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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. ENC Digital Technology Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥14.7 Mil.
ENC Digital Technology Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥4,580.5 Mil. Therefore, ENC Digital Technology Co's annualized ROA % for the quarter that ended in Mar. 2026 was 0.32%.
The historical rank and industry rank for ENC Digital Technology Co's ROA % or its related term are showing as below:
SHSE:603869'
s ROA % Range Over the Past 10 Years
Min: -1.44 Med: 0.58 Max: 5.78
Current: 0.75
During the past 13 years, ENC Digital Technology Co's highest ROA % was 5.78%. The lowest was -1.44%. And the median was 0.58%.
SHSE:603869's ROA % is ranked worse than 54.39% of 2890
companies
in the Software industry
Industry Median: 1.705
vs SHSE:603869: 0.75
ENC Digital Technology Co (SHSE:603869) 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.
* 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 Information Technology Services subindustry, ENC Digital Technology 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.
ENC Digital Technology Co ROA % vs Software Industry
For the Software industry and Technology sector, ENC Digital Technology Co's ROA % distribution charts can be found below:
* The bar in red indicates where ENC Digital Technology Co'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.
ENC Digital Technology Co (SHSE:603869) has a ROA % of 0.32% 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 ENC Digital Technology Co and its competitors. This is 45% below median its historical median of 0.58. According to the industry distribution chart, ENC Digital Technology Co ranks #1572 out of 2890 companies in the Software industry, placing it in the top 54.4%.
Is ENC Digital Technology Co's ROA % too high?
ENC Digital Technology Co's current ROA % of 0.32% is 45% below median its 10-year median of 0.58. The Software industry median ROA % is 1.71. ENC Digital Technology Co's value of 0.32% is 81.2% below this industry median. Based on the distribution chart, ENC Digital Technology Co ranks #1572 out of 2890 companies in the Software industry, which is below the industry midpoint. Overall, ENC Digital Technology Co has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ENC Digital Technology Co's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, ENC Digital Technology Co ranks #1572 out of 2890 companies for ROA %. This places ENC Digital Technology Co in the lower half of its industry. The industry median ROA % is 1.71. ENC Digital Technology Co's value of 0.32% is 81.2% below this benchmark. While the company's 10-year median is 0.58 vs. the industry median of 1.71, ENC Digital Technology Co has consistently been below 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 Software company?
The median ROA % among Software companies is 1.71, based on 2,890 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. ENC Digital Technology Co's current ROA % of 0.32% is 81.2% below 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 ENC Digital Technology Co and its competitors. For the Software industry, the median ROA % is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ENC Digital Technology Co's current ROA % is 0.32%, which is 45% below median its own 10-year median of 0.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ENC Digital Technology Co stock overvalued right now?
Based on GuruFocus' analysis, ENC Digital Technology Co (SHSE:603869) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥6.77, compared to a current price of ¥8.27 — trading 22.2% above its estimated fair value. The current ROA % is 0.32%, which is 45% below median its 10-year median of 0.58 and 81.2% below the Software industry median of 1.71. ENC Digital Technology Co's overall GF Score™ is 61/100 with 2 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 ENC Digital Technology Co (SHSE:603869), the current ROA % is 0.32% 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 ENC Digital Technology Co (SHSE:603869) Overvalued in 2026?
Based on GuruFocus' analysis, ENC Digital Technology Co stock appears to be overvalued.
The current stock price of ¥8.27 is trading 22.2% above its estimated GF Value™ of ¥6.77.
GuruFocus considers ENC Digital Technology Co to be Modestly Overvalued.
Key valuation signals for SHSE:603869:
ROA %: 0.32% (45% below median its 10-year median of 0.58)
GF Value™: ¥6.77 vs. price of ¥8.27 (22.2% above fair value)
Industry Position: 81.2% below the Software median (#1572 of 2890)
No single metric tells the full story. See the SHSE:603869 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ENC Digital Technology Co Ltd operates in the Digital industry. Its products include Synthetic command system, Intelligent algorithm platform, Big data fusion service platform.
61GF Score
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