Cathay Chemical WorksTPE:1713 +0.10%74 ROA % is 20.45% as of Dec. 2025, which is 274% above its 10-year median of 5.47. GuruFocus rates TPE:1713 with a GF Score™ of 74/100 and a GF Value™ of NT$42.92 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,614 Chemicals companies, Cathay Chemical Works ranks better than 94.73% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Cathay Chemical Works's annualizedNet Income for the quarter that ended in Dec. 2025 was NT$791.4 Mil.
Cathay Chemical Works's average Total Assets over the quarter that ended in Dec. 2025 was NT$3,869.8 Mil. Therefore, Cathay Chemical Works's annualized ROA % for the quarter that ended in Dec. 2025 was 20.45%.
The historical rank and industry rank for Cathay Chemical Works's ROA % or its related term are showing as below:
TPE:1713'
s ROA % Range Over the Past 10 Years
Min: 2.99 Med: 5.47 Max: 41.03
Current: 13.49
During the past 13 years, Cathay Chemical Works's highest ROA % was 41.03%. The lowest was 2.99%. And the median was 5.47%.
TPE:1713's ROA % is ranked better than 94.73% of 1614
companies
in the Chemicals industry
Industry Median: 2.9
vs TPE:1713: 13.49
Cathay Chemical Works (TPE:1713) 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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (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.
* 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, Cathay Chemical Works'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.
Cathay Chemical Works ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cathay Chemical Works's ROA % distribution charts can be found below:
* The bar in red indicates where Cathay Chemical Works'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Cathay Chemical Works (TPE:1713) has a ROA % of 20.45% 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 Cathay Chemical Works and its competitors. This is 274% above median its historical median of 5.47. Over the past decade, Cathay Chemical Works' ROA % has ranged from 2.99 to 41.03. According to the industry distribution chart, Cathay Chemical Works ranks #85 out of 1614 companies in the Chemicals industry, placing it in the top 5.3%.
Is Cathay Chemical Works' ROA % too high?
Cathay Chemical Works' current ROA % of 20.45% is 274% above median its 10-year median of 5.47. Over the past 10 years, this metric has ranged from a low of 2.99 to a high of 41.03. The Chemicals industry median ROA % is 2.90. Cathay Chemical Works' value of 20.45% is 605.2% above this industry median. Based on the distribution chart, Cathay Chemical Works ranks #85 out of 1614 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Cathay Chemical Works has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cathay Chemical Works' ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Cathay Chemical Works ranks #85 out of 1614 companies for ROA %. This places Cathay Chemical Works in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 2.90. Cathay Chemical Works' value of 20.45% is 605.2% above this benchmark. Historically, Cathay Chemical Works' own ROA % has ranged from 2.99 to 41.03 over the past decade. While the company's 10-year median is 5.47 vs. the industry median of 2.90, Cathay Chemical Works 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 2.90, based on 1,614 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. Cathay Chemical Works's current ROA % of 20.45% is 605.2% 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 Cathay Chemical Works and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Chemical Works's current ROA % is 20.45%, which is 274% above median its own 10-year median of 5.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Chemical Works stock overvalued right now?
Based on GuruFocus' analysis, Cathay Chemical Works (TPE:1713) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$42.92, compared to a current price of NT$49.55 — trading 15.4% above its estimated fair value. The current ROA % is 20.45%, which is 274% above median its 10-year median of 5.47 and 605.2% above the Chemicals industry median of 2.90. Cathay Chemical Works' overall GF Score™ is 74/100 with 6 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 Cathay Chemical Works (TPE:1713), the current ROA % is 20.45% 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 Cathay Chemical Works (TPE:1713) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Chemical Works stock appears to be overvalued.
The current stock price of NT$49.55 is trading 15.4% above its estimated GF Value™ of NT$42.92.
GuruFocus considers Cathay Chemical Works to be Modestly Overvalued.
Key valuation signals for TPE:1713:
ROA %: 20.45% (274% above median its 10-year median of 5.47)
GF Value™: NT$42.92 vs. price of NT$49.55 (15.4% above fair value)
Industry Position: 605.2% above the Chemicals median (#85 of 1614)
No single metric tells the full story. See the TPE:1713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Chemical Works Inc Company's mainly business is the manufacture and sale of sodium hydrosulfite, zinc oxide, sodium formaldehyde sulfoxylate, zinc dust and so on. It is the sole operating department. The company has presence in Taiwan, Asia, America, Europe, New Zealand and Australia. The majority of revenue comes from Taiwan.
74GF Score
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