historical median of 1.73. Over the past decade, LG Electronics' ROA % has ranged from 0.07 to 4.36. According to the industry distribution chart, LG Electronics ranks #1393 out of 2498 companies in the Hardware industry, placing it in the top 55.8%.
Is LG Electronics' ROA % too high?
LG Electronics' current ROA % of 4.63% is 168% above median its 10-year median of 1.73. Over the past 10 years, this metric has ranged from a low of 0.07 to a high of 4.36. The Hardware industry median ROA % is 2.27. LG Electronics' value of 4.63% is 104% above this industry median. Based on the distribution chart, LG Electronics ranks #1393 out of 2498 companies in the Hardware industry, which is below the industry midpoint. Overall, LG Electronics has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does LG Electronics' ROA % compare to AAPL?
According to the Hardware industry distribution chart, LG Electronics ranks #1393 out of 2498 companies for ROA %. This places LG Electronics in the lower half of its industry. The industry median ROA % is 2.27. LG Electronics' value of 4.63% is 104% above this benchmark. Historically, LG Electronics' own ROA % has ranged from 0.07 to 4.36 over the past decade. While the company's 10-year median is 1.73 vs. the industry median of 2.27, LG Electronics 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 Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,498 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. LG Electronics's current ROA % of 4.63% is 104% 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 LG Electronics and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LG Electronics's current ROA % is 4.63%, which is 168% above median its own 10-year median of 1.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LG Electronics stock overvalued right now?
LG Electronics (CHIX:LGLDL) has a current ROA % of 4.63%. The stock's GF Value™ is $8.07, compared to a current price of $15.55 — trading 92.7% above its estimated fair value. The current ROA % is 4.63%, which is 168% above median its 10-year median of 1.73 and 104% above the Hardware industry median of 2.27. LG Electronics' overall GF Score™ is 80/100 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 LG Electronics (CHIX:LGLDL), the current ROA % is 4.63% 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 LG Electronics (CHIX:LGLDL) Overvalued in 2026?
Based on GuruFocus' analysis, LG Electronics stock appears to be overvalued.
The current stock price of $15.55 is trading 92.7% above its estimated GF Value™ of $8.07.
Key valuation signals for CHIX:LGLDL:
ROA %: 4.63% (168% above median its 10-year median of 1.73)
GF Value™: $8.07 vs. price of $15.55 (92.7% above fair value)
Industry Position: 104% above the Hardware median (#1393 of 2498)
No single metric tells the full story. See the CHIX:LGLDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LG Electronics Inc is a South Korea-based company that produces a broad range of electronic products. The group has six reportable segments: the Home Appliance & Air Solution segment, which includes refrigerators, washing machines, air conditioners and vacuum cleaners; the Home Entertainment segment, which covers TVs, audio devices and related products; the Vehicle Component Solutions segment, which provides automobile parts and modules; the Business Solutions segment, which offers monitors, PCs and information displays; the LG Innotek segment, which supplies camera modules, substrate materials and various motors and sensors; and the All Other segment, which includes equipment manufacturing and other ancillary operations.
80GF Score
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