Archroma PakistanKAR:ARPL 64 ROA % is 7.19% as of Mar. 2026, which is 52% below its 10-year median of 15.10. GuruFocus rates KAR:ARPL with a GF Score™ of 64/100 and a GF Value™ of ₨457.27 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,619 Chemicals companies, Archroma Pakistan ranks better than 80.42% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Archroma Pakistan's annualizedNet Income for the quarter that ended in Mar. 2026 was ₨1,344 Mil.
Archroma Pakistan's average Total Assets over the quarter that ended in Mar. 2026 was ₨18,690 Mil. Therefore, Archroma Pakistan's annualized ROA % for the quarter that ended in Mar. 2026 was 7.19%.
The historical rank and industry rank for Archroma Pakistan's ROA % or its related term are showing as below:
KAR:ARPL'
s ROA % Range Over the Past 10 Years
Min: -3.15 Med: 15.1 Max: 21.42
Current: 7.58
During the past 13 years, Archroma Pakistan's highest ROA % was 21.42%. The lowest was -3.15%. And the median was 15.10%.
KAR:ARPL's ROA % is ranked better than 80.42% of 1619
companies
in the Chemicals industry
Industry Median: 2.9
vs KAR:ARPL: 7.58
Archroma Pakistan (KAR:ARPL) 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.
Archroma Pakistan ROA % Related Terms
Archroma Pakistan ROA % Historical Data
* Premium members only.
The historical data trend for Archroma Pakistan'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, Archroma Pakistan'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.
Archroma Pakistan ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Archroma Pakistan's ROA % distribution charts can be found below:
* The bar in red indicates where Archroma Pakistan'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.
Archroma Pakistan (KAR:ARPL) has a ROA % of 7.19% 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 Archroma Pakistan and its competitors. This is 52% below median its historical median of 15.10. According to the industry distribution chart, Archroma Pakistan ranks #317 out of 1619 companies in the Chemicals industry, placing it in the top 19.6%.
Is Archroma Pakistan's ROA % too high?
Archroma Pakistan's current ROA % of 7.19% is 52% below median its 10-year median of 15.10. The Chemicals industry median ROA % is 2.90. Archroma Pakistan's value of 7.19% is 147.9% above this industry median. Based on the distribution chart, Archroma Pakistan ranks #317 out of 1619 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Archroma Pakistan has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Archroma Pakistan's ROA % compare to DOW?
According to the Chemicals industry distribution chart, Archroma Pakistan ranks #317 out of 1619 companies for ROA %. This places Archroma Pakistan in the top 20% of its industry — outperforming the majority of peers. The industry median ROA % is 2.90. Archroma Pakistan's value of 7.19% is 147.9% above this benchmark. While the company's 10-year median is 15.10 vs. the industry median of 2.90, Archroma Pakistan 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 1,619 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. Archroma Pakistan's current ROA % of 7.19% is 147.9% 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 Archroma Pakistan 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. Archroma Pakistan's current ROA % is 7.19%, which is 52% below median its own 10-year median of 15.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Archroma Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Archroma Pakistan (KAR:ARPL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨457.27, compared to a current price of ₨399.98 — trading 12.5% below its estimated fair value. The current ROA % is 7.19%, which is 52% below median its 10-year median of 15.10 and 147.9% above the Chemicals industry median of 2.90. Archroma Pakistan's overall GF Score™ is 64/100 with 6 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 Archroma Pakistan (KAR:ARPL), the current ROA % is 7.19% 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 Archroma Pakistan (KAR:ARPL) Overvalued in 2026?
Based on GuruFocus' analysis, Archroma Pakistan stock appears to be undervalued.
The current stock price of ₨399.98 is trading 12.5% below its estimated GF Value™ of ₨457.27.
GuruFocus considers Archroma Pakistan to be Modestly Undervalued.
Key valuation signals for KAR:ARPL:
ROA %: 7.19% (52% below median its 10-year median of 15.10)
GF Value™: ₨457.27 vs. price of ₨399.98 (12.5% below fair value)
Industry Position: 147.9% above the Chemicals median (#317 of 1619)
No single metric tells the full story. See the KAR:ARPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Archroma Pakistan Ltd is a Pakistan-based color and specialty chemicals company. The company is engaged in the manufacturing and sale of chemicals, dyes, and chemicals for textiles, paper, packaging, coatings, and construction. The company provides services for managing whiteness, coloration, and special coatings across all types of paper. The company's key revenue comes from domestic sales.
64GF Score
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