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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
Powerchip Semiconductor Manufacturing ROA % Related Terms
Powerchip Semiconductor Manufacturing 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 Semiconductors subindustry, Powerchip Semiconductor Manufacturing'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.
Powerchip Semiconductor Manufacturing ROA % vs Semiconductors 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Powerchip Semiconductor Manufacturing (TPE:6770) has a ROA % of 32.40% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Powerchip Semiconductor Manufacturing and its competitors. This is 1132% above median its historical median of 2.63. According to the industry distribution chart, Powerchip Semiconductor Manufacturing ranks #412 out of 1028 companies in the Semiconductors industry, placing it in the top 40.1%.
Is Powerchip Semiconductor Manufacturing's ROA % too high?
Powerchip Semiconductor Manufacturing's current ROA % of 32.40% is 1132% above median its 10-year median of 2.63. The Semiconductors industry median ROA % is 2.45. Powerchip Semiconductor Manufacturing's value of 32.40% is 1222.4% above this industry median. Based on the distribution chart, Powerchip Semiconductor Manufacturing ranks #412 out of 1028 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Powerchip Semiconductor Manufacturing has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Powerchip Semiconductor Manufacturing's ROA % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Powerchip Semiconductor Manufacturing ranks #412 out of 1028 companies for ROA %. This puts Powerchip Semiconductor Manufacturing in the upper half of its industry. The industry median ROA % is 2.45. Powerchip Semiconductor Manufacturing's value of 32.40% is 1222.4% above this benchmark. While the company's 10-year median is 2.63 vs. the industry median of 2.45, Powerchip Semiconductor Manufacturing 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 Semiconductors company?
The median ROA % among Semiconductors companies is 2.45, based on 1,028 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. Powerchip Semiconductor Manufacturing's current ROA % of 32.40% is 1222.4% 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 Powerchip Semiconductor Manufacturing and its competitors. For the Semiconductors industry, the median ROA % is 2.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Powerchip Semiconductor Manufacturing's current ROA % is 32.40%, which is 1132% above median its own 10-year median of 2.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powerchip Semiconductor Manufacturing stock overvalued right now?
Based on GuruFocus' analysis, Powerchip Semiconductor Manufacturing (TPE:6770) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$26.64, compared to a current price of NT$78.30 — trading 193.9% above its estimated fair value. The current ROA % is 32.40%, which is 1132% above median its 10-year median of 2.63 and 1222.4% above the Semiconductors industry median of 2.45. Powerchip Semiconductor Manufacturing's overall GF Score™ is 61/100 with 4 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 Powerchip Semiconductor Manufacturing (TPE:6770), the current ROA % is 32.40% as of Mar. 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 Powerchip Semiconductor Manufacturing (TPE:6770) Overvalued in 2026?
Based on GuruFocus' analysis, Powerchip Semiconductor Manufacturing stock appears to be overvalued.
The current stock price of NT$78.30 is trading 193.9% above its estimated GF Value™ of NT$26.64.
GuruFocus considers Powerchip Semiconductor Manufacturing to be Significantly Overvalued.
Key valuation signals for TPE:6770:
ROA %: 32.40% (1132% above median its 10-year median of 2.63)
GF Value™: NT$26.64 vs. price of NT$78.30 (193.9% above fair value)
Industry Position: 1222.4% above the Semiconductors median (#412 of 1028)
No single metric tells the full story. See the TPE:6770 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powerchip Semiconductor Manufacturing Business Description
Powerchip Semiconductor Manufacturing Corp is engaged in the business of manufacturing and distributing memory components. The company is engaged in research and development, manufacturing, testing, packaging, and selling integrated circuit products. The company produces power-integrated circuits, discrete components, image sensors, and other related products. Geographically, the company earns the majority of its revenue from Taiwan.
61GF Score
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