ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Engro Polymer & Chemicals's annualizedNet Income for the quarter that ended in Mar. 2026 was ₨1,483 Mil.
Engro Polymer & Chemicals's average Total Assets over the quarter that ended in Mar. 2026 was ₨117,304 Mil. Therefore, Engro Polymer & Chemicals's annualized ROA % for the quarter that ended in Mar. 2026 was 1.26%.
The historical rank and industry rank for Engro Polymer & Chemicals's ROA % or its related term are showing as below:
KAR:EPCL'
s ROA % Range Over the Past 10 Years
Min: -3.57 Med: 8.74 Max: 20.48
Current: -2.5
During the past 13 years, Engro Polymer & Chemicals's highest ROA % was 20.48%. The lowest was -3.57%. And the median was 8.74%.
KAR:EPCL's ROA % is ranked worse than 80.48% of 1619
companies
in the Chemicals industry
Industry Median: 2.9
vs KAR:EPCL: -2.50
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 Chemicals subindustry, Engro Polymer & Chemicals'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.
Engro Polymer & Chemicals ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Engro Polymer & Chemicals's ROA % distribution charts can be found below:
* The bar in red indicates where Engro Polymer & Chemicals'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.
Engro Polymer & Chemicals (KAR:EPCL) has a ROA % of 1.26% 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 Engro Polymer & Chemicals and its competitors. This is 86% below median its historical median of 8.74. According to the industry distribution chart, Engro Polymer & Chemicals ranks #1303 out of 1619 companies in the Chemicals industry, placing it in the top 80.5%.
Is Engro Polymer & Chemicals' ROA % too high?
Engro Polymer & Chemicals' current ROA % of 1.26% is 86% below median its 10-year median of 8.74. The Chemicals industry median ROA % is 2.90. Engro Polymer & Chemicals' value of 1.26% is 56.6% below this industry median. Based on the distribution chart, Engro Polymer & Chemicals ranks #1303 out of 1619 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Engro Polymer & Chemicals has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Engro Polymer & Chemicals' ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Engro Polymer & Chemicals ranks #1303 out of 1619 companies for ROA %. This places Engro Polymer & Chemicals in the lower half of its industry. The industry median ROA % is 2.90. Engro Polymer & Chemicals' value of 1.26% is 56.6% below this benchmark. While the company's 10-year median is 8.74 vs. the industry median of 2.90, Engro Polymer & Chemicals has consistently been below 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. Engro Polymer & Chemicals's current ROA % of 1.26% is 56.6% below 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 Engro Polymer & Chemicals 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. Engro Polymer & Chemicals's current ROA % is 1.26%, which is 86% below median its own 10-year median of 8.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Engro Polymer & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Engro Polymer & Chemicals (KAR:EPCL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨46.26, compared to a current price of ₨34.32 — trading 25.8% below its estimated fair value. The current ROA % is 1.26%, which is 86% below median its 10-year median of 8.74 and 56.6% below the Chemicals industry median of 2.90. Engro Polymer & Chemicals' overall GF Score™ is 52/100 with 12 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 Engro Polymer & Chemicals (KAR:EPCL), the current ROA % is 1.26% 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 Engro Polymer & Chemicals (KAR:EPCL) Overvalued in 2026?
Based on GuruFocus' analysis, Engro Polymer & Chemicals stock appears to be undervalued.
The current stock price of ₨34.32 is trading 25.8% below its estimated GF Value™ of ₨46.26.
GuruFocus considers Engro Polymer & Chemicals to be Modestly Undervalued.
Key valuation signals for KAR:EPCL:
ROA %: 1.26% (86% below median its 10-year median of 8.74)
GF Value™: ₨46.26 vs. price of ₨34.32 (25.8% below fair value)
Industry Position: 56.6% below the Chemicals median (#1303 of 1619)
No single metric tells the full story. See the KAR:EPCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Engro Polymer & Chemicals Ltd is mainly engaged in the production and distribution of chlor-vinyl products, including Polyvinyl Chloride (PVC), caustic soda, hydrogen peroxide, and other industrial chemicals such as hydrochloric acid and sodium hypochlorite. The Company operates through multiple segments, with the Poly Vinyl Chloride (PVC) segment generating the highest revenue by supplying products to industries such as pipes, footwear, and packaging across Pakistan and exporting mainly to Asia. Its Caustic Soda and Allied Chemicals segment serves textile and soap industries, while the Hydrogen Peroxide segment mainly caters to the textile sector, and the Power Supplies segment supplies surplus power generated from its power plants.
52GF Score
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