Khgears InternationalTPE:4571 -4.69%95 ROA % is 12.32% as of Dec. 2025, which is 1% above its 10-year median of 12.19. GuruFocus rates TPE:4571 with a GF Score™ of 95/100 and a GF Value™ of NT$156.61 (Fairly Valued). The stock has 1 warning sign investors should review. Among 3,081 Industrial Products companies, Khgears International ranks better than 93.22% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Khgears International's annualizedNet Income for the quarter that ended in Dec. 2025 was NT$473 Mil.
Khgears International's average Total Assets over the quarter that ended in Dec. 2025 was NT$3,840 Mil. Therefore, Khgears International's annualized ROA % for the quarter that ended in Dec. 2025 was 12.32%.
The historical rank and industry rank for Khgears International's ROA % or its related term are showing as below:
TPE:4571'
s ROA % Range Over the Past 10 Years
Min: 7.67 Med: 12.19 Max: 13.6
Current: 12.91
During the past 10 years, Khgears International's highest ROA % was 13.60%. The lowest was 7.67%. And the median was 12.19%.
TPE:4571's ROA % is ranked better than 93.22% of 3081
companies
in the Industrial Products industry
Industry Median: 3.06
vs TPE:4571: 12.91
Khgears International (TPE:4571) 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 Tools & Accessories subindustry, Khgears 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.
Khgears International ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Khgears International's ROA % distribution charts can be found below:
* The bar in red indicates where Khgears 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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Khgears International (TPE:4571) has a ROA % of 12.32% 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 Khgears International and its competitors. This is near median its historical median of 12.19. Over the past decade, Khgears International's ROA % has ranged from 7.67 to 13.60. According to the industry distribution chart, Khgears International ranks #209 out of 3081 companies in the Industrial Products industry, placing it in the top 6.8%.
Is Khgears International's ROA % too high?
Khgears International's current ROA % of 12.32% is near median its 10-year median of 12.19. Over the past 10 years, this metric has ranged from a low of 7.67 to a high of 13.60. The Industrial Products industry median ROA % is 3.06. Khgears International's value of 12.32% is 302.6% above this industry median. Based on the distribution chart, Khgears International ranks #209 out of 3081 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Khgears International has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Khgears International's ROA % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Khgears International ranks #209 out of 3081 companies for ROA %. This places Khgears International in the top 7% of its industry — outperforming the majority of peers. The industry median ROA % is 3.06. Khgears International's value of 12.32% is 302.6% above this benchmark. Historically, Khgears International's own ROA % has ranged from 7.67 to 13.60 over the past decade. While the company's 10-year median is 12.19 vs. the industry median of 3.06, Khgears 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,081 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. Khgears International's current ROA % of 12.32% is 302.6% 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 Khgears International and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Khgears International's current ROA % is 12.32%, which is near median its own 10-year median of 12.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Khgears International stock overvalued right now?
Based on GuruFocus' analysis, Khgears International (TPE:4571) is currently considered Fairly Valued. The stock's GF Value™ is NT$156.61, compared to a current price of NT$162.50 — trading 3.8% above its estimated fair value. The current ROA % is 12.32%, which is near median its 10-year median of 12.19 and 302.6% above the Industrial Products industry median of 3.06. Khgears International's overall GF Score™ is 95/100 with 1 warning sign 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 Khgears International (TPE:4571), the current ROA % is 12.32% 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 Khgears International (TPE:4571) Overvalued in 2026?
Based on GuruFocus' analysis, Khgears International stock appears to be overvalued.
The current stock price of NT$162.50 is trading 3.8% above its estimated GF Value™ of NT$156.61.
GuruFocus considers Khgears International to be Fairly Valued.
Key valuation signals for TPE:4571:
ROA %: 12.32% (near median its 10-year median of 12.19)
GF Value™: NT$156.61 vs. price of NT$162.50 (3.8% above fair value)
Industry Position: 302.6% above the Industrial Products median (#209 of 3081)
No single metric tells the full story. See the TPE:4571 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Khgears International Ltd is engaged in the designing, manufacturing, and sale of shafts, gears and gearboxes for many industries. Its products include bevel gears, cylindrical gears, powder metallurgical gears, and gearboxes. The service industry includes sewing machines, power tools, garden tools and yachting industries.
95GF Score
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