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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Mechema Chemicals International's annualizedNet Income for the quarter that ended in Mar. 2026 was NT$502 Mil.
Mechema Chemicals International's average Total Assets over the quarter that ended in Mar. 2026 was NT$2,368 Mil. Therefore, Mechema Chemicals International's annualized ROA % for the quarter that ended in Mar. 2026 was 21.19%.
Mechema Chemicals International (ROCO:4721) 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.
Mechema Chemicals International ROA % Related Terms
Mechema Chemicals 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 Specialty Chemicals subindustry, Mechema Chemicals 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.
Mechema Chemicals International ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mechema Chemicals International's ROA % distribution charts can be found below:
* The bar in red indicates where Mechema Chemicals 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.
Mechema Chemicals International (ROCO:4721) has a ROA % of 21.19% 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 Mechema Chemicals International and its competitors. This is 101% above median its historical median of 10.53. According to the industry distribution chart, Mechema Chemicals International ranks #111 out of 1616 companies in the Chemicals industry, placing it in the top 6.9%.
Is Mechema Chemicals International's ROA % too high?
Mechema Chemicals International's current ROA % of 21.19% is 101% above median its 10-year median of 10.53. The Chemicals industry median ROA % is 3.05. Mechema Chemicals International's value of 21.19% is 595.9% above this industry median. Based on the distribution chart, Mechema Chemicals International ranks #111 out of 1616 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Mechema Chemicals International has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mechema Chemicals International's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Mechema Chemicals International ranks #111 out of 1616 companies for ROA %. This places Mechema Chemicals International in the top 7% of its industry — outperforming the majority of peers. The industry median ROA % is 3.05. Mechema Chemicals International's value of 21.19% is 595.9% above this benchmark. While the company's 10-year median is 10.53 vs. the industry median of 3.05, Mechema Chemicals 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 Chemicals company?
The median ROA % among Chemicals companies is 3.05, based on 1,616 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. Mechema Chemicals International's current ROA % of 21.19% is 595.9% 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 Mechema Chemicals International and its competitors. For the Chemicals industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mechema Chemicals International's current ROA % is 21.19%, which is 101% above median its own 10-year median of 10.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mechema Chemicals International stock overvalued right now?
Based on GuruFocus' analysis, Mechema Chemicals International (ROCO:4721) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$90.45, compared to a current price of NT$76.30 — trading 15.6% below its estimated fair value. The current ROA % is 21.19%, which is 101% above median its 10-year median of 10.53 and 595.9% above the Chemicals industry median of 3.05. Mechema Chemicals International's overall GF Score™ is 71/100 with 3 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 Mechema Chemicals International (ROCO:4721), the current ROA % is 21.19% 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 Mechema Chemicals International (ROCO:4721) Overvalued in 2026?
Based on GuruFocus' analysis, Mechema Chemicals International stock appears to be undervalued.
The current stock price of NT$76.30 is trading 15.6% below its estimated GF Value™ of NT$90.45.
GuruFocus considers Mechema Chemicals International to be Modestly Undervalued.
Key valuation signals for ROCO:4721:
ROA %: 21.19% (101% above median its 10-year median of 10.53)
GF Value™: NT$90.45 vs. price of NT$76.30 (15.6% below fair value)
Industry Position: 595.9% above the Chemicals median (#111 of 1616)
No single metric tells the full story. See the ROCO:4721 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mechema Chemicals International Corp is engaged in the manufacturing, distribution, sales, import, and export of cobalt and its compounds and manganese and its compounds. The segments of the company are the oxidation catalysts and the battery material department. Maximum revenue is derives from Battery Material Department. Geographically, it has a presence in Taiwan, China, Korea, Thailand, Malaysia, Indonesia, Japan, and Other regions.
71GF Score
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