ITCLUX:ITC 81 ROA % is 22.98% as of Mar. 2026, which is 13% above its 10-year median of 20.35. GuruFocus rates LUX:ITC with a GF Score™ of 81/100 and a GF Value™ of $8.73. The stock has 1 warning sign investors should review. Among 49 Tobacco Products companies, ITC ranks better than 81.63% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. ITC's annualizedNet Income for the quarter that ended in Mar. 2026 was $2,322 Mil.
ITC's average Total Assets over the quarter that ended in Mar. 2026 was $10,105 Mil. Therefore, ITC's annualized ROA % for the quarter that ended in Mar. 2026 was 22.98%.
The historical rank and industry rank for ITC's ROA % or its related term are showing as below:
LUX:ITC'
s ROA % Range Over the Past 10 Years
Min: 17.41 Med: 20.35 Max: 38.63
Current: 22.76
During the past 13 years, ITC's highest ROA % was 38.63%. The lowest was 17.41%. And the median was 20.35%.
LUX:ITC's ROA % is ranked better than 81.63% of 49
companies
in the Tobacco Products industry
Industry Median: 6.68
vs LUX:ITC: 22.76
ITC (LUX:ITC) 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.
ITC ROA % Related Terms
ITC ROA % Historical Data
* Premium members only.
The historical data trend for ITC'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 Tobacco subindustry, ITC'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.
ITC ROA % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, ITC's ROA % distribution charts can be found below:
* The bar in red indicates where ITC'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.
ITC (LUX:ITC) has a ROA % of 22.98% 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 ITC and its competitors. This is 13% above median its historical median of 20.35. Over the past decade, ITC's ROA % has ranged from 17.41 to 38.63. According to the industry distribution chart, ITC ranks #9 out of 49 companies in the Tobacco Products industry, placing it in the top 18.4%.
Is ITC's ROA % too high?
ITC's current ROA % of 22.98% is 13% above median its 10-year median of 20.35. Over the past 10 years, this metric has ranged from a low of 17.41 to a high of 38.63. The Tobacco Products industry median ROA % is 6.68. ITC's value of 22.98% is 244% above this industry median. Based on the distribution chart, ITC ranks #9 out of 49 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, ITC has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does ITC's ROA % compare to PM and MO?
According to the Tobacco Products industry distribution chart, ITC ranks #9 out of 49 companies for ROA %. This places ITC in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 6.68. ITC's value of 22.98% is 244% above this benchmark. Historically, ITC's own ROA % has ranged from 17.41 to 38.63 over the past decade. While the company's 10-year median is 20.35 vs. the industry median of 6.68, ITC 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 Tobacco Products company?
The median ROA % among Tobacco Products companies is 6.68, based on 49 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. ITC's current ROA % of 22.98% is 244% 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 ITC and its competitors. For the Tobacco Products industry, the median ROA % is 6.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITC's current ROA % is 22.98%, which is 13% above median its own 10-year median of 20.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITC stock overvalued right now?
ITC (LUX:ITC) has a current ROA % of 22.98%. The stock's GF Value™ is $8.73, compared to a current price of $5.50 — trading 37% below its estimated fair value. The current ROA % is 22.98%, which is 13% above median its 10-year median of 20.35 and 244% above the Tobacco Products industry median of 6.68. ITC's overall GF Score™ is 81/100 with 1 warning sign 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 ITC (LUX:ITC), the current ROA % is 22.98% 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 ITC (LUX:ITC) Overvalued in 2026?
Based on GuruFocus' analysis, ITC stock appears to be undervalued.
The current stock price of $5.50 is trading 37% below its estimated GF Value™ of $8.73.
Key valuation signals for LUX:ITC:
ROA %: 22.98% (13% above median its 10-year median of 20.35)
GF Value™: $8.73 vs. price of $5.50 (37% below fair value)
Industry Position: 244% above the Tobacco Products median (#9 of 49)
No single metric tells the full story. See the LUX:ITC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITC Ltd is an Indian conglomerate that predominantly operates in the consumer goods space, particularly cigarettes. The company operates in three main business segments: Fast Moving Consumer Goods; Paperboards, Paper, and Packaging; and Agri-Business. The company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.
81GF Score
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