Taiyo Kagaku CoNGO:2902 +0.58%76 ROA % is 8.39% as of Mar. 2026, which is 47% above its 10-year median of 5.69. GuruFocus rates NGO:2902 with a GF Score™ of 76/100 and a GF Value™ of 円1,866.26 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,608 Chemicals companies, Taiyo Kagaku Co ranks better than 82.21% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Taiyo Kagaku Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円5,648 Mil.
Taiyo Kagaku Co's average Total Assets over the quarter that ended in Mar. 2026 was 円67,344 Mil. Therefore, Taiyo Kagaku Co's annualized ROA % for the quarter that ended in Mar. 2026 was 8.39%.
The historical rank and industry rank for Taiyo Kagaku Co's ROA % or its related term are showing as below:
NGO:2902'
s ROA % Range Over the Past 10 Years
Min: 4.05 Med: 5.69 Max: 7.95
Current: 7.95
During the past 13 years, Taiyo Kagaku Co's highest ROA % was 7.95%. The lowest was 4.05%. And the median was 5.69%.
NGO:2902's ROA % is ranked better than 82.21% of 1608
companies
in the Chemicals industry
Industry Median: 2.9
vs NGO:2902: 7.95
Taiyo Kagaku Co (NGO:2902) 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 two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
Taiyo Kagaku Co ROA % Related Terms
Taiyo Kagaku Co ROA % Historical Data
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The historical data trend for Taiyo Kagaku Co'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 Specialty Chemicals subindustry, Taiyo Kagaku Co'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.
Taiyo Kagaku Co ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Taiyo Kagaku Co's ROA % distribution charts can be found below:
* The bar in red indicates where Taiyo Kagaku Co'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 two times the semi-annual (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Taiyo Kagaku Co (NGO:2902) has a ROA % of 8.39% 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 Taiyo Kagaku Co and its competitors. This is 47% above median its historical median of 5.69. Over the past decade, Taiyo Kagaku Co's ROA % has ranged from 4.05 to 7.95. According to the industry distribution chart, Taiyo Kagaku Co ranks #286 out of 1608 companies in the Chemicals industry, placing it in the top 17.8%.
Is Taiyo Kagaku Co's ROA % too high?
Taiyo Kagaku Co's current ROA % of 8.39% is 47% above median its 10-year median of 5.69. Over the past 10 years, this metric has ranged from a low of 4.05 to a high of 7.95. The Chemicals industry median ROA % is 2.90. Taiyo Kagaku Co's value of 8.39% is 189.3% above this industry median. Based on the distribution chart, Taiyo Kagaku Co ranks #286 out of 1608 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Taiyo Kagaku Co has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiyo Kagaku Co's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Taiyo Kagaku Co ranks #286 out of 1608 companies for ROA %. This places Taiyo Kagaku Co in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 2.90. Taiyo Kagaku Co's value of 8.39% is 189.3% above this benchmark. Historically, Taiyo Kagaku Co's own ROA % has ranged from 4.05 to 7.95 over the past decade. While the company's 10-year median is 5.69 vs. the industry median of 2.90, Taiyo Kagaku Co 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 1,608 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. Taiyo Kagaku Co's current ROA % of 8.39% is 189.3% 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 Taiyo Kagaku Co 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. Taiyo Kagaku Co's current ROA % is 8.39%, which is 47% above median its own 10-year median of 5.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiyo Kagaku Co stock overvalued right now?
Based on GuruFocus' analysis, Taiyo Kagaku Co (NGO:2902) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,866.26, compared to a current price of 円2,796.00 — trading 49.8% above its estimated fair value. The current ROA % is 8.39%, which is 47% above median its 10-year median of 5.69 and 189.3% above the Chemicals industry median of 2.90. Taiyo Kagaku Co's overall GF Score™ is 76/100 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 Taiyo Kagaku Co (NGO:2902), the current ROA % is 8.39% 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 Taiyo Kagaku Co (NGO:2902) Overvalued in 2026?
Based on GuruFocus' analysis, Taiyo Kagaku Co stock appears to be overvalued.
The current stock price of 円2,796.00 is trading 49.8% above its estimated GF Value™ of 円1,866.26.
GuruFocus considers Taiyo Kagaku Co to be Significantly Overvalued.
Key valuation signals for NGO:2902:
ROA %: 8.39% (47% above median its 10-year median of 5.69)
GF Value™: 円1,866.26 vs. price of 円2,796.00 (49.8% above fair value)
Industry Position: 189.3% above the Chemicals median (#286 of 1608)
No single metric tells the full story. See the NGO:2902 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiyo Kagaku Co Ltd is based in Japan. The company has three reportable segments: the Nutrition Business, the Interface Solutions Business, and the Natural Ingredients Business. The Nutrition Business manufactures and sells functional food ingredients such as catechin (green tea extract), theanine (a functional amino acid), and water-soluble dietary fiber, as well as mineral and vitamin preparations. The Interface Solutions Business manufactures and sells quality improvers such as emulsifiers. The Natural Ingredients Business manufactures and sells food ingredients such as egg products, protein ingredients, ingredients for instant foods, and processed agricultural products, as well as quality improvers and stabilizers.
76GF Score
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