ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sumitomo Mitsui Construction Co's annualizedNet Income for the quarter that ended in Sep. 2025 was 円8,560 Mil.
Sumitomo Mitsui Construction Co's average Total Assets over the quarter that ended in Sep. 2025 was 円375,564 Mil. Therefore, Sumitomo Mitsui Construction Co's annualized ROA % for the quarter that ended in Sep. 2025 was 2.28%.
TSE:1821'
s ROA % Range Over the Past 10 Years
Min: -6.39 Med: 2.93 Max: 6.69
Current: 4.45
During the past 13 years, Sumitomo Mitsui Construction Co's highest ROA % was 6.69%. The lowest was -6.39%. And the median was 2.93%.
TSE:1821's ROA % is not ranked
in the Conglomerates industry.
Industry Median: 2.49
vs TSE:1821: 4.45
Sumitomo Mitsui Construction Co (TSE:1821) 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 (Sep. 2025) net income data. The Revenue data used here is four times the quarterly (Sep. 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.
Sumitomo Mitsui Construction Co ROA % Related Terms
Sumitomo Mitsui Construction 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 Conglomerates subindustry, Sumitomo Mitsui Construction 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.
Sumitomo Mitsui Construction Co ROA % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Sumitomo Mitsui Construction Co's ROA % distribution charts can be found below:
* The bar in red indicates where Sumitomo Mitsui Construction Co'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 (Sep. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Sumitomo Mitsui Construction Co (TSE:1821) has a ROA % of 2.28% as of Sep. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Sumitomo Mitsui Construction Co and its competitors. This is 22% below median its historical median of 2.93.
Is Sumitomo Mitsui Construction Co's ROA % too high?
Sumitomo Mitsui Construction Co's current ROA % of 2.28% is 22% below median its 10-year median of 2.93. The Conglomerates industry median ROA % is 2.49. Sumitomo Mitsui Construction Co's value of 2.28% is 8.4% below this industry median. Overall, Sumitomo Mitsui Construction Co has a GF Score™ of 47/100, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Mitsui Construction Co's ROA % compare to HON and MMM?
Sumitomo Mitsui Construction Co's ROA % of 2.28% can be compared against companies in the Conglomerates industry. The industry median ROA % is 2.49. Sumitomo Mitsui Construction Co's value of 2.28% is 8.4% below this benchmark. While the company's 10-year median is 2.93 vs. the industry median of 2.49, Sumitomo Mitsui Construction Co has consistently been below 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 Conglomerates company?
The median ROA % among Conglomerates companies is 2.49, based on 567 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. Sumitomo Mitsui Construction Co's current ROA % of 2.28% is 8.4% below 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 Sumitomo Mitsui Construction Co and its competitors. For the Conglomerates industry, the median ROA % is 2.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Mitsui Construction Co's current ROA % is 2.28%, which is 22% below median its own 10-year median of 2.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Mitsui Construction Co stock overvalued right now?
Sumitomo Mitsui Construction Co (TSE:1821) has a current ROA % of 2.28%. The stock's GF Value™ is 円380.71, compared to a current price of 円596.00 — trading 56.5% above its estimated fair value. The current ROA % is 2.28%, which is 22% below median its 10-year median of 2.93 and 8.4% below the Conglomerates industry median of 2.49. Sumitomo Mitsui Construction Co's overall GF Score™ is 47/100 with 10 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 Sumitomo Mitsui Construction Co (TSE:1821), the current ROA % is 2.28% as of Sep. 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 Sumitomo Mitsui Construction Co (TSE:1821) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Mitsui Construction Co stock appears to be overvalued.
The current stock price of 円596.00 is trading 56.5% above its estimated GF Value™ of 円380.71.
Key valuation signals for TSE:1821:
ROA %: 2.28% (22% below median its 10-year median of 2.93)
GF Value™: 円380.71 vs. price of 円596.00 (56.5% above fair value)
Industry Position: 8.4% below the Conglomerates median
No single metric tells the full story. See the TSE:1821 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Mitsui Construction Co Business Description
Sumitomo Mitsui Construction Co Ltd is a construction company based in Japan. The company is primarily engaged in designing, engineering and executing civil projects which mainly include skyscrapers and high-rise buildings. It uses various technologies, such as controllable wide wall column, inverted construction method, lead rubber isolator, flat lead plug rubber, and dustless shotcrete method to construct high rise buildings and tunnel branching. It also engages in real estate trading, leasing, and management services.
47GF Score
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