Nippon Kayaku CoFRA:NP7 -0.90%84 ROA % is 5.51% as of Dec. 2025, which is 12% above its 10-year median of 4.94. GuruFocus rates FRA:NP7 with a GF Score™ of 84/100 and a GF Value™ of €9.08 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,618 Chemicals companies, Nippon Kayaku Co ranks better than 74.17% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nippon Kayaku Co's annualizedNet Income for the quarter that ended in Dec. 2025 was €123 Mil.
Nippon Kayaku Co's average Total Assets over the quarter that ended in Dec. 2025 was €2,241 Mil. Therefore, Nippon Kayaku Co's annualized ROA % for the quarter that ended in Dec. 2025 was 5.51%.
The historical rank and industry rank for Nippon Kayaku Co's ROA % or its related term are showing as below:
FRA:NP7'
s ROA % Range Over the Past 10 Years
Min: 1.2 Med: 4.94 Max: 6.38
Current: 6.33
During the past 13 years, Nippon Kayaku Co's highest ROA % was 6.38%. The lowest was 1.20%. And the median was 4.94%.
FRA:NP7's ROA % is ranked better than 74.17% of 1618
companies
in the Chemicals industry
Industry Median: 2.9
vs FRA:NP7: 6.33
Nippon Kayaku Co (FRA:NP7) 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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (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.
Nippon Kayaku Co ROA % Related Terms
Nippon Kayaku Co ROA % Historical Data
* Premium members only.
The historical data trend for Nippon Kayaku 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 Chemicals subindustry, Nippon Kayaku 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.
Nippon Kayaku Co ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Kayaku Co's ROA % distribution charts can be found below:
* The bar in red indicates where Nippon Kayaku 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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Nippon Kayaku Co (FRA:NP7) has a ROA % of 5.51% 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 Nippon Kayaku Co and its competitors. This is 12% above median its historical median of 4.94. Over the past decade, Nippon Kayaku Co's ROA % has ranged from 1.20 to 6.38. According to the industry distribution chart, Nippon Kayaku Co ranks #418 out of 1618 companies in the Chemicals industry, placing it in the top 25.8%.
Is Nippon Kayaku Co's ROA % too high?
Nippon Kayaku Co's current ROA % of 5.51% is 12% above median its 10-year median of 4.94. Over the past 10 years, this metric has ranged from a low of 1.20 to a high of 6.38. The Chemicals industry median ROA % is 2.90. Nippon Kayaku Co's value of 5.51% is 90% above this industry median. Based on the distribution chart, Nippon Kayaku Co ranks #418 out of 1618 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Kayaku Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Kayaku Co's ROA % compare to DOW?
According to the Chemicals industry distribution chart, Nippon Kayaku Co ranks #418 out of 1618 companies for ROA %. This puts Nippon Kayaku Co in the upper half of its industry. The industry median ROA % is 2.90. Nippon Kayaku Co's value of 5.51% is 90% above this benchmark. Historically, Nippon Kayaku Co's own ROA % has ranged from 1.20 to 6.38 over the past decade. While the company's 10-year median is 4.94 vs. the industry median of 2.90, Nippon Kayaku 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 Chemicals company?
The median ROA % among Chemicals companies is 2.90, based on 1,618 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. Nippon Kayaku Co's current ROA % of 5.51% is 90% 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 Nippon Kayaku Co and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Kayaku Co's current ROA % is 5.51%, which is 12% above median its own 10-year median of 4.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Kayaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Kayaku Co (FRA:NP7) is currently considered Modestly Overvalued. The stock's GF Value™ is €9.08, compared to a current price of €11.00 — trading 21.1% above its estimated fair value. The current ROA % is 5.51%, which is 12% above median its 10-year median of 4.94 and 90% above the Chemicals industry median of 2.90. Nippon Kayaku Co's overall GF Score™ is 84/100 with 7 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 Nippon Kayaku Co (FRA:NP7), the current ROA % is 5.51% 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 Nippon Kayaku Co (FRA:NP7) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Kayaku Co stock appears to be overvalued.
The current stock price of €11.00 is trading 21.1% above its estimated GF Value™ of €9.08.
GuruFocus considers Nippon Kayaku Co to be Modestly Overvalued.
Key valuation signals for FRA:NP7:
ROA %: 5.51% (12% above median its 10-year median of 4.94)
GF Value™: €9.08 vs. price of €11.00 (21.1% above fair value)
Industry Position: 90% above the Chemicals median (#418 of 1618)
No single metric tells the full story. See the FRA:NP7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Kayaku Co Ltd manufactures and sells a variety of chemicals. The firm organizes itself into four segments based on product type. The functional chemicals segment, which generates more revenue than any other segment, sells epoxy resins used as flame retardants in electronics, colorants and dyes used in inkjet printers and the manufacture of textiles. The pharmaceuticals segment sells anti-cancer drugs, biological drugs, cardiovascular agents, vitamin compounds, and anti-inflammatory agents. The safety systems segment sells airbag inflators and micro gas generators for seatbelt pretensioners to the automotive industry, both of which are used to protect passengers during an accident. The agrochemicals segment sells insecticides and herbicides. The majority of revenue comes from Asia.
84GF Score
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