LYMEX:4689N 57 ROA % is 0.37% as of Mar. 2026, which is 82% below its 10-year median of 2.09. GuruFocus rates MEX:4689N with a GF Score™ of 57/100 and a GF Value™ of MXN53.98 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,129 Retail - Cyclical companies, LY ranks worse than 57.22% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LY's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN4,722 Mil.
LY's average Total Assets over the quarter that ended in Mar. 2026 was MXN1,276,981 Mil. Therefore, LY's annualized ROA % for the quarter that ended in Mar. 2026 was 0.37%.
The historical rank and industry rank for LY's ROA % or its related term are showing as below:
MEX:4689N'
s ROA % Range Over the Past 10 Years
Min: 1.12 Med: 2.09 Max: 9.5
Current: 1.86
During the past 13 years, LY's highest ROA % was 9.50%. The lowest was 1.12%. And the median was 2.09%.
MEX:4689N's ROA % is ranked worse than 57.22% of 1129
companies
in the Retail - Cyclical industry
Industry Median: 2.73
vs MEX:4689N: 1.86
LY (MEX:4689N) 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.
LY ROA % Related Terms
LY ROA % Historical Data
* Premium members only.
The historical data trend for LY'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 Internet Retail subindustry, LY'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.
LY ROA % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, LY's ROA % distribution charts can be found below:
* The bar in red indicates where LY'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.
LY (MEX:4689N) has a ROA % of 0.37% 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 LY and its competitors. This is 82% below median its historical median of 2.09. Over the past decade, LY's ROA % has ranged from 1.12 to 9.50. According to the industry distribution chart, LY ranks #646 out of 1129 companies in the Retail - Cyclical industry, placing it in the top 57.2%.
Is LY's ROA % too high?
LY's current ROA % of 0.37% is 82% below median its 10-year median of 2.09. Over the past 10 years, this metric has ranged from a low of 1.12 to a high of 9.50. The Retail - Cyclical industry median ROA % is 2.73. LY's value of 0.37% is 86.4% below this industry median. Based on the distribution chart, LY ranks #646 out of 1129 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, LY has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LY's ROA % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, LY ranks #646 out of 1129 companies for ROA %. This places LY in the lower half of its industry. The industry median ROA % is 2.73. LY's value of 0.37% is 86.4% below this benchmark. Historically, LY's own ROA % has ranged from 1.12 to 9.50 over the past decade. While the company's 10-year median is 2.09 vs. the industry median of 2.73, LY 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 Retail - Cyclical company?
The median ROA % among Retail - Cyclical companies is 2.73, based on 1,129 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. LY's current ROA % of 0.37% is 86.4% 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 LY and its competitors. For the Retail - Cyclical industry, the median ROA % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LY's current ROA % is 0.37%, which is 82% below median its own 10-year median of 2.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LY stock overvalued right now?
Based on GuruFocus' analysis, LY (MEX:4689N) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN53.98, compared to a current price of MXN45.59 — trading 15.5% below its estimated fair value. The current ROA % is 0.37%, which is 82% below median its 10-year median of 2.09 and 86.4% below the Retail - Cyclical industry median of 2.73. LY's overall GF Score™ is 57/100 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 LY (MEX:4689N), the current ROA % is 0.37% 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 LY (MEX:4689N) Overvalued in 2026?
Based on GuruFocus' analysis, LY stock appears to be undervalued.
The current stock price of MXN45.59 is trading 15.5% below its estimated GF Value™ of MXN53.98.
GuruFocus considers LY to be Modestly Undervalued.
Key valuation signals for MEX:4689N:
ROA %: 0.37% (82% below median its 10-year median of 2.09)
GF Value™: MXN53.98 vs. price of MXN45.59 (15.5% below fair value)
Industry Position: 86.4% below the Retail - Cyclical median (#646 of 1129)
No single metric tells the full story. See the MEX:4689N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LY is a leading Japanese internet services conglomerate. Its main services are Yahoo Japan, the oldest portal site in Japan that offers a wide variety of services, such as news, e-commerce, financial information, and Line, a national messenger application. In 2019, the company acquired Zozo, a leading online apparel retailer, to grow its e-commerce business. In 2022, LY consolidated with its wholly owned subsidiary PayPay, the most popular QR code payment service in Japan.
57GF Score
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