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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. SHANON's annualizedNet Income for the quarter that ended in Oct. 2025 was 円257 Mil.
SHANON's average Total Assets over the quarter that ended in Oct. 2025 was 円1,934 Mil. Therefore, SHANON's annualized ROA % for the quarter that ended in Oct. 2025 was 13.30%.
The historical rank and industry rank for SHANON's ROA % or its related term are showing as below:
TSE:3976'
s ROA % Range Over the Past 10 Years
Min: -31.51 Med: -0.32 Max: 9.21
Current: 9.21
During the past 12 years, SHANON's highest ROA % was 9.21%. The lowest was -31.51%. And the median was -0.32%.
TSE:3976's ROA % is ranked better than 79.76% of 2886
companies
in the Software industry
Industry Median: 1.68
vs TSE:3976: 9.21
SHANON (TSE:3976) 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 (Oct. 2025) net income data. The Revenue data used here is four times the quarterly (Oct. 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.
SHANON ROA % Related Terms
SHANON ROA % Historical Data
* Premium members only.
The historical data trend for SHANON'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 - Application subindustry, SHANON'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.
SHANON ROA % vs Software Industry
For the Software industry and Technology sector, SHANON's ROA % distribution charts can be found below:
* The bar in red indicates where SHANON'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 (Oct. 2025) net income data.
ROA % is displayed in the 30-year financial page.
SHANON (TSE:3976) has a ROA % of 13.30% as of Oct. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on SHANON and its competitors. According to the industry distribution chart, SHANON ranks #584 out of 2886 companies in the Software industry, placing it in the top 20.2%.
Is SHANON's ROA % too high?
SHANON's current ROA % is 13.30%. The Software industry median ROA % is 1.68. SHANON's value of 13.30% is 691.7% above this industry median. Based on the distribution chart, SHANON ranks #584 out of 2886 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SHANON has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SHANON's ROA % compare to UBER and SHOP?
According to the Software industry distribution chart, SHANON ranks #584 out of 2886 companies for ROA %. This places SHANON in the top 20% of its industry — outperforming the majority of peers. The industry median ROA % is 1.68. SHANON's value of 13.30% is 691.7% above this benchmark. 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 1.68, based on 2,886 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. SHANON's current ROA % of 13.30% is 691.7% 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 SHANON and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SHANON's current ROA % is 13.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SHANON stock overvalued right now?
Based on GuruFocus' analysis, SHANON (TSE:3976) is currently considered Significantly Overvalued. The stock's GF Value™ is 円230.27, compared to a current price of 円567.00 — trading 146.2% above its estimated fair value. The current ROA % is 13.30% and 691.7% above the Software industry median of 1.68. SHANON's overall GF Score™ is 51/100 with 6 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 SHANON (TSE:3976), the current ROA % is 13.30% as of Oct. 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 SHANON (TSE:3976) Overvalued in 2026?
Based on GuruFocus' analysis, SHANON stock appears to be overvalued.
The current stock price of 円567.00 is trading 146.2% above its estimated GF Value™ of 円230.27.
GuruFocus considers SHANON to be Significantly Overvalued.
Key valuation signals for TSE:3976:
ROA %: 13.30%
GF Value™: 円230.27 vs. price of 円567.00 (146.2% above fair value)
Industry Position: 691.7% above the Software median (#584 of 2886)
No single metric tells the full story. See the TSE:3976 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SHANON Inc provides marketing platform and cloud application. It is engaged in the planning, development, and sale of cloud marketing solutions. It is also engaged in the provision of consulting and outsourcing services related to marketing.
51GF Score
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