Sumitomo Seika Chemicals Co (TSE:4008) ROA %: 7.10% (As of Mar. 2026) — 37% Above Median

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TSE:4008 Sumitomo Seika Chemicals Co Ltd TSE:4008
74 GF Score
Price 円1,297.00
GF Value 円1,055.61
Valuation Modestly Overvalued
! 3 Warning Signs
View Full Analysis

What is Sumitomo Seika Chemicals Co ROA %?

Sumitomo Seika Chemicals Co TSE:4008 +0.86% 74 ROA % is 7.10% as of Mar. 2026, which is 37% above its 10-year median of 5.19. GuruFocus rates TSE:4008 with a GF Score™ of 74/100 and a GF Value™ of 円1,055.61 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,612 Chemicals companies, Sumitomo Seika Chemicals Co ranks better than 68.42% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sumitomo Seika Chemicals Co's annualized Net Income for the quarter that ended in Mar. 2026 was 円10,772 Mil. Sumitomo Seika Chemicals Co's average Total Assets over the quarter that ended in Mar. 2026 was 円151,648 Mil. Therefore, Sumitomo Seika Chemicals Co's annualized ROA % for the quarter that ended in Mar. 2026 was 7.10%.

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

TSE:4008' s ROA % Range Over the Past 10 Years
Min: 0.56   Med: 5.19   Max: 6.93
Current: 5.27

During the past 13 years, Sumitomo Seika Chemicals Co's highest ROA % was 6.93%. The lowest was 0.56%. And the median was 5.19%.

TSE:4008's ROA % is ranked better than
68.42% of 1612 companies
in the Chemicals industry
Industry Median: 2.915 vs TSE:4008: 5.27

Sumitomo Seika Chemicals Co  (TSE:4008) 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: Mar. 2026 )
=Net Income/Total Assets
=10772/151648
=(Net Income / Revenue)*(Revenue / Total Assets)
=(10772 / 146748)*(146748 / 151648)
=Net Margin %*Asset Turnover
=7.34 %*0.9677
=7.10 %

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.


Sumitomo Seika Chemicals Co ROA % Related Terms


Sumitomo Seika Chemicals Co ROA % Historical Data

* Premium members only.

The historical data trend for Sumitomo Seika Chemicals 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.

Sumitomo Seika Chemicals Co ROA % Chart

Sumitomo Seika Chemicals Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.15 6.93 4.69 4.29 5.22

Sumitomo Seika Chemicals Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 -2.59 2.96 6.28 4.66 7.10

TSE:4008 vs LIN, SHW, ECL: ROA % Comparison

For the Specialty Chemicals subindustry, Sumitomo Seika Chemicals 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 Seika Chemicals Co ROA % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sumitomo Seika Chemicals Co's ROA % distribution charts can be found below:

* The bar in red indicates where Sumitomo Seika Chemicals Co's ROA % falls into.


TSE:4008
74GF Score
Sumitomo Seika Chemicals Co Ltd TSE:4008
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sumitomo Seika Chemicals Co ROA % Calculation

Sumitomo Seika Chemicals Co's annualized ROA % for the fiscal year that ended in Mar. 2026 is calculated as:

ROA %=Net Income (A: Mar. 2026 )/( (Total Assets (A: Mar. 2025 )+Total Assets (A: Mar. 2026 ))/ count )
=7677/( (141532+152732)/ 2 )
=7677/147132
=5.22 %

Sumitomo Seika Chemicals Co's annualized ROA % for the quarter that ended in Mar. 2026 is calculated as:

ROA %=Net Income (Q: Mar. 2026 )/( (Total Assets (Q: Dec. 2025 )+Total Assets (Q: Mar. 2026 ))/ count )
=10772/( (150564+152732)/ 2 )
=10772/151648
=7.10 %

* 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.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 7.10% mean?
Sumitomo Seika Chemicals Co (TSE:4008) has a ROA % of 7.10% 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 Sumitomo Seika Chemicals Co and its competitors. This is 37% above median its historical median of 5.19. Over the past decade, Sumitomo Seika Chemicals Co's ROA % has ranged from 0.56 to 6.93. According to the industry distribution chart, Sumitomo Seika Chemicals Co ranks #509 out of 1612 companies in the Chemicals industry, placing it in the top 31.6%.
Is Sumitomo Seika Chemicals Co's ROA % too high?
Sumitomo Seika Chemicals Co's current ROA % of 7.10% is 37% above median its 10-year median of 5.19. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 6.93. The Chemicals industry median ROA % is 2.92. Sumitomo Seika Chemicals Co's value of 7.10% is 143.6% above this industry median. Based on the distribution chart, Sumitomo Seika Chemicals Co ranks #509 out of 1612 companies in the Chemicals industry, which is above the industry midpoint. Overall, Sumitomo Seika Chemicals Co has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Seika Chemicals Co's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sumitomo Seika Chemicals Co ranks #509 out of 1612 companies for ROA %. This puts Sumitomo Seika Chemicals Co in the upper half of its industry. The industry median ROA % is 2.92. Sumitomo Seika Chemicals Co's value of 7.10% is 143.6% above this benchmark. Historically, Sumitomo Seika Chemicals Co's own ROA % has ranged from 0.56 to 6.93 over the past decade. While the company's 10-year median is 5.19 vs. the industry median of 2.92, Sumitomo Seika Chemicals 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 Chemicals company?
The median ROA % among Chemicals companies is 2.92, based on 1,612 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 Seika Chemicals Co's current ROA % of 7.10% is 143.6% 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 Sumitomo Seika Chemicals Co and its competitors. For the Chemicals industry, the median ROA % is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Seika Chemicals Co's current ROA % is 7.10%, which is 37% above median its own 10-year median of 5.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Seika Chemicals Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Seika Chemicals Co (TSE:4008) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,055.61, compared to a current price of 円1,297.00 — trading 22.9% above its estimated fair value. The current ROA % is 7.10%, which is 37% above median its 10-year median of 5.19 and 143.6% above the Chemicals industry median of 2.92. Sumitomo Seika Chemicals Co's overall GF Score™ is 74/100 with 3 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 Seika Chemicals Co (TSE:4008), the current ROA % is 7.10% 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 Sumitomo Seika Chemicals Co (TSE:4008) Overvalued in 2026?

Based on GuruFocus' analysis, Sumitomo Seika Chemicals Co stock appears to be overvalued. The current stock price of 円1,297.00 is trading 22.9% above its estimated GF Value™ of 円1,055.61. GuruFocus considers Sumitomo Seika Chemicals Co to be Modestly Overvalued.

Key valuation signals for TSE:4008:

  • ROA %: 7.10% (37% above median its 10-year median of 5.19)
  • GF Value™: 円1,055.61 vs. price of 円1,297.00 (22.9% above fair value)
  • GF Score™: 74/100 with 3 warning signs
  • Industry Position: 143.6% above the Chemicals median (#509 of 1612)

No single metric tells the full story. See the TSE:4008 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sumitomo Seika Chemicals Co Business Description

Address 1-13-5 Kudankita, Chiyoda-ku, Tokyo, JPN, 102-0073
Sumitomo Seika Chemicals Co Ltd manufactures and sells chemicals and chemical-based products in three segments based on product type. The superabsorbent-polymers segment, which generates the majority of revenue, sells diapers, sanitary napkins, water repellent tape for power and optical cables, and sodium polyacrylate products used as a water-retention agent for agricultural and horticultural use. The chemicals segment sells plastic polymers, latex, and chemical additives used in the production of lithium-ion batteries and pharmaceuticals. The gases segment sells gases for industrial use, which includes electronics production, as well as aerosol propellant gas and nitrous oxide.
74GF Score

Get the complete analysis for TSE:4008

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

円1,297.00
Price
円1,055.61
GF Value