Tokai Rika CoNGO:6995 87 ROA % is 2.21% as of Mar. 2026, which is 49% below its 10-year median of 4.33. GuruFocus rates NGO:6995 with a GF Score™ of 87/100 and a GF Value™ of 円1,705.09. The stock has 2 warning signs investors should review. Among 1,335 Vehicles & Parts companies, Tokai Rika Co ranks better than 70.86% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tokai Rika Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円11,868 Mil.
Tokai Rika Co's average Total Assets over the quarter that ended in Mar. 2026 was 円537,667 Mil. Therefore, Tokai Rika Co's annualized ROA % for the quarter that ended in Mar. 2026 was 2.21%.
The historical rank and industry rank for Tokai Rika Co's ROA % or its related term are showing as below:
NGO:6995'
s ROA % Range Over the Past 10 Years
Min: -1.18 Med: 4.33 Max: 5.9
Current: 5.61
During the past 13 years, Tokai Rika Co's highest ROA % was 5.90%. The lowest was -1.18%. And the median was 4.33%.
NGO:6995's ROA % is ranked better than 70.86% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs NGO:6995: 5.61
Tokai Rika Co (NGO:6995) 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.
Tokai Rika Co ROA % Related Terms
Tokai Rika Co ROA % Historical Data
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The historical data trend for Tokai Rika 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 Auto Parts subindustry, Tokai Rika 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.
Tokai Rika Co ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tokai Rika Co's ROA % distribution charts can be found below:
* The bar in red indicates where Tokai Rika 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 four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Tokai Rika Co (NGO:6995) has a ROA % of 2.21% 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 Tokai Rika Co and its competitors. This is 49% below median its historical median of 4.33. According to the industry distribution chart, Tokai Rika Co ranks #389 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 29.1%.
Is Tokai Rika Co's ROA % too high?
Tokai Rika Co's current ROA % of 2.21% is 49% below median its 10-year median of 4.33. The Vehicles & Parts industry median ROA % is 2.95. Tokai Rika Co's value of 2.21% is 25.1% below this industry median. Based on the distribution chart, Tokai Rika Co ranks #389 out of 1335 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Tokai Rika Co has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Tokai Rika Co's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Tokai Rika Co ranks #389 out of 1335 companies for ROA %. This puts Tokai Rika Co in the upper half of its industry. The industry median ROA % is 2.95. Tokai Rika Co's value of 2.21% is 25.1% below this benchmark. While the company's 10-year median is 4.33 vs. the industry median of 2.95, Tokai Rika Co 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 Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,335 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. Tokai Rika Co's current ROA % of 2.21% is 25.1% 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 Tokai Rika Co and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Rika Co's current ROA % is 2.21%, which is 49% below median its own 10-year median of 4.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Rika Co stock overvalued right now?
Tokai Rika Co (NGO:6995) has a current ROA % of 2.21%. The stock's GF Value™ is 円1,705.09, compared to a current price of 円1,950.00 — trading 14.4% above its estimated fair value. The current ROA % is 2.21%, which is 49% below median its 10-year median of 4.33 and 25.1% below the Vehicles & Parts industry median of 2.95. Tokai Rika Co's overall GF Score™ is 87/100 with 2 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 Tokai Rika Co (NGO:6995), the current ROA % is 2.21% 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 Tokai Rika Co (NGO:6995) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Rika Co stock appears to be overvalued.
The current stock price of 円1,950.00 is trading 14.4% above its estimated GF Value™ of 円1,705.09.
Key valuation signals for NGO:6995:
ROA %: 2.21% (49% below median its 10-year median of 4.33)
GF Value™: 円1,705.09 vs. price of 円1,950.00 (14.4% above fair value)
Industry Position: 25.1% below the Vehicles & Parts median (#389 of 1335)
No single metric tells the full story. See the NGO:6995 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Rika Co Ltd is a Japan-based company manufactures automobile control systems and components that accurately relay human commands, as well as security devices that prevent unauthorized entry and safety systems that protect human lives. The company's products include automotive switches, locks, and keys, seatbelts, shift levers, electronic parts, steering wheels, connectors, mirrors, plastic wheel covers, ornaments, amongst others.
87GF Score
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