Kumagai Gumi CoFRA:KUG1 +1.36%80 ROA % is 7.14% as of Mar. 2026, which is 66% above its 10-year median of 4.31. GuruFocus rates FRA:KUG1 with a GF Score™ of 80/100 and a GF Value™ of €5.86 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,777 Construction companies, Kumagai Gumi Co ranks better than 62.24% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kumagai Gumi Co's annualizedNet Income for the quarter that ended in Mar. 2026 was €177 Mil.
Kumagai Gumi Co's average Total Assets over the quarter that ended in Mar. 2026 was €2,473 Mil. Therefore, Kumagai Gumi Co's annualized ROA % for the quarter that ended in Mar. 2026 was 7.14%.
The historical rank and industry rank for Kumagai Gumi Co's ROA % or its related term are showing as below:
FRA:KUG1'
s ROA % Range Over the Past 10 Years
Min: 1.97 Med: 4.31 Max: 6.23
Current: 4.45
During the past 13 years, Kumagai Gumi Co's highest ROA % was 6.23%. The lowest was 1.97%. And the median was 4.31%.
FRA:KUG1's ROA % is ranked better than 62.24% of 1777
companies
in the Construction industry
Industry Median: 2.79
vs FRA:KUG1: 4.45
Kumagai Gumi Co (FRA:KUG1) 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.
Kumagai Gumi Co ROA % Related Terms
Kumagai Gumi Co ROA % Historical Data
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The historical data trend for Kumagai Gumi Co'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 Engineering & Construction subindustry, Kumagai Gumi 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.
Kumagai Gumi Co ROA % vs Construction Industry
For the Construction industry and Industrials sector, Kumagai Gumi Co's ROA % distribution charts can be found below:
* The bar in red indicates where Kumagai Gumi 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 four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Kumagai Gumi Co (FRA:KUG1) has a ROA % of 7.14% 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 Kumagai Gumi Co and its competitors. This is 66% above median its historical median of 4.31. Over the past decade, Kumagai Gumi Co's ROA % has ranged from 1.97 to 6.23. According to the industry distribution chart, Kumagai Gumi Co ranks #671 out of 1777 companies in the Construction industry, placing it in the top 37.8%.
Is Kumagai Gumi Co's ROA % too high?
Kumagai Gumi Co's current ROA % of 7.14% is 66% above median its 10-year median of 4.31. Over the past 10 years, this metric has ranged from a low of 1.97 to a high of 6.23. The Construction industry median ROA % is 2.79. Kumagai Gumi Co's value of 7.14% is 155.9% above this industry median. Based on the distribution chart, Kumagai Gumi Co ranks #671 out of 1777 companies in the Construction industry, which is above the industry midpoint. Overall, Kumagai Gumi Co has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kumagai Gumi Co's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Kumagai Gumi Co ranks #671 out of 1777 companies for ROA %. This puts Kumagai Gumi Co in the upper half of its industry. The industry median ROA % is 2.79. Kumagai Gumi Co's value of 7.14% is 155.9% above this benchmark. Historically, Kumagai Gumi Co's own ROA % has ranged from 1.97 to 6.23 over the past decade. While the company's 10-year median is 4.31 vs. the industry median of 2.79, Kumagai Gumi 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 a Construction company?
The median ROA % among Construction companies is 2.79, based on 1,777 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. Kumagai Gumi Co's current ROA % of 7.14% is 155.9% 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 Kumagai Gumi Co and its competitors. For the Construction industry, the median ROA % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumagai Gumi Co's current ROA % is 7.14%, which is 66% above median its own 10-year median of 4.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kumagai Gumi Co stock overvalued right now?
Based on GuruFocus' analysis, Kumagai Gumi Co (FRA:KUG1) is currently considered Modestly Overvalued. The stock's GF Value™ is €5.86, compared to a current price of €7.45 — trading 27.1% above its estimated fair value. The current ROA % is 7.14%, which is 66% above median its 10-year median of 4.31 and 155.9% above the Construction industry median of 2.79. Kumagai Gumi Co'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 Kumagai Gumi Co (FRA:KUG1), the current ROA % is 7.14% 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 Kumagai Gumi Co (FRA:KUG1) Overvalued in 2026?
Based on GuruFocus' analysis, Kumagai Gumi Co stock appears to be overvalued.
The current stock price of €7.45 is trading 27.1% above its estimated GF Value™ of €5.86.
GuruFocus considers Kumagai Gumi Co to be Modestly Overvalued.
Key valuation signals for FRA:KUG1:
ROA %: 7.14% (66% above median its 10-year median of 4.31)
GF Value™: €5.86 vs. price of €7.45 (27.1% above fair value)
Industry Position: 155.9% above the Construction median (#671 of 1777)
No single metric tells the full story. See the FRA:KUG1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kumagai Gumi Co Ltd is a Japanese company that provides services in construction and civil engineering. The company analyzes, designs, and supervises complex construction projects. It also offers engineering and technical services throughout the construction process. These projects include roads, railways, airports, water systems, and other public facilities. In addition, the company is engaged in manufacturing and selling construction materials and machinery. Construction activities account for the majority of revenue. The company generates additional revenue from developing residential and commercial complexes and either operating the building or acting as a broker and selling the real estate.
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