Zyxel GroupTPE:3704 -9.85%75 ROA % is 3.22% as of Dec. 2025, which is 19% above its 10-year median of 2.71. GuruFocus rates TPE:3704 with a GF Score™ of 75/100 and a GF Value™ of NT$36.76 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,498 Hardware companies, Zyxel Group ranks better than 53.88% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Zyxel Group's annualizedNet Income for the quarter that ended in Dec. 2025 was NT$711 Mil.
Zyxel Group's average Total Assets over the quarter that ended in Dec. 2025 was NT$22,076 Mil. Therefore, Zyxel Group's annualized ROA % for the quarter that ended in Dec. 2025 was 3.22%.
The historical rank and industry rank for Zyxel Group's ROA % or its related term are showing as below:
TPE:3704'
s ROA % Range Over the Past 10 Years
Min: -3.89 Med: 2.71 Max: 6.68
Current: 2.79
During the past 13 years, Zyxel Group's highest ROA % was 6.68%. The lowest was -3.89%. And the median was 2.71%.
TPE:3704's ROA % is ranked better than 53.88% of 2498
companies
in the Hardware industry
Industry Median: 2.27
vs TPE:3704: 2.79
Zyxel Group (TPE:3704) 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.
Zyxel Group ROA % Related Terms
Zyxel Group ROA % Historical Data
* Premium members only.
The historical data trend for Zyxel Group'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.
For the Communication Equipment subindustry, Zyxel Group'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.
Zyxel Group ROA % vs Hardware Industry
For the Hardware industry and Technology sector, Zyxel Group's ROA % distribution charts can be found below:
* The bar in red indicates where Zyxel Group'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.
Zyxel Group (TPE:3704) has a ROA % of 3.22% 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 Zyxel Group and its competitors. This is 19% above median its historical median of 2.71. According to the industry distribution chart, Zyxel Group ranks #1152 out of 2498 companies in the Hardware industry, placing it in the top 46.1%.
Is Zyxel Group's ROA % too high?
Zyxel Group's current ROA % of 3.22% is 19% above median its 10-year median of 2.71. The Hardware industry median ROA % is 2.27. Zyxel Group's value of 3.22% is 41.9% above this industry median. Based on the distribution chart, Zyxel Group ranks #1152 out of 2498 companies in the Hardware industry, which is above the industry midpoint. Overall, Zyxel Group has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zyxel Group's ROA % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Zyxel Group ranks #1152 out of 2498 companies for ROA %. This puts Zyxel Group in the upper half of its industry. The industry median ROA % is 2.27. Zyxel Group's value of 3.22% is 41.9% above this benchmark. While the company's 10-year median is 2.71 vs. the industry median of 2.27, Zyxel Group 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 Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,498 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. Zyxel Group's current ROA % of 3.22% is 41.9% 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 Zyxel Group and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zyxel Group's current ROA % is 3.22%, which is 19% above median its own 10-year median of 2.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zyxel Group stock overvalued right now?
Based on GuruFocus' analysis, Zyxel Group (TPE:3704) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$36.76, compared to a current price of NT$43.00 — trading 17% above its estimated fair value. The current ROA % is 3.22%, which is 19% above median its 10-year median of 2.71 and 41.9% above the Hardware industry median of 2.27. Zyxel Group's overall GF Score™ is 75/100 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 Zyxel Group (TPE:3704), the current ROA % is 3.22% 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 Zyxel Group (TPE:3704) Overvalued in 2026?
Based on GuruFocus' analysis, Zyxel Group stock appears to be overvalued.
The current stock price of NT$43.00 is trading 17% above its estimated GF Value™ of NT$36.76.
GuruFocus considers Zyxel Group to be Modestly Overvalued.
Key valuation signals for TPE:3704:
ROA %: 3.22% (19% above median its 10-year median of 2.71)
GF Value™: NT$36.76 vs. price of NT$43.00 (17% above fair value)
Industry Position: 41.9% above the Hardware median (#1152 of 2498)
No single metric tells the full story. See the TPE:3704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zyxel Group Corp is a Taiwan-based company that offers communications and networking products. It produces wifi systems, wireless extenders, home routers, cloud access cameras, switches, power and adapters, personal cloud storage, and security appliances and services. Geographically, it covers the United States, France, and other countries. It has four reportable segments: brand business segment, channel business segment, product business segment, and investment segment.
75GF Score
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