The Japan Steel WorksFRA:J9R -2.24%81 ROA % is 4.07% as of Mar. 2026, which is 5% above its 10-year median of 3.87. GuruFocus rates FRA:J9R with a GF Score™ of 81/100 and a GF Value™ of €33.49 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 3,074 Industrial Products companies, The Japan Steel Works ranks better than 62.3% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Japan Steel Works's annualizedNet Income for the quarter that ended in Mar. 2026 was €94 Mil.
The Japan Steel Works's average Total Assets over the quarter that ended in Mar. 2026 was €2,302 Mil. Therefore, The Japan Steel Works's annualized ROA % for the quarter that ended in Mar. 2026 was 4.07%.
The historical rank and industry rank for The Japan Steel Works's ROA % or its related term are showing as below:
FRA:J9R'
s ROA % Range Over the Past 10 Years
Min: -1.75 Med: 3.87 Max: 6.62
Current: 4.74
During the past 13 years, The Japan Steel Works's highest ROA % was 6.62%. The lowest was -1.75%. And the median was 3.87%.
FRA:J9R's ROA % is ranked better than 62.3% of 3074
companies
in the Industrial Products industry
Industry Median: 3.045
vs FRA:J9R: 4.74
The Japan Steel Works (FRA:J9R) 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.
* 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, The Japan Steel Works'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.
The Japan Steel Works ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Japan Steel Works's ROA % distribution charts can be found below:
* The bar in red indicates where The Japan Steel Works'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.
The Japan Steel Works (FRA:J9R) has a ROA % of 4.07% 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 The Japan Steel Works and its competitors. This is near median its historical median of 3.87. According to the industry distribution chart, The Japan Steel Works ranks #1159 out of 3074 companies in the Industrial Products industry, placing it in the top 37.7%.
Is The Japan Steel Works' ROA % too high?
The Japan Steel Works' current ROA % of 4.07% is near median its 10-year median of 3.87. The Industrial Products industry median ROA % is 3.05. The Japan Steel Works' value of 4.07% is 33.7% above this industry median. Based on the distribution chart, The Japan Steel Works ranks #1159 out of 3074 companies in the Industrial Products industry, which is above the industry midpoint. Overall, The Japan Steel Works has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Japan Steel Works' ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, The Japan Steel Works ranks #1159 out of 3074 companies for ROA %. This puts The Japan Steel Works in the upper half of its industry. The industry median ROA % is 3.05. The Japan Steel Works' value of 4.07% is 33.7% above this benchmark. While the company's 10-year median is 3.87 vs. the industry median of 3.05, The Japan Steel Works 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. The Japan Steel Works's current ROA % of 4.07% is 33.7% 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 The Japan Steel Works 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. The Japan Steel Works's current ROA % is 4.07%, which is near median its own 10-year median of 3.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Japan Steel Works stock overvalued right now?
Based on GuruFocus' analysis, The Japan Steel Works (FRA:J9R) is currently considered Modestly Overvalued. The stock's GF Value™ is €33.49, compared to a current price of €40.54 — trading 21.1% above its estimated fair value. The current ROA % is 4.07%, which is near median its 10-year median of 3.87 and 33.7% above the Industrial Products industry median of 3.05. The Japan Steel Works' overall GF Score™ is 81/100 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 The Japan Steel Works (FRA:J9R), the current ROA % is 4.07% 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 The Japan Steel Works (FRA:J9R) Overvalued in 2026?
Based on GuruFocus' analysis, The Japan Steel Works stock appears to be overvalued.
The current stock price of €40.54 is trading 21.1% above its estimated GF Value™ of €33.49.
GuruFocus considers The Japan Steel Works to be Modestly Overvalued.
Key valuation signals for FRA:J9R:
ROA %: 4.07% (near median its 10-year median of 3.87)
GF Value™: €33.49 vs. price of €40.54 (21.1% above fair value)
Industry Position: 33.7% above the Industrial Products median (#1159 of 3074)
No single metric tells the full story. See the FRA:J9R stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Japan Steel Works Ltd provides industrial machinery as well as materials and engineering solutions in Japan and internationally. The company operates through two segments. The Industrial Machinery segment provides resin manufacturing and processing machinery, molding machines, defense-related equipment, and other industrial machinery. The Materials and Engineering segment covers raw material products and engineering operations. The Other segment includes the film deposition business, crystal business, and related activities. It generates the majority of its revenue from the Industrial machinery business segment.
81GF Score
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