Hikari TsushinFRA:HIK -3.68%80 ROA % is 5.49% as of Mar. 2026, which is 11% below its 10-year median of 6.14. GuruFocus rates FRA:HIK with a GF Score™ of 80/100 and a GF Value™ of €218.29 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 567 Conglomerates companies, Hikari Tsushin ranks better than 78.13% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hikari Tsushin's annualizedNet Income for the quarter that ended in Mar. 2026 was €836 Mil.
Hikari Tsushin's average Total Assets over the quarter that ended in Mar. 2026 was €15,218 Mil. Therefore, Hikari Tsushin's annualized ROA % for the quarter that ended in Mar. 2026 was 5.49%.
The historical rank and industry rank for Hikari Tsushin's ROA % or its related term are showing as below:
FRA:HIK'
s ROA % Range Over the Past 10 Years
Min: 4.9 Med: 6.14 Max: 8.49
Current: 5.87
During the past 13 years, Hikari Tsushin's highest ROA % was 8.49%. The lowest was 4.90%. And the median was 6.14%.
FRA:HIK's ROA % is ranked better than 78.13% of 567
companies
in the Conglomerates industry
Industry Median: 2.49
vs FRA:HIK: 5.87
Hikari Tsushin (FRA:HIK) 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.
Hikari Tsushin ROA % Related Terms
Hikari Tsushin ROA % Historical Data
* Premium members only.
The historical data trend for Hikari Tsushin'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 Conglomerates subindustry, Hikari Tsushin'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.
Hikari Tsushin ROA % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Tsushin's ROA % distribution charts can be found below:
* The bar in red indicates where Hikari Tsushin'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.
Hikari Tsushin (FRA:HIK) has a ROA % of 5.49% 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 Hikari Tsushin and its competitors. This is 11% below median its historical median of 6.14. Over the past decade, Hikari Tsushin's ROA % has ranged from 4.90 to 8.49. According to the industry distribution chart, Hikari Tsushin ranks #124 out of 567 companies in the Conglomerates industry, placing it in the top 21.9%.
Is Hikari Tsushin's ROA % too high?
Hikari Tsushin's current ROA % of 5.49% is 11% below median its 10-year median of 6.14. Over the past 10 years, this metric has ranged from a low of 4.90 to a high of 8.49. The Conglomerates industry median ROA % is 2.49. Hikari Tsushin's value of 5.49% is 120.5% above this industry median. Based on the distribution chart, Hikari Tsushin ranks #124 out of 567 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Hikari Tsushin has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hikari Tsushin's ROA % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hikari Tsushin ranks #124 out of 567 companies for ROA %. This places Hikari Tsushin in the top 22% of its industry — outperforming the majority of peers. The industry median ROA % is 2.49. Hikari Tsushin's value of 5.49% is 120.5% above this benchmark. Historically, Hikari Tsushin's own ROA % has ranged from 4.90 to 8.49 over the past decade. While the company's 10-year median is 6.14 vs. the industry median of 2.49, Hikari Tsushin 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 Conglomerates company?
The median ROA % among Conglomerates companies is 2.49, based on 567 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. Hikari Tsushin's current ROA % of 5.49% is 120.5% 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 Hikari Tsushin and its competitors. For the Conglomerates industry, the median ROA % is 2.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Tsushin's current ROA % is 5.49%, which is 11% below median its own 10-year median of 6.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Tsushin stock overvalued right now?
Based on GuruFocus' analysis, Hikari Tsushin (FRA:HIK) is currently considered Modestly Undervalued. The stock's GF Value™ is €218.29, compared to a current price of €183.00 — trading 16.2% below its estimated fair value. The current ROA % is 5.49%, which is 11% below median its 10-year median of 6.14 and 120.5% above the Conglomerates industry median of 2.49. Hikari Tsushin's 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 Hikari Tsushin (FRA:HIK), the current ROA % is 5.49% 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 Hikari Tsushin (FRA:HIK) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Tsushin stock appears to be undervalued.
The current stock price of €183.00 is trading 16.2% below its estimated GF Value™ of €218.29.
GuruFocus considers Hikari Tsushin to be Modestly Undervalued.
Key valuation signals for FRA:HIK:
ROA %: 5.49% (11% below median its 10-year median of 6.14)
GF Value™: €218.29 vs. price of €183.00 (16.2% below fair value)
Industry Position: 120.5% above the Conglomerates median (#124 of 567)
No single metric tells the full story. See the FRA:HIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Tsushin Inc operates as a holding company engaged in diversified businesses through seven segments: Electricity and Gas, Telecommunications, Beverages, Insurance, Finance, Solutions, and Agency Sales. The group provides electricity and gas supply, communication services, natural mineral water, non-life insurance, and warranty services, as well as financial services such as microfinance, industry-specific solution platforms, and agency sales of various products from telecommunications carriers and manufacturers. It generates the majority of its revenue from the Electricity and Gas segment.
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