MRFNSE:MRF -0.44%94 ROA % is 8.79% as of Mar. 2026, which is 27% above its 10-year median of 6.91. GuruFocus rates NSE:MRF with a GF Score™ of 94/100 and a GF Value™ of ₹158,905.75 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,335 Vehicles & Parts companies, MRF ranks better than 82.32% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. MRF's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹28,090 Mil.
MRF's average Total Assets over the quarter that ended in Mar. 2026 was ₹319,535 Mil. Therefore, MRF's annualized ROA % for the quarter that ended in Mar. 2026 was 8.79%.
The historical rank and industry rank for MRF's ROA % or its related term are showing as below:
NSE:MRF'
s ROA % Range Over the Past 10 Years
Min: 2.93 Med: 6.91 Max: 11.85
Current: 7.91
During the past 13 years, MRF's highest ROA % was 11.85%. The lowest was 2.93%. And the median was 6.91%.
NSE:MRF's ROA % is ranked better than 82.32% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs NSE:MRF: 7.91
MRF (NSE:MRF) 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.
MRF ROA % Related Terms
MRF ROA % Historical Data
* Premium members only.
The historical data trend for MRF'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, MRF'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.
MRF ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, MRF's ROA % distribution charts can be found below:
* The bar in red indicates where MRF'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.
MRF (NSE:MRF) has a ROA % of 8.79% 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 MRF and its competitors. This is 27% above median its historical median of 6.91. Over the past decade, MRF's ROA % has ranged from 2.93 to 11.85. According to the industry distribution chart, MRF ranks #236 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 17.7%.
Is MRF's ROA % too high?
MRF's current ROA % of 8.79% is 27% above median its 10-year median of 6.91. Over the past 10 years, this metric has ranged from a low of 2.93 to a high of 11.85. The Vehicles & Parts industry median ROA % is 2.95. MRF's value of 8.79% is 198% above this industry median. Based on the distribution chart, MRF ranks #236 out of 1335 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, MRF has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MRF's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, MRF ranks #236 out of 1335 companies for ROA %. This places MRF in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 2.95. MRF's value of 8.79% is 198% above this benchmark. Historically, MRF's own ROA % has ranged from 2.93 to 11.85 over the past decade. While the company's 10-year median is 6.91 vs. the industry median of 2.95, MRF 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. MRF's current ROA % of 8.79% is 198% 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 MRF 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. MRF's current ROA % is 8.79%, which is 27% above median its own 10-year median of 6.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MRF stock overvalued right now?
Based on GuruFocus' analysis, MRF (NSE:MRF) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹158,905.75, compared to a current price of ₹129,550.00 — trading 18.5% below its estimated fair value. The current ROA % is 8.79%, which is 27% above median its 10-year median of 6.91 and 198% above the Vehicles & Parts industry median of 2.95. MRF's overall GF Score™ is 94/100 with 1 warning sign 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 MRF (NSE:MRF), the current ROA % is 8.79% 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 MRF (NSE:MRF) Overvalued in 2026?
Based on GuruFocus' analysis, MRF stock appears to be undervalued.
The current stock price of ₹129,550.00 is trading 18.5% below its estimated GF Value™ of ₹158,905.75.
GuruFocus considers MRF to be Modestly Undervalued.
Key valuation signals for NSE:MRF:
ROA %: 8.79% (27% above median its 10-year median of 6.91)
GF Value™: ₹158,905.75 vs. price of ₹129,550.00 (18.5% below fair value)
Industry Position: 198% above the Vehicles & Parts median (#236 of 1335)
No single metric tells the full story. See the NSE:MRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MRF Ltd makes and sells rubber products, including tires, tubes, tread rubber, conveyor belts, and building and floor coatings. The firm's tires are used for automobiles, commercial trucks, and farm equipment. The company sells tires under the MRF brand name. MRF also operates multiple retail stores that sell tires and offer services. Stores under the MRF TireRok brand offer wheel alignment and air conditioning repair. MRF Musclezone stores offer tire servicing for commercial vehicles. MRF Tyredom stores offer a wheel alignment and car washes. The majority of revenue comes from India.
94GF Score
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