Kawasaki Heavy IndustriesKWHIY -1.52%82 ROA % is 5.07% as of Mar. 2026, which is 227% above its 10-year median of 1.55. GuruFocus rates KWHIY with a GF Score™ of 82/100 and a GF Value™ of $4.11 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 3,081 Industrial Products companies, Kawasaki Heavy Industries ranks better than 52.94% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kawasaki Heavy Industries's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,066 Mil.
Kawasaki Heavy Industries's average Total Assets over the quarter that ended in Mar. 2026 was $21,016 Mil. Therefore, Kawasaki Heavy Industries's annualized ROA % for the quarter that ended in Mar. 2026 was 5.07%.
The historical rank and industry rank for Kawasaki Heavy Industries's ROA % or its related term are showing as below:
KWHIY'
s ROA % Range Over the Past 10 Years
Min: -0.99 Med: 1.55 Max: 3.45
Current: 3.45
During the past 13 years, Kawasaki Heavy Industries's highest ROA % was 3.45%. The lowest was -0.99%. And the median was 1.55%.
KWHIY's ROA % is ranked better than 52.94% of 3081
companies
in the Industrial Products industry
Industry Median: 3.06
vs KWHIY: 3.45
Kawasaki Heavy Industries (OTCPK:KWHIY) 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, Kawasaki Heavy Industries'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.
Kawasaki Heavy Industries ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kawasaki Heavy Industries's ROA % distribution charts can be found below:
* The bar in red indicates where Kawasaki Heavy Industries'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.
Kawasaki Heavy Industries (KWHIY) has a ROA % of 5.07% 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 Kawasaki Heavy Industries and its competitors. This is 227% above median its historical median of 1.55. According to the industry distribution chart, Kawasaki Heavy Industries ranks #1450 out of 3081 companies in the Industrial Products industry, placing it in the top 47.1%.
Is Kawasaki Heavy Industries' ROA % too high?
Kawasaki Heavy Industries' current ROA % of 5.07% is 227% above median its 10-year median of 1.55. The Industrial Products industry median ROA % is 3.06. Kawasaki Heavy Industries' value of 5.07% is 65.7% above this industry median. Based on the distribution chart, Kawasaki Heavy Industries ranks #1450 out of 3081 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Kawasaki Heavy Industries has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawasaki Heavy Industries' ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Kawasaki Heavy Industries ranks #1450 out of 3081 companies for ROA %. This puts Kawasaki Heavy Industries in the upper half of its industry. The industry median ROA % is 3.06. Kawasaki Heavy Industries' value of 5.07% is 65.7% above this benchmark. While the company's 10-year median is 1.55 vs. the industry median of 3.06, Kawasaki Heavy Industries 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 3.06, based on 3,081 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. Kawasaki Heavy Industries's current ROA % of 5.07% is 65.7% 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 Kawasaki Heavy Industries and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawasaki Heavy Industries's current ROA % is 5.07%, which is 227% above median its own 10-year median of 1.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawasaki Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Kawasaki Heavy Industries (KWHIY) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.11, compared to a current price of $7.11 — trading 73% above its estimated fair value. The current ROA % is 5.07%, which is 227% above median its 10-year median of 1.55 and 65.7% above the Industrial Products industry median of 3.06. Kawasaki Heavy Industries' overall GF Score™ is 82/100 with 3 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 Kawasaki Heavy Industries (KWHIY), the current ROA % is 5.07% 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 Kawasaki Heavy Industries (KWHIY) Overvalued in 2026?
Based on GuruFocus' analysis, Kawasaki Heavy Industries stock appears to be overvalued.
The current stock price of $7.11 is trading 73% above its estimated GF Value™ of $4.11.
GuruFocus considers Kawasaki Heavy Industries to be Significantly Overvalued.
Key valuation signals for KWHIY:
ROA %: 5.07% (227% above median its 10-year median of 1.55)
GF Value™: $4.11 vs. price of $7.11 (73% above fair value)
Industry Position: 65.7% above the Industrial Products median (#1450 of 3081)
No single metric tells the full story. See the KWHIY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawasaki Heavy Industries Ltd is a Japan-based conglomerate with operations in aerospace, marine, and vehicles. The company operates through six segments. The Aerospace Systems segment manufactures and sells aircraft, engines, and space-related equipment. The Energy Solutions & Marine segment provides energy equipment, hydrogen systems, marine propulsion, plants, ships, and crushers. The Power Sports & Engine segment produces motorcycles, off-road vehicles, personal watercraft, and general-purpose engines. The Precision Machinery and Robots segment offers hydraulic equipment and industrial robots. The Vehicle segment manufactures railway vehicles and snow removal machinery. The Other segment covers commerce mediation, sales, orders, and welfare facility management.
82GF Score
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