CHIX:MCp's ROA % is ranked better than 76.63% of 1134
companies
in the Retail - Cyclical industry
Industry Median: 2.715
vs CHIX:MCp: 7.54
Lvmh Moet Hennessy Louis Vuitton SE (CHIX:MCp) 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.
Lvmh Moet Hennessy Louis Vuitton SE ROA % Related Terms
Lvmh Moet Hennessy Louis Vuitton SE ROA % Historical 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.
For the Luxury Goods subindustry, Lvmh Moet Hennessy Louis Vuitton SE'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.
Lvmh Moet Hennessy Louis Vuitton SE ROA % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lvmh Moet Hennessy Louis Vuitton SE's ROA % distribution charts can be found below:
* The bar in red indicates where Lvmh Moet Hennessy Louis Vuitton SE'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.
Lvmh Moet Hennessy Louis Vuitton SE (CHIX:MCP) has a ROA % of 7.31% 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 Lvmh Moet Hennessy Louis Vuitton SE and its competitors. This is 14% below median its historical median of 8.49. Over the past decade, Lvmh Moet Hennessy Louis Vuitton SE's ROA % has ranged from 4.58 to 10.90. According to the industry distribution chart, Lvmh Moet Hennessy Louis Vuitton SE ranks #265 out of 1134 companies in the Retail - Cyclical industry, placing it in the top 23.4%.
Is Lvmh Moet Hennessy Louis Vuitton SE's ROA % too high?
Lvmh Moet Hennessy Louis Vuitton SE's current ROA % of 7.31% is 14% below median its 10-year median of 8.49. Over the past 10 years, this metric has ranged from a low of 4.58 to a high of 10.90. The Retail - Cyclical industry median ROA % is 2.72. Lvmh Moet Hennessy Louis Vuitton SE's value of 7.31% is 169.2% above this industry median. Based on the distribution chart, Lvmh Moet Hennessy Louis Vuitton SE ranks #265 out of 1134 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Lvmh Moet Hennessy Louis Vuitton SE has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lvmh Moet Hennessy Louis Vuitton SE's ROA % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Lvmh Moet Hennessy Louis Vuitton SE ranks #265 out of 1134 companies for ROA %. This places Lvmh Moet Hennessy Louis Vuitton SE in the top 23% of its industry — outperforming the majority of peers. The industry median ROA % is 2.72. Lvmh Moet Hennessy Louis Vuitton SE's value of 7.31% is 169.2% above this benchmark. Historically, Lvmh Moet Hennessy Louis Vuitton SE's own ROA % has ranged from 4.58 to 10.90 over the past decade. While the company's 10-year median is 8.49 vs. the industry median of 2.72, Lvmh Moet Hennessy Louis Vuitton SE 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 Retail - Cyclical company?
The median ROA % among Retail - Cyclical companies is 2.72, based on 1,134 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. Lvmh Moet Hennessy Louis Vuitton SE's current ROA % of 7.31% is 169.2% 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 Lvmh Moet Hennessy Louis Vuitton SE and its competitors. For the Retail - Cyclical industry, the median ROA % is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lvmh Moet Hennessy Louis Vuitton SE's current ROA % is 7.31%, which is 14% below median its own 10-year median of 8.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lvmh Moet Hennessy Louis Vuitton SE stock overvalued right now?
Based on GuruFocus' analysis, Lvmh Moet Hennessy Louis Vuitton SE (CHIX:MCP) is currently considered Modestly Undervalued. The stock's GF Value™ is €640.00, compared to a current price of €492.15 — trading 23.1% below its estimated fair value. The current ROA % is 7.31%, which is 14% below median its 10-year median of 8.49 and 169.2% above the Retail - Cyclical industry median of 2.72. Lvmh Moet Hennessy Louis Vuitton SE's overall GF Score™ is 90/100 with 2 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 Lvmh Moet Hennessy Louis Vuitton SE (CHIX:MCP), the current ROA % is 7.31% 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 Lvmh Moet Hennessy Louis Vuitton SE (CHIX:MCP) Overvalued in 2026?
Based on GuruFocus' analysis, Lvmh Moet Hennessy Louis Vuitton SE stock appears to be undervalued.
The current stock price of €492.15 is trading 23.1% below its estimated GF Value™ of €640.00.
GuruFocus considers Lvmh Moet Hennessy Louis Vuitton SE to be Modestly Undervalued.
Key valuation signals for CHIX:MCP:
ROA %: 7.31% (14% below median its 10-year median of 8.49)
GF Value™: €640.00 vs. price of €492.15 (23.1% below fair value)
Industry Position: 169.2% above the Retail - Cyclical median (#265 of 1134)
No single metric tells the full story. See the CHIX:MCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lvmh Moet Hennessy Louis Vuitton SE Business Description
LVMH is a global producer and distributor of luxury goods. It operates six segments: fashion and leather goods, its largest and most profitable; watches and jewelry; wines and spirits; perfumes and cosmetics; selective retailing (including Sephora and airport duty-free retailer DFS); and other. Higher-profile brands include Louis Vuitton, Bulgari, Fendi, Givenchy, Tag Heuer, Hennessy, Moet & Chandon, Glenmorangie, Sephora, and Benefit. LVMH operates over 5,000 stores around the globe.
90GF Score
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