Digital ArtsTSE:2326 +0.27%79 ROA % is 16.99% as of Mar. 2026, which is 4% above its 10-year median of 16.34. GuruFocus rates TSE:2326 with a GF Score™ of 79/100 and a GF Value™ of 円6,219.31 (Significantly Undervalued). Among 2,882 Software companies, Digital Arts ranks better than 90.87% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Digital Arts's annualizedNet Income for the quarter that ended in Mar. 2026 was 円4,396 Mil.
Digital Arts's average Total Assets over the quarter that ended in Mar. 2026 was 円25,871 Mil. Therefore, Digital Arts's annualized ROA % for the quarter that ended in Mar. 2026 was 16.99%.
The historical rank and industry rank for Digital Arts's ROA % or its related term are showing as below:
TSE:2326'
s ROA % Range Over the Past 10 Years
Min: 13.57 Med: 16.34 Max: 22.05
Current: 14.2
During the past 13 years, Digital Arts's highest ROA % was 22.05%. The lowest was 13.57%. And the median was 16.34%.
TSE:2326's ROA % is ranked better than 90.87% of 2882
companies
in the Software industry
Industry Median: 1.66
vs TSE:2326: 14.20
Digital Arts (TSE:2326) 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 (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.
Digital Arts ROA % Related Terms
Digital Arts ROA % Historical Data
* Premium members only.
The historical data trend for Digital Arts'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 Software - Infrastructure subindustry, Digital Arts'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.
Digital Arts ROA % vs Software Industry
For the Software industry and Technology sector, Digital Arts's ROA % distribution charts can be found below:
* The bar in red indicates where Digital Arts'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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Digital Arts (TSE:2326) has a ROA % of 16.99% 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 Digital Arts and its competitors. This is near median its historical median of 16.34. Over the past decade, Digital Arts' ROA % has ranged from 13.57 to 22.05. According to the industry distribution chart, Digital Arts ranks #263 out of 2882 companies in the Software industry, placing it in the top 9.1%.
Is Digital Arts' ROA % too high?
Digital Arts' current ROA % of 16.99% is near median its 10-year median of 16.34. Over the past 10 years, this metric has ranged from a low of 13.57 to a high of 22.05. The Software industry median ROA % is 1.66. Digital Arts' value of 16.99% is 923.5% above this industry median. Based on the distribution chart, Digital Arts ranks #263 out of 2882 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Digital Arts has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Arts' ROA % compare to MSFT and ORCL?
According to the Software industry distribution chart, Digital Arts ranks #263 out of 2882 companies for ROA %. This places Digital Arts in the top 9% of its industry — outperforming the majority of peers. The industry median ROA % is 1.66. Digital Arts' value of 16.99% is 923.5% above this benchmark. Historically, Digital Arts' own ROA % has ranged from 13.57 to 22.05 over the past decade. While the company's 10-year median is 16.34 vs. the industry median of 1.66, Digital Arts 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 Software company?
The median ROA % among Software companies is 1.66, based on 2,882 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. Digital Arts's current ROA % of 16.99% is 923.5% 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 Digital Arts and its competitors. For the Software industry, the median ROA % is 1.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Arts's current ROA % is 16.99%, which is near median its own 10-year median of 16.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Arts stock overvalued right now?
Based on GuruFocus' analysis, Digital Arts (TSE:2326) is currently considered Significantly Undervalued. The stock's GF Value™ is 円6,219.31, compared to a current price of 円3,705.00 — trading 40.4% below its estimated fair value. The current ROA % is 16.99%, which is near median its 10-year median of 16.34 and 923.5% above the Software industry median of 1.66. Digital Arts' overall GF Score™ is 79/100. 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 Digital Arts (TSE:2326), the current ROA % is 16.99% 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 Digital Arts (TSE:2326) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Arts stock appears to be undervalued.
The current stock price of 円3,705.00 is trading 40.4% below its estimated GF Value™ of 円6,219.31.
GuruFocus considers Digital Arts to be Significantly Undervalued.
Key valuation signals for TSE:2326:
ROA %: 16.99% (near median its 10-year median of 16.34)
GF Value™: 円6,219.31 vs. price of 円3,705.00 (40.4% below fair value)
Industry Position: 923.5% above the Software median (#263 of 2882)
No single metric tells the full story. See the TSE:2326 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Arts Inc develops Internet filtering software for business, private, and educational use. Its products protect users and networks from harmful Internet content and prevent inappropriate usage. Its software products are supplied to the corporate, public-sector (government ministries and agencies and schools), and consumer markets.
79GF Score
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