TPE:2516's ROA % is ranked better than 57.01% of 1777
companies
in the Construction industry
Industry Median: 2.79
vs TPE:2516: 3.74
New Asia Construction & Development (TPE:2516) 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.
New Asia Construction & Development ROA % Related Terms
New Asia Construction & Development 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 Engineering & Construction subindustry, New Asia Construction & Development'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.
New Asia Construction & Development ROA % vs Construction Industry
* 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.
New Asia Construction & Development (TPE:2516) has a ROA % of 7.56% 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 New Asia Construction & Development and its competitors. This is 1226% above median its historical median of 0.57. According to the industry distribution chart, New Asia Construction & Development ranks #764 out of 1777 companies in the Construction industry, placing it in the top 43%.
Is New Asia Construction & Development's ROA % too high?
New Asia Construction & Development's current ROA % of 7.56% is 1226% above median its 10-year median of 0.57. The Construction industry median ROA % is 2.79. New Asia Construction & Development's value of 7.56% is 171% above this industry median. Based on the distribution chart, New Asia Construction & Development ranks #764 out of 1777 companies in the Construction industry, which is above the industry midpoint. Overall, New Asia Construction & Development has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does New Asia Construction & Development's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, New Asia Construction & Development ranks #764 out of 1777 companies for ROA %. This puts New Asia Construction & Development in the upper half of its industry. The industry median ROA % is 2.79. New Asia Construction & Development's value of 7.56% is 171% above this benchmark. While the company's 10-year median is 0.57 vs. the industry median of 2.79, New Asia Construction & Development 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 Construction company?
The median ROA % among Construction companies is 2.79, based on 1,777 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. New Asia Construction & Development's current ROA % of 7.56% is 171% 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 New Asia Construction & Development and its competitors. For the Construction industry, the median ROA % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Asia Construction & Development's current ROA % is 7.56%, which is 1226% above median its own 10-year median of 0.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Asia Construction & Development stock overvalued right now?
Based on GuruFocus' analysis, New Asia Construction & Development (TPE:2516) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$15.85, compared to a current price of NT$13.70 — trading 13.6% below its estimated fair value. The current ROA % is 7.56%, which is 1226% above median its 10-year median of 0.57 and 171% above the Construction industry median of 2.79. New Asia Construction & Development's overall GF Score™ is 79/100 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 New Asia Construction & Development (TPE:2516), the current ROA % is 7.56% 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 New Asia Construction & Development (TPE:2516) Overvalued in 2026?
Based on GuruFocus' analysis, New Asia Construction & Development stock appears to be undervalued.
The current stock price of NT$13.70 is trading 13.6% below its estimated GF Value™ of NT$15.85.
GuruFocus considers New Asia Construction & Development to be Modestly Undervalued.
Key valuation signals for TPE:2516:
ROA %: 7.56% (1226% above median its 10-year median of 0.57)
GF Value™: NT$15.85 vs. price of NT$13.70 (13.6% below fair value)
Industry Position: 171% above the Construction median (#764 of 1777)
No single metric tells the full story. See the TPE:2516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Asia Construction & Development Business Description
New Asia Construction & Development Corp and its subsidiaries are engaged in the construction of heavy equipment needed for civil engineering, development business related to land and community, construction, leasing or selling of public housing and office building, repairment, leasing and selling of heavy equipment, manufacturing and selling of ready mixed concrete and asphalt concrete, and investment. The Group operates in the construction segment, which is engaged in the construction of residential and commercial buildings and civil engineering contracts. The company operates in Taiwan and Asia, and the maximum revenue is generated from Taiwan.
79GF Score
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ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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