NSE:MOTHERSON's ROA % is ranked better than 56.85% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs NSE:MOTHERSON: 3.81
Samvardhana Motherson International (NSE:MOTHERSON) 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.
Samvardhana Motherson International ROA % Related Terms
Samvardhana Motherson International ROA % Historical 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.
For the Auto Parts subindustry, Samvardhana Motherson International'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.
Samvardhana Motherson International ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Samvardhana Motherson International's ROA % distribution charts can be found below:
* The bar in red indicates where Samvardhana Motherson International'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.
Samvardhana Motherson International (NSE:MOTHERSON) has a ROA % of 5.42% 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 Samvardhana Motherson International and its competitors. This is 45% above median its historical median of 3.75. Over the past decade, Samvardhana Motherson International's ROA % has ranged from 1.67 to 5.95. According to the industry distribution chart, Samvardhana Motherson International ranks #576 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 43.1%.
Is Samvardhana Motherson International's ROA % too high?
Samvardhana Motherson International's current ROA % of 5.42% is 45% above median its 10-year median of 3.75. Over the past 10 years, this metric has ranged from a low of 1.67 to a high of 5.95. The Vehicles & Parts industry median ROA % is 2.95. Samvardhana Motherson International's value of 5.42% is 83.7% above this industry median. Based on the distribution chart, Samvardhana Motherson International ranks #576 out of 1335 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Samvardhana Motherson International has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Samvardhana Motherson International's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Samvardhana Motherson International ranks #576 out of 1335 companies for ROA %. This puts Samvardhana Motherson International in the upper half of its industry. The industry median ROA % is 2.95. Samvardhana Motherson International's value of 5.42% is 83.7% above this benchmark. Historically, Samvardhana Motherson International's own ROA % has ranged from 1.67 to 5.95 over the past decade. While the company's 10-year median is 3.75 vs. the industry median of 2.95, Samvardhana Motherson International 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 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. Samvardhana Motherson International's current ROA % of 5.42% is 83.7% 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 Samvardhana Motherson International 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. Samvardhana Motherson International's current ROA % is 5.42%, which is 45% above median its own 10-year median of 3.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Samvardhana Motherson International stock overvalued right now?
Based on GuruFocus' analysis, Samvardhana Motherson International (NSE:MOTHERSON) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹114.24, compared to a current price of ₹151.71 — trading 32.8% above its estimated fair value. The current ROA % is 5.42%, which is 45% above median its 10-year median of 3.75 and 83.7% above the Vehicles & Parts industry median of 2.95. Samvardhana Motherson International's overall GF Score™ is 80/100 with 8 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 Samvardhana Motherson International (NSE:MOTHERSON), the current ROA % is 5.42% 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 Samvardhana Motherson International (NSE:MOTHERSON) Overvalued in 2026?
Based on GuruFocus' analysis, Samvardhana Motherson International stock appears to be overvalued.
The current stock price of ₹151.71 is trading 32.8% above its estimated GF Value™ of ₹114.24.
GuruFocus considers Samvardhana Motherson International to be Significantly Overvalued.
Key valuation signals for NSE:MOTHERSON:
ROA %: 5.42% (45% above median its 10-year median of 3.75)
GF Value™: ₹114.24 vs. price of ₹151.71 (32.8% above fair value)
Industry Position: 83.7% above the Vehicles & Parts median (#576 of 1335)
No single metric tells the full story. See the NSE:MOTHERSON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Samvardhana Motherson International Business Description
Samvardhana Motherson International Ltd is a manufacturer of automotive wiring harnesses and plastic components and modules. The products include wiring harnesses, mirrors for passenger cars, injection molded products, modules including dashboards, door trims, bumpers, blow moulded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components, and others. The company has five reportable segments such as Wiring Harness, Modules and polymer products, Integrated Assemblies, Vision systems and Emerging businesses. It derives majority of the revenue from Modules and polymer products segment which is engaged in manufacturing and supplies of plastic parts and system modules for vehicle interiors and exteriors.
80GF Score
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