CHSCHSCN.PFD -0.60% ROA % is 5.89% as of Feb. 2019, which is 36% below its 10-year median of 9.21. The stock has 1 warning sign investors should review.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. CHS's annualizedNet Income for the quarter that ended in Feb. 2019 was $995.06 Mil.
CHS's average Total Assets over the quarter that ended in Feb. 2019 was $16,894.97 Mil. Therefore, CHS's annualized ROA % for the quarter that ended in Feb. 2019 was 5.89%.
The historical rank and industry rank for CHS's ROA % or its related term are showing as below:
CHSCN.PFD'
s ROA % Range Over the Past 10 Years
Min: 2.39 Med: 9.21 Max: 12.94
Current: 2.39
During the past 13 years, CHS's highest ROA % was 12.94%. The lowest was 2.39%. And the median was 9.21%.
CHSCN.PFD's ROA % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 3.275
vs CHSCN.PFD: 2.39
CHS (NAS:CHSCN.PFD) 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 (Feb. 2019) net income data. The Revenue data used here is four times the quarterly (Feb. 2019) 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.
CHS ROA % Related Terms
CHS ROA % Historical Data
* Premium members only.
The historical data trend for CHS'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 Products subindustry, CHS'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.
CHS ROA % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's ROA % distribution charts can be found below:
* The bar in red indicates where CHS'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 (Feb. 2019) net income data.
ROA % is displayed in the 30-year financial page.
CHS (CHSCN.PFD) has a ROA % of 5.89% as of Feb. 2019. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on CHS and its competitors. This is 36% below median its historical median of 9.21. Over the past decade, CHS's ROA % has ranged from 2.39 to 12.94.
Is CHS's ROA % too high?
CHS's current ROA % of 5.89% is 36% below median its 10-year median of 9.21. Over the past 10 years, this metric has ranged from a low of 2.39 to a high of 12.94. The Consumer Packaged Goods industry median ROA % is 3.28. CHS's value of 5.89% is 79.8% above this industry median.
How does CHS's ROA % compare to RSSFF and NWGFF?
CHS's ROA % of 5.89% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROA % is 3.28. CHS's value of 5.89% is 79.8% above this benchmark. Historically, CHS's own ROA % has ranged from 2.39 to 12.94 over the past decade. While the company's 10-year median is 9.21 vs. the industry median of 3.28, CHS 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 Consumer Packaged Goods company?
The median ROA % among Consumer Packaged Goods companies is 3.28, based on 1,990 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. CHS's current ROA % of 5.89% is 79.8% 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 CHS and its competitors. For the Consumer Packaged Goods industry, the median ROA % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CHS's current ROA % is 5.89%, which is 36% below median its own 10-year median of 9.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHS stock overvalued right now?
CHS (CHSCN.PFD) has a current ROA % of 5.89%. The current ROA % is 5.89%, which is 36% below median its 10-year median of 9.21 and 79.8% above the Consumer Packaged Goods industry median of 3.28. 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 CHS (CHSCN.PFD), the current ROA % is 5.89% as of Feb. 2019. 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.
CHS Inc is an integrated agricultural enterprise, that provides grain, food, and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Geographically, the company derives maximum revenue from North America and the rest from South America, Asia Pacific, Europe, Middle East, and Africa (EMEA).
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