NextgenNGO:3842 68 ROA % is 7.27% as of Mar. 2026, which is 127% above its 10-year median of 3.20. GuruFocus rates NGO:3842 with a GF Score™ of 68/100 and a GF Value™ of 円1,136.01. The stock has 1 warning sign investors should review. Among 370 Telecommunication Services companies, Nextgen ranks better than 81.62% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nextgen's annualizedNet Income for the quarter that ended in Mar. 2026 was 円272 Mil.
Nextgen's average Total Assets over the quarter that ended in Mar. 2026 was 円3,744 Mil. Therefore, Nextgen's annualized ROA % for the quarter that ended in Mar. 2026 was 7.27%.
The historical rank and industry rank for Nextgen's ROA % or its related term are showing as below:
NGO:3842'
s ROA % Range Over the Past 10 Years
Min: -14.09 Med: 3.2 Max: 8.09
Current: 7.95
During the past 13 years, Nextgen's highest ROA % was 8.09%. The lowest was -14.09%. And the median was 3.20%.
NGO:3842's ROA % is ranked better than 81.62% of 370
companies
in the Telecommunication Services industry
Industry Median: 2.69
vs NGO:3842: 7.95
Nextgen (NGO:3842) 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.
Nextgen ROA % Related Terms
Nextgen ROA % Historical Data
* Premium members only.
The historical data trend for Nextgen'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 Telecom Services subindustry, Nextgen'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.
Nextgen ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Nextgen's ROA % distribution charts can be found below:
* The bar in red indicates where Nextgen'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.
Nextgen (NGO:3842) has a ROA % of 7.27% 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 Nextgen and its competitors. This is 127% above median its historical median of 3.20. According to the industry distribution chart, Nextgen ranks #68 out of 370 companies in the Telecommunication Services industry, placing it in the top 18.4%.
Is Nextgen's ROA % too high?
Nextgen's current ROA % of 7.27% is 127% above median its 10-year median of 3.20. The Telecommunication Services industry median ROA % is 2.69. Nextgen's value of 7.27% is 170.3% above this industry median. Based on the distribution chart, Nextgen ranks #68 out of 370 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Nextgen has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Nextgen's ROA % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Nextgen ranks #68 out of 370 companies for ROA %. This places Nextgen in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 2.69. Nextgen's value of 7.27% is 170.3% above this benchmark. While the company's 10-year median is 3.20 vs. the industry median of 2.69, Nextgen 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 Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.69, based on 370 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. Nextgen's current ROA % of 7.27% is 170.3% 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 Nextgen and its competitors. For the Telecommunication Services industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nextgen's current ROA % is 7.27%, which is 127% above median its own 10-year median of 3.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nextgen stock overvalued right now?
Nextgen (NGO:3842) has a current ROA % of 7.27%. The stock's GF Value™ is 円1,136.01, compared to a current price of 円1,034.00 — trading 9% below its estimated fair value. The current ROA % is 7.27%, which is 127% above median its 10-year median of 3.20 and 170.3% above the Telecommunication Services industry median of 2.69. Nextgen's overall GF Score™ is 68/100 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 Nextgen (NGO:3842), the current ROA % is 7.27% 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 Nextgen (NGO:3842) Overvalued in 2026?
Based on GuruFocus' analysis, Nextgen stock appears to be undervalued.
The current stock price of 円1,034.00 is trading 9% below its estimated GF Value™ of 円1,136.01.
Key valuation signals for NGO:3842:
ROA %: 7.27% (127% above median its 10-year median of 3.20)
GF Value™: 円1,136.01 vs. price of 円1,034.00 (9% below fair value)
Industry Position: 170.3% above the Telecommunication Services median (#68 of 370)
No single metric tells the full story. See the NGO:3842 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nextgen Inc is engaged in providing software & hardware solutions on Internet protocol telephone system for telecommunication carriers. It has three business segments: Communication system solution; Security solution; Cloud and smartphone solutions. Communication system solution provides carrier-grade SIP/VoIP systems to telecommunication carriers; security solution provides protection consultations.
68GF Score
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