Chen Nan Iron Wire Co (ROCO:2071) ROA %: 4.26% (As of Dec. 2025) — 11% Above Median

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ROCO:2071 Chen Nan Iron Wire Co Ltd ROCO:2071
79 GF Score
Price NT$36.00
GF Value NT$22.58
Valuation Significantly Overvalued
! 7 Warning Signs
View Full Analysis

What is Chen Nan Iron Wire Co ROA %?

Chen Nan Iron Wire Co ROCO:2071 +9.59% 79 ROA % is 4.26% as of Dec. 2025, which is 11% above its 10-year median of 3.85. GuruFocus rates ROCO:2071 with a GF Score™ of 79/100 and a GF Value™ of NT$22.58 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 3,076 Industrial Products companies, Chen Nan Iron Wire Co ranks better than 58.62% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Chen Nan Iron Wire Co's annualized Net Income for the quarter that ended in Dec. 2025 was NT$104 Mil. Chen Nan Iron Wire Co's average Total Assets over the quarter that ended in Dec. 2025 was NT$2,434 Mil. Therefore, Chen Nan Iron Wire Co's annualized ROA % for the quarter that ended in Dec. 2025 was 4.26%.

The historical rank and industry rank for Chen Nan Iron Wire Co's ROA % or its related term are showing as below:

ROCO:2071' s ROA % Range Over the Past 10 Years
Min: -1.65   Med: 3.85   Max: 10.03
Current: 4.2

During the past 11 years, Chen Nan Iron Wire Co's highest ROA % was 10.03%. The lowest was -1.65%. And the median was 3.85%.

ROCO:2071's ROA % is ranked better than
58.62% of 3076 companies
in the Industrial Products industry
Industry Median: 3.045 vs ROCO:2071: 4.20

Chen Nan Iron Wire Co  (ROCO:2071) 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 bank’s 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:

ROA %(Q: Dec. 2025 )
=Net Income/Total Assets
=103.774/2433.87
=(Net Income / Revenue)*(Revenue / Total Assets)
=(103.774 / 1486.978)*(1486.978 / 2433.87)
=Net Margin %*Asset Turnover
=6.98 %*0.611
=4.26 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.


Chen Nan Iron Wire Co ROA % Related Terms


Chen Nan Iron Wire Co ROA % Historical Data

* Premium members only.

The historical data trend for Chen Nan Iron Wire 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.

Chen Nan Iron Wire Co ROA % Chart

Chen Nan Iron Wire Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.44 10.03 4.90 5.65 4.24

Chen Nan Iron Wire Co Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.85 5.24 5.97 4.09 4.26

ROCO:2071 vs SNA, RBC, LECO: ROA % Comparison

For the Tools & Accessories subindustry, Chen Nan Iron Wire 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.


Chen Nan Iron Wire Co ROA % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Chen Nan Iron Wire Co's ROA % distribution charts can be found below:

* The bar in red indicates where Chen Nan Iron Wire Co's ROA % falls into.


ROCO:2071
79GF Score
Chen Nan Iron Wire Co Ltd ROCO:2071
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Chen Nan Iron Wire Co ROA % Calculation

Chen Nan Iron Wire Co's annualized ROA % for the fiscal year that ended in Dec. 2025 is calculated as:

ROA %=Net Income (A: Dec. 2025 )/( (Total Assets (A: Dec. 2024 )+Total Assets (A: Dec. 2025 ))/ count )
=103.203/( (2510.695+2354.129)/ 2 )
=103.203/2432.412
=4.24 %

Chen Nan Iron Wire Co's annualized ROA % for the quarter that ended in Dec. 2025 is calculated as:

ROA %=Net Income (Q: Dec. 2025 )/( (Total Assets (Q: Jun. 2025 )+Total Assets (Q: Dec. 2025 ))/ count )
=103.774/( (2513.611+2354.129)/ 2 )
=103.774/2433.87
=4.26 %

* 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 (Dec. 2025) net income data. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 4.26% mean?
Chen Nan Iron Wire Co (ROCO:2071) has a ROA % of 4.26% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Chen Nan Iron Wire Co and its competitors. This is 11% above median its historical median of 3.85. According to the industry distribution chart, Chen Nan Iron Wire Co ranks #1273 out of 3076 companies in the Industrial Products industry, placing it in the top 41.4%.
Is Chen Nan Iron Wire Co's ROA % too high?
Chen Nan Iron Wire Co's current ROA % of 4.26% is 11% above median its 10-year median of 3.85. The Industrial Products industry median ROA % is 3.05. Chen Nan Iron Wire Co's value of 4.26% is 39.9% above this industry median. Based on the distribution chart, Chen Nan Iron Wire Co ranks #1273 out of 3076 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Chen Nan Iron Wire Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chen Nan Iron Wire Co's ROA % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Chen Nan Iron Wire Co ranks #1273 out of 3076 companies for ROA %. This puts Chen Nan Iron Wire Co in the upper half of its industry. The industry median ROA % is 3.05. Chen Nan Iron Wire Co's value of 4.26% is 39.9% above this benchmark. While the company's 10-year median is 3.85 vs. the industry median of 3.05, Chen Nan Iron Wire Co 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 Industrial Products company?
The median ROA % among Industrial Products companies is 3.05, based on 3,076 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. Chen Nan Iron Wire Co's current ROA % of 4.26% is 39.9% 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 Chen Nan Iron Wire Co and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chen Nan Iron Wire Co's current ROA % is 4.26%, which is 11% above median its own 10-year median of 3.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chen Nan Iron Wire Co stock overvalued right now?
Based on GuruFocus' analysis, Chen Nan Iron Wire Co (ROCO:2071) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$22.58, compared to a current price of NT$36.00 — trading 59.4% above its estimated fair value. The current ROA % is 4.26%, which is 11% above median its 10-year median of 3.85 and 39.9% above the Industrial Products industry median of 3.05. Chen Nan Iron Wire Co's overall GF Score™ is 79/100 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 Chen Nan Iron Wire Co (ROCO:2071), the current ROA % is 4.26% as of Dec. 2025. 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 Chen Nan Iron Wire Co (ROCO:2071) Overvalued in 2026?

Based on GuruFocus' analysis, Chen Nan Iron Wire Co stock appears to be overvalued. The current stock price of NT$36.00 is trading 59.4% above its estimated GF Value™ of NT$22.58. GuruFocus considers Chen Nan Iron Wire Co to be Significantly Overvalued.

Key valuation signals for ROCO:2071:

  • ROA %: 4.26% (11% above median its 10-year median of 3.85)
  • GF Value™: NT$22.58 vs. price of NT$36.00 (59.4% above fair value)
  • GF Score™: 79/100 with 7 warning signs
  • Industry Position: 39.9% above the Industrial Products median (#1273 of 3076)

No single metric tells the full story. See the ROCO:2071 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chen Nan Iron Wire Co Business Description

Address No.202, Lane 275, Shun-an Road, Luzhu District, Kaohsiung, TWN, 82150
Chen Nan Iron Wire Co Ltd is a Taiwan-based company engaged in providing products such as Self Drilling Screws, Roofing Screws, Chipboard Screws, Carbon Steel Wire, Alloy Wire, Bolts, and Nuts among others.
79GF Score

Get the complete analysis for ROCO:2071

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$36.00
Price
NT$22.58
GF Value