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West HoldingsTSE:1407 +1.30%77 ROA % is 1.56% as of Feb. 2026, which is 68% below its 10-year median of 4.83. GuruFocus rates TSE:1407 with a GF Score™ of 77/100 and a GF Value™ of 円2,487.85 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 449 Utilities - Independent Power Producers companies, West Holdings ranks better than 71.71% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. West Holdings's annualizedNet Income for the quarter that ended in Feb. 2026 was 円2,264 Mil.
West Holdings's average Total Assets over the quarter that ended in Feb. 2026 was 円144,717 Mil. Therefore, West Holdings's annualized ROA % for the quarter that ended in Feb. 2026 was 1.56%.
The historical rank and industry rank for West Holdings's ROA % or its related term are showing as below:
TSE:1407'
s ROA % Range Over the Past 10 Years
Min: 2.47 Med: 4.83 Max: 7.23
Current: 3.64
During the past 13 years, West Holdings's highest ROA % was 7.23%. The lowest was 2.47%. And the median was 4.83%.
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 (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 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.
West Holdings ROA % Related Terms
West Holdings ROA % Historical Data
* Premium members only.
The historical data trend for West Holdings'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 Utilities - Renewable subindustry, West Holdings'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.
West Holdings ROA % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, West Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where West Holdings'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 (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
West Holdings (TSE:1407) has a ROA % of 1.56% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on West Holdings and its competitors. This is 68% below median its historical median of 4.83. Over the past decade, West Holdings' ROA % has ranged from 2.47 to 7.23. According to the industry distribution chart, West Holdings ranks #127 out of 449 companies in the Utilities - Independent Power Producers industry, placing it in the top 28.3%.
Is West Holdings' ROA % too high?
West Holdings' current ROA % of 1.56% is 68% below median its 10-year median of 4.83. Over the past 10 years, this metric has ranged from a low of 2.47 to a high of 7.23. The Utilities - Independent Power Producers industry median ROA % is 1.21. West Holdings' value of 1.56% is 28.9% above this industry median. Based on the distribution chart, West Holdings ranks #127 out of 449 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, West Holdings has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does West Holdings' ROA % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, West Holdings ranks #127 out of 449 companies for ROA %. This puts West Holdings in the upper half of its industry. The industry median ROA % is 1.21. West Holdings' value of 1.56% is 28.9% above this benchmark. Historically, West Holdings' own ROA % has ranged from 2.47 to 7.23 over the past decade. While the company's 10-year median is 4.83 vs. the industry median of 1.21, West Holdings 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 Utilities - Independent Power Producers company?
The median ROA % among Utilities - Independent Power Producers companies is 1.21, based on 449 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. West Holdings's current ROA % of 1.56% is 28.9% 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 West Holdings and its competitors. For the Utilities - Independent Power Producers industry, the median ROA % is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Holdings's current ROA % is 1.56%, which is 68% below median its own 10-year median of 4.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is West Holdings stock overvalued right now?
Based on GuruFocus' analysis, West Holdings (TSE:1407) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,487.85, compared to a current price of 円2,179.00 — trading 12.4% below its estimated fair value. The current ROA % is 1.56%, which is 68% below median its 10-year median of 4.83 and 28.9% above the Utilities - Independent Power Producers industry median of 1.21. West Holdings' overall GF Score™ is 77/100 with 5 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 West Holdings (TSE:1407), the current ROA % is 1.56% as of Feb. 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 West Holdings (TSE:1407) Overvalued in 2026?
Based on GuruFocus' analysis, West Holdings stock appears to be undervalued.
The current stock price of 円2,179.00 is trading 12.4% below its estimated GF Value™ of 円2,487.85.
GuruFocus considers West Holdings to be Modestly Undervalued.
Key valuation signals for TSE:1407:
ROA %: 1.56% (68% below median its 10-year median of 4.83)
GF Value™: 円2,487.85 vs. price of 円2,179.00 (12.4% below fair value)
Industry Position: 28.9% above the Utilities - Independent Power Producers median (#127 of 449)
No single metric tells the full story. See the TSE:1407 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
West Holdings Corp is engaged in the solar power generation. The company generates solar power for municipalities, residential and industrial use. Its business activities are divided into different divisions including Stadtberg business, Solar power generation for municipalities, special high-pressure solar power generation, Industrial solar power generation, Residential solar power generation, O & M (operation and management), Sales of electricity and Esco Business. Stadtberg division provides consulting and operation support for infrastructure services centered on renewable energy. O & M division monitors the photovoltaic power plant and maintains the maximum amount of power generation. Its Esco division provides various energy-saving measures.
77GF Score
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