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Founding Construction Development Co (TPE:5533) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Founding Construction Development Co ROA % Related Terms
Founding Construction Development Co 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 Real Estate Services subindustry, Founding Construction Development 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.
Founding Construction Development Co ROA % vs Real Estate 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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Founding Construction Development Co (TPE:5533) has a ROA % of 2.27% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Founding Construction Development Co and its competitors. This is near median its historical median of 2.08. Over the past decade, Founding Construction Development Co's ROA % has ranged from 0.63 to 7.88. According to the industry distribution chart, Founding Construction Development Co ranks #965 out of 1797 companies in the Real Estate industry, placing it in the top 53.7%.
Is Founding Construction Development Co's ROA % too high?
Founding Construction Development Co's current ROA % of 2.27% is near median its 10-year median of 2.08. Over the past 10 years, this metric has ranged from a low of 0.63 to a high of 7.88. The Real Estate industry median ROA % is 1.80. Founding Construction Development Co's value of 2.27% is 26.1% above this industry median. Based on the distribution chart, Founding Construction Development Co ranks #965 out of 1797 companies in the Real Estate industry, which is below the industry midpoint. Overall, Founding Construction Development Co has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Founding Construction Development Co's ROA % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Founding Construction Development Co ranks #965 out of 1797 companies for ROA %. This places Founding Construction Development Co in the lower half of its industry. The industry median ROA % is 1.80. Founding Construction Development Co's value of 2.27% is 26.1% above this benchmark. Historically, Founding Construction Development Co's own ROA % has ranged from 0.63 to 7.88 over the past decade. While the company's 10-year median is 2.08 vs. the industry median of 1.80, Founding Construction Development Co 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 Real Estate company?
The median ROA % among Real Estate companies is 1.80, based on 1,797 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. Founding Construction Development Co's current ROA % of 2.27% is 26.1% 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 Founding Construction Development Co and its competitors. For the Real Estate industry, the median ROA % is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Founding Construction Development Co's current ROA % is 2.27%, which is near median its own 10-year median of 2.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Founding Construction Development Co stock overvalued right now?
Based on GuruFocus' analysis, Founding Construction Development Co (TPE:5533) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$9.81, compared to a current price of NT$14.00 — trading 42.7% above its estimated fair value. The current ROA % is 2.27%, which is near median its 10-year median of 2.08 and 26.1% above the Real Estate industry median of 1.80. Founding Construction Development Co's overall GF Score™ is 70/100 with 8 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 Founding Construction Development Co (TPE:5533), the current ROA % is 2.27% as of Jun. 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 Founding Construction Development Co (TPE:5533) Overvalued in 2026?
Based on GuruFocus' analysis, Founding Construction Development Co stock appears to be overvalued.
The current stock price of NT$14.00 is trading 42.7% above its estimated GF Value™ of NT$9.81.
GuruFocus considers Founding Construction Development Co to be Significantly Overvalued.
Key valuation signals for TPE:5533:
ROA %: 2.27% (near median its 10-year median of 2.08)
GF Value™: NT$9.81 vs. price of NT$14.00 (42.7% above fair value)
Industry Position: 26.1% above the Real Estate median (#965 of 1797)
No single metric tells the full story. See the TPE:5533 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founding Construction Development Co Ltd is engaged in appointments and management of contractors to build public housing developments and commercial buildings for leasing and selling, trading of construction materials and machines, designs and constructions of interior decoration, etc. Its operating segment comprises the Architecture segment, Construction segment, and Hospitality segment. The Architecture segment accounts for the majority of its revenue.
70GF 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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