Halows Co (TSE:2742) ROA %: 7.83% (As of Feb. 2026) — 19% Above Median

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TSE:2742 Halows Co Ltd TSE:2742
72 GF Score
Price 円3,695.00
GF Value 円5,053.57
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Halows Co ROA %?

Halows Co TSE:2742 -0.14% 72 ROA % is 7.83% as of Feb. 2026, which is 19% above its 10-year median of 6.60. GuruFocus rates TSE:2742 with a GF Score™ of 72/100 and a GF Value™ of 円5,053.57 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 312 Retail - Defensive companies, Halows Co ranks better than 73.08% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Halows Co's annualized Net Income for the quarter that ended in Feb. 2026 was 円10,448 Mil. Halows Co's average Total Assets over the quarter that ended in Feb. 2026 was 円133,435 Mil. Therefore, Halows Co's annualized ROA % for the quarter that ended in Feb. 2026 was 7.83%.

The historical rank and industry rank for Halows Co's ROA % or its related term are showing as below:

TSE:2742' s ROA % Range Over the Past 10 Years
Min: 5.03   Med: 6.6   Max: 8.44
Current: 6.67

During the past 13 years, Halows Co's highest ROA % was 8.44%. The lowest was 5.03%. And the median was 6.60%.

TSE:2742's ROA % is ranked better than
73.08% of 312 companies
in the Retail - Defensive industry
Industry Median: 3.52 vs TSE:2742: 6.67

Halows Co  (TSE:2742) 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 bank’s 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:

ROA %(Q: Feb. 2026 )
=Net Income/Total Assets
=10448/133435
=(Net Income / Revenue)*(Revenue / Total Assets)
=(10448 / 233324)*(233324 / 133435)
=Net Margin %*Asset Turnover
=4.48 %*1.7486
=7.83 %

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.


Halows Co ROA % Related Terms


Halows Co ROA % Historical Data

* Premium members only.

The historical data trend for Halows Co'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.

Halows Co ROA % Chart

Halows Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.66 6.65 8.44 8.21 7.22

Halows Co Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.15 6.05 6.95 7.83 5.79

TSE:2742 vs KR: ROA % Comparison

For the Grocery Stores subindustry, Halows 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.


Halows Co ROA % vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Halows Co's ROA % distribution charts can be found below:

* The bar in red indicates where Halows Co's ROA % falls into.


TSE:2742
72GF Score
Halows Co Ltd TSE:2742
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Halows Co ROA % Calculation

Halows Co's annualized ROA % for the fiscal year that ended in Feb. 2026 is calculated as:

ROA %=Net Income (A: Feb. 2026 )/( (Total Assets (A: Feb. 2025 )+Total Assets (A: Feb. 2026 ))/ count )
=8987/( (112869+136010)/ 2 )
=8987/124439.5
=7.22 %

Halows Co's annualized ROA % for the quarter that ended in Feb. 2026 is calculated as:

ROA %=Net Income (Q: Feb. 2026 )/( (Total Assets (Q: Nov. 2025 )+Total Assets (Q: Feb. 2026 ))/ count )
=10448/( (130860+136010)/ 2 )
=10448/133435
=7.83 %

* 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.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 7.83% mean?
Halows Co (TSE:2742) has a ROA % of 7.83% 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 Halows Co and its competitors. This is 19% above median its historical median of 6.60. Over the past decade, Halows Co's ROA % has ranged from 5.03 to 8.44. According to the industry distribution chart, Halows Co ranks #84 out of 312 companies in the Retail - Defensive industry, placing it in the top 26.9%.
Is Halows Co's ROA % too high?
Halows Co's current ROA % of 7.83% is 19% above median its 10-year median of 6.60. Over the past 10 years, this metric has ranged from a low of 5.03 to a high of 8.44. The Retail - Defensive industry median ROA % is 3.52. Halows Co's value of 7.83% is 122.4% above this industry median. Based on the distribution chart, Halows Co ranks #84 out of 312 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Halows Co has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Halows Co's ROA % compare to KR?
According to the Retail - Defensive industry distribution chart, Halows Co ranks #84 out of 312 companies for ROA %. This puts Halows Co in the upper half of its industry. The industry median ROA % is 3.52. Halows Co's value of 7.83% is 122.4% above this benchmark. Historically, Halows Co's own ROA % has ranged from 5.03 to 8.44 over the past decade. While the company's 10-year median is 6.60 vs. the industry median of 3.52, Halows 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 Retail - Defensive company?
The median ROA % among Retail - Defensive companies is 3.52, based on 312 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. Halows Co's current ROA % of 7.83% is 122.4% 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 Halows Co and its competitors. For the Retail - Defensive industry, the median ROA % is 3.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Halows Co's current ROA % is 7.83%, which is 19% above median its own 10-year median of 6.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Halows Co stock overvalued right now?
Based on GuruFocus' analysis, Halows Co (TSE:2742) is currently considered Modestly Undervalued. The stock's GF Value™ is 円5,053.57, compared to a current price of 円3,695.00 — trading 26.9% below its estimated fair value. The current ROA % is 7.83%, which is 19% above median its 10-year median of 6.60 and 122.4% above the Retail - Defensive industry median of 3.52. Halows Co's overall GF Score™ is 72/100 with 2 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 Halows Co (TSE:2742), the current ROA % is 7.83% 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 Halows Co (TSE:2742) Overvalued in 2026?

Based on GuruFocus' analysis, Halows Co stock appears to be undervalued. The current stock price of 円3,695.00 is trading 26.9% below its estimated GF Value™ of 円5,053.57. GuruFocus considers Halows Co to be Modestly Undervalued.

Key valuation signals for TSE:2742:

  • ROA %: 7.83% (19% above median its 10-year median of 6.60)
  • GF Value™: 円5,053.57 vs. price of 円3,695.00 (26.9% below fair value)
  • GF Score™: 72/100 with 2 warning signs
  • Industry Position: 122.4% above the Retail - Defensive median (#84 of 312)

No single metric tells the full story. See the TSE:2742 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Halows Co Business Description

Address 3270 Hayashima, Hayashima-cho, Tsukubo-gun, Okayama, JPN, 701-0393
Halows Co Ltd operates food supermarket chain stores in Hiroshima and Okayama Prefectures. Its stores are open 24 hours a day.
72GF Score

Get the complete analysis for TSE:2742

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円3,695.00
Price
円5,053.57
GF Value