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Arabian PetroleumNSE:ARABIAN +4.27%66 ROA % is 7.20% as of Mar. 2026, which is 1% below its 10-year median of 7.28. GuruFocus rates NSE:ARABIAN with a GF Score™ of 66/100 and a GF Value™ of ₹121.48 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 1,034 Oil & Gas companies, Arabian Petroleum ranks better than 80.27% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Arabian Petroleum's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹105 Mil.
Arabian Petroleum's average Total Assets over the quarter that ended in Mar. 2026 was ₹1,466 Mil. Therefore, Arabian Petroleum's annualized ROA % for the quarter that ended in Mar. 2026 was 7.20%.
The historical rank and industry rank for Arabian Petroleum's ROA % or its related term are showing as below:
NSE:ARABIAN'
s ROA % Range Over the Past 10 Years
Min: 4.07 Med: 7.28 Max: 8.84
Current: 8.42
During the past 7 years, Arabian Petroleum's highest ROA % was 8.84%. The lowest was 4.07%. And the median was 7.28%.
NSE:ARABIAN's ROA % is ranked better than 80.27% of 1034
companies
in the Oil & Gas industry
Industry Median: 2.535
vs NSE:ARABIAN: 8.42
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.
Arabian Petroleum ROA % Related Terms
Arabian Petroleum ROA % Historical Data
* Premium members only.
The historical data trend for Arabian Petroleum'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 Oil & Gas Refining & Marketing subindustry, Arabian Petroleum'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.
Arabian Petroleum ROA % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Arabian Petroleum's ROA % distribution charts can be found below:
* The bar in red indicates where Arabian Petroleum'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.
Arabian Petroleum (NSE:ARABIAN) has a ROA % of 7.20% 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 Arabian Petroleum and its competitors. This is near median its historical median of 7.28. Over the past decade, Arabian Petroleum's ROA % has ranged from 4.07 to 8.84. According to the industry distribution chart, Arabian Petroleum ranks #204 out of 1034 companies in the Oil & Gas industry, placing it in the top 19.7%.
Is Arabian Petroleum's ROA % too high?
Arabian Petroleum's current ROA % of 7.20% is near median its 10-year median of 7.28. Over the past 10 years, this metric has ranged from a low of 4.07 to a high of 8.84. The Oil & Gas industry median ROA % is 2.54. Arabian Petroleum's value of 7.20% is 184% above this industry median. Based on the distribution chart, Arabian Petroleum ranks #204 out of 1034 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Arabian Petroleum has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arabian Petroleum's ROA % compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Arabian Petroleum ranks #204 out of 1034 companies for ROA %. This places Arabian Petroleum in the top 20% of its industry — outperforming the majority of peers. The industry median ROA % is 2.54. Arabian Petroleum's value of 7.20% is 184% above this benchmark. Historically, Arabian Petroleum's own ROA % has ranged from 4.07 to 8.84 over the past decade. While the company's 10-year median is 7.28 vs. the industry median of 2.54, Arabian Petroleum 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 Oil & Gas company?
The median ROA % among Oil & Gas companies is 2.54, based on 1,034 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. Arabian Petroleum's current ROA % of 7.20% is 184% 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 Arabian Petroleum and its competitors. For the Oil & Gas industry, the median ROA % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Petroleum's current ROA % is 7.20%, which is near median its own 10-year median of 7.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Arabian Petroleum (NSE:ARABIAN) is currently considered Possible Value Trap. The stock's GF Value™ is ₹121.48, compared to a current price of ₹85.50 — trading 29.6% below its estimated fair value. The current ROA % is 7.20%, which is near median its 10-year median of 7.28 and 184% above the Oil & Gas industry median of 2.54. Arabian Petroleum's overall GF Score™ is 66/100 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 Arabian Petroleum (NSE:ARABIAN), the current ROA % is 7.20% 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 Arabian Petroleum (NSE:ARABIAN) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Petroleum stock appears to be undervalued.
The current stock price of ₹85.50 is trading 29.6% below its estimated GF Value™ of ₹121.48.
GuruFocus considers Arabian Petroleum to be Possible Value Trap.
Key valuation signals for NSE:ARABIAN:
ROA %: 7.20% (near median its 10-year median of 7.28)
GF Value™: ₹121.48 vs. price of ₹85.50 (29.6% below fair value)
Industry Position: 184% above the Oil & Gas median (#204 of 1034)
No single metric tells the full story. See the NSE:ARABIAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Petroleum Ltd is a company engaged in the business of manufacturing a wide range of Lubricants, including Specialty Oils, Coolants etc , used for Industrial and Automotive applications. The business is categorized into two distinctive product divisions, which include Automotive Lubricants - Arzol and Industrial Lubricants-SPL. Geographically, the company generates the majority of its revenue from India.
66GF Score
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