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Morimatsu International Holdings Co (FRA:1S5) 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.
Morimatsu International Holdings Co ROA % Related Terms
Morimatsu International Holdings Co 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 Specialty Industrial Machinery subindustry, Morimatsu International Holdings Co'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.
Morimatsu International Holdings Co ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Morimatsu International Holdings Co's ROA % distribution charts can be found below:
* The bar in red indicates where Morimatsu International Holdings Co'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.
Morimatsu International Holdings Co (FRA:1S5) has a ROA % of 5.30% 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 Morimatsu International Holdings Co and its competitors. This is 35% below median its historical median of 8.16. Over the past decade, Morimatsu International Holdings Co's ROA % has ranged from 0.26 to 9.90. According to the industry distribution chart, Morimatsu International Holdings Co ranks #857 out of 3074 companies in the Industrial Products industry, placing it in the top 27.9%.
Is Morimatsu International Holdings Co's ROA % too high?
Morimatsu International Holdings Co's current ROA % of 5.30% is 35% below median its 10-year median of 8.16. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 9.90. The Industrial Products industry median ROA % is 3.05. Morimatsu International Holdings Co's value of 5.30% is 73.8% above this industry median. Based on the distribution chart, Morimatsu International Holdings Co ranks #857 out of 3074 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Morimatsu International Holdings Co has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does Morimatsu International Holdings Co's ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Morimatsu International Holdings Co ranks #857 out of 3074 companies for ROA %. This puts Morimatsu International Holdings Co in the upper half of its industry. The industry median ROA % is 3.05. Morimatsu International Holdings Co's value of 5.30% is 73.8% above this benchmark. Historically, Morimatsu International Holdings Co's own ROA % has ranged from 0.26 to 9.90 over the past decade. While the company's 10-year median is 8.16 vs. the industry median of 3.05, Morimatsu International Holdings Co 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 Industrial Products company?
The median ROA % among Industrial Products companies is 3.05, based on 3,074 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. Morimatsu International Holdings Co's current ROA % of 5.30% is 73.8% 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 Morimatsu International Holdings Co and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morimatsu International Holdings Co's current ROA % is 5.30%, which is 35% below median its own 10-year median of 8.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morimatsu International Holdings Co stock overvalued right now?
Morimatsu International Holdings Co (FRA:1S5) has a current ROA % of 5.30%. The stock's GF Value™ is €0.68, compared to a current price of €0.74 — trading 8.8% above its estimated fair value. The current ROA % is 5.30%, which is 35% below median its 10-year median of 8.16 and 73.8% above the Industrial Products industry median of 3.05. Morimatsu International Holdings Co's overall GF Score™ is 91/100 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 Morimatsu International Holdings Co (FRA:1S5), the current ROA % is 5.30% 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 Morimatsu International Holdings Co (FRA:1S5) Overvalued in 2026?
Based on GuruFocus' analysis, Morimatsu International Holdings Co stock appears to be overvalued.
The current stock price of €0.74 is trading 8.8% above its estimated GF Value™ of €0.68.
Key valuation signals for FRA:1S5:
ROA %: 5.30% (35% below median its 10-year median of 8.16)
GF Value™: €0.68 vs. price of €0.74 (8.8% above fair value)
Industry Position: 73.8% above the Industrial Products median (#857 of 3074)
No single metric tells the full story. See the FRA:1S5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morimatsu International Holdings Co Ltd Groups principal activities are the design, manufacture, installation and operation and maintenance of core equipment, process system (such as process module) and total solutions mainly for chemical reactions, biological reactions and polymerization. The Group currently provides services to downstream industries/fields, including oil and gas refinery, family care, new chemical materials, pharmaceuticals, raw materials for power batteries and electronic chemicals, etc. The Group has determined that it only has one operating segment. The company has presence in Mainland China, North America, Asia (excluding mainland China), Europe, and Africa. The company generates majority of revenue from Asia.
91GF Score
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