Aichi ElectricNGO:6623 -1.30%66 ROA % is 6.39% as of Mar. 2026, which is 35% above its 10-year median of 4.73. GuruFocus rates NGO:6623 with a GF Score™ of 66/100 and a GF Value™ of 円4,869.52 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,074 Industrial Products companies, Aichi Electric ranks better than 70.56% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Aichi Electric's annualizedNet Income for the quarter that ended in Mar. 2026 was 円9,204 Mil.
Aichi Electric's average Total Assets over the quarter that ended in Mar. 2026 was 円143,986 Mil. Therefore, Aichi Electric's annualized ROA % for the quarter that ended in Mar. 2026 was 6.39%.
The historical rank and industry rank for Aichi Electric's ROA % or its related term are showing as below:
NGO:6623'
s ROA % Range Over the Past 10 Years
Min: 3.06 Med: 4.73 Max: 6.17
Current: 5.95
During the past 13 years, Aichi Electric's highest ROA % was 6.17%. The lowest was 3.06%. And the median was 4.73%.
NGO:6623's ROA % is ranked better than 70.56% of 3074
companies
in the Industrial Products industry
Industry Median: 3.045
vs NGO:6623: 5.95
Aichi Electric (NGO:6623) 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.
Aichi Electric ROA % Related Terms
Aichi Electric ROA % Historical Data
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The historical data trend for Aichi Electric'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 Electrical Equipment & Parts subindustry, Aichi Electric'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.
Aichi Electric ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Aichi Electric's ROA % distribution charts can be found below:
* The bar in red indicates where Aichi Electric'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.
Aichi Electric (NGO:6623) has a ROA % of 6.39% 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 Aichi Electric and its competitors. This is 35% above median its historical median of 4.73. Over the past decade, Aichi Electric's ROA % has ranged from 3.06 to 6.17. According to the industry distribution chart, Aichi Electric ranks #905 out of 3074 companies in the Industrial Products industry, placing it in the top 29.4%.
Is Aichi Electric's ROA % too high?
Aichi Electric's current ROA % of 6.39% is 35% above median its 10-year median of 4.73. Over the past 10 years, this metric has ranged from a low of 3.06 to a high of 6.17. The Industrial Products industry median ROA % is 3.05. Aichi Electric's value of 6.39% is 109.9% above this industry median. Based on the distribution chart, Aichi Electric ranks #905 out of 3074 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Aichi Electric has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aichi Electric's ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Aichi Electric ranks #905 out of 3074 companies for ROA %. This puts Aichi Electric in the upper half of its industry. The industry median ROA % is 3.05. Aichi Electric's value of 6.39% is 109.9% above this benchmark. Historically, Aichi Electric's own ROA % has ranged from 3.06 to 6.17 over the past decade. While the company's 10-year median is 4.73 vs. the industry median of 3.05, Aichi Electric 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 3.05, based on 3,074 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. Aichi Electric's current ROA % of 6.39% is 109.9% 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 Aichi Electric and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aichi Electric's current ROA % is 6.39%, which is 35% above median its own 10-year median of 4.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aichi Electric stock overvalued right now?
Based on GuruFocus' analysis, Aichi Electric (NGO:6623) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,869.52, compared to a current price of 円9,090.00 — trading 86.7% above its estimated fair value. The current ROA % is 6.39%, which is 35% above median its 10-year median of 4.73 and 109.9% above the Industrial Products industry median of 3.05. Aichi Electric's overall GF Score™ is 66/100 with 5 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 Aichi Electric (NGO:6623), the current ROA % is 6.39% 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 Aichi Electric (NGO:6623) Overvalued in 2026?
Based on GuruFocus' analysis, Aichi Electric stock appears to be overvalued.
The current stock price of 円9,090.00 is trading 86.7% above its estimated GF Value™ of 円4,869.52.
GuruFocus considers Aichi Electric to be Significantly Overvalued.
Key valuation signals for NGO:6623:
ROA %: 6.39% (35% above median its 10-year median of 4.73)
GF Value™: 円4,869.52 vs. price of 円9,090.00 (86.7% above fair value)
Industry Position: 109.9% above the Industrial Products median (#905 of 3074)
No single metric tells the full story. See the NGO:6623 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aichi Electric Co., Ltd is engaged in providing electric power products in Japan. The company's products offerings are A transformer, Motor, Applied equipment, Plant equipment, Power conversion equipment, and others. Its segments include: Power Equipment; and Rotating Machines.
66GF Score
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