ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Essar Shipping's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹-1,422.80 Mil.
Essar Shipping's average Total Assets over the quarter that ended in Mar. 2026 was ₹3,170.30 Mil. Therefore, Essar Shipping's annualized ROA % for the quarter that ended in Mar. 2026 was -44.88%.
The historical rank and industry rank for Essar Shipping's ROA % or its related term are showing as below:
NSE:ESSARSHPNG'
s ROA % Range Over the Past 10 Years
Min: -61.85 Med: -15.75 Max: 148.91
Current: -36.78
During the past 13 years, Essar Shipping's highest ROA % was 148.91%. The lowest was -61.85%. And the median was -15.75%.
NSE:ESSARSHPNG's ROA % is ranked worse than 98.61% of 1007
companies
in the Transportation industry
Industry Median: 3.43
vs NSE:ESSARSHPNG: -36.78
Essar Shipping (NSE:ESSARSHPNG) 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.
Essar Shipping ROA % Related Terms
Essar Shipping ROA % Historical Data
* Premium members only.
The historical data trend for Essar Shipping'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 Marine Shipping subindustry, Essar Shipping'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.
Essar Shipping ROA % vs Transportation Industry
For the Transportation industry and Industrials sector, Essar Shipping's ROA % distribution charts can be found below:
* The bar in red indicates where Essar Shipping'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.
Essar Shipping (NSE:ESSARSHPNG) has a ROA % of -44.88% 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 Essar Shipping and its competitors. According to the industry distribution chart, Essar Shipping ranks #993 out of 1007 companies in the Transportation industry, placing it in the top 98.6%.
Is Essar Shipping's ROA % too high?
Essar Shipping's current ROA % is -44.88%. Based on the distribution chart, Essar Shipping ranks #993 out of 1007 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Essar Shipping has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Essar Shipping's ROA % compare to competitors?
According to the Transportation industry distribution chart, Essar Shipping ranks #993 out of 1007 companies for ROA %. This places Essar Shipping in the lower half of its industry. The industry median ROA % is 3.43. 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 Transportation company?
The median ROA % among Transportation companies is 3.43, based on 1,007 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. 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 Essar Shipping and its competitors. For the Transportation industry, the median ROA % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essar Shipping's current ROA % is -44.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essar Shipping stock overvalued right now?
Based on GuruFocus' analysis, Essar Shipping (NSE:ESSARSHPNG) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1.07, compared to a current price of ₹23.23 — trading 2071% above its estimated fair value. The current ROA % is -44.88%. Essar Shipping's overall GF Score™ is 34/100 with 7 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 Essar Shipping (NSE:ESSARSHPNG), the current ROA % is -44.88% 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 Essar Shipping (NSE:ESSARSHPNG) Overvalued in 2026?
Based on GuruFocus' analysis, Essar Shipping stock appears to be overvalued.
The current stock price of ₹23.23 is trading 2071% above its estimated GF Value™ of ₹1.07.
GuruFocus considers Essar Shipping to be Significantly Overvalued.
Key valuation signals for NSE:ESSARSHPNG:
ROA %: -44.88%
GF Value™: ₹1.07 vs. price of ₹23.23 (2071% above fair value)
No single metric tells the full story. See the NSE:ESSARSHPNG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Essar Shipping Ltd is engaged in fleet operating and chartering and operates in international and coastal voyages. The company is diversified across various sectors of Energy, Infrastructure, steel, and Services. The company operates in Fleet operations and chartering, oilfield services, and logistics services. The company generates maximum revenue from a single operating segment, namely the Shipping segment.
34GF Score
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