Nippon Soda CoTSE:4041 +0.70%76 ROA % is 7.61% as of Mar. 2026, which is 65% above its 10-year median of 4.60. GuruFocus rates TSE:4041 with a GF Score™ of 76/100 and a GF Value™ of 円2,840.63 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,614 Chemicals companies, Nippon Soda Co ranks better than 73.54% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nippon Soda Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円23,340 Mil.
Nippon Soda Co's average Total Assets over the quarter that ended in Mar. 2026 was 円306,718 Mil. Therefore, Nippon Soda Co's annualized ROA % for the quarter that ended in Mar. 2026 was 7.61%.
The historical rank and industry rank for Nippon Soda Co's ROA % or its related term are showing as below:
TSE:4041'
s ROA % Range Over the Past 10 Years
Min: 2.66 Med: 4.6 Max: 6.72
Current: 6.17
During the past 13 years, Nippon Soda Co's highest ROA % was 6.72%. The lowest was 2.66%. And the median was 4.60%.
TSE:4041's ROA % is ranked better than 73.54% of 1614
companies
in the Chemicals industry
Industry Median: 2.9
vs TSE:4041: 6.17
Nippon Soda Co (TSE:4041) 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.
Nippon Soda Co ROA % Related Terms
Nippon Soda Co ROA % Historical Data
* Premium members only.
The historical data trend for Nippon Soda 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.
For the Chemicals subindustry, Nippon Soda 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.
Nippon Soda Co ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Soda Co's ROA % distribution charts can be found below:
* The bar in red indicates where Nippon Soda 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Nippon Soda Co (TSE:4041) has a ROA % of 7.61% 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 Nippon Soda Co and its competitors. This is 65% above median its historical median of 4.60. Over the past decade, Nippon Soda Co's ROA % has ranged from 2.66 to 6.72. According to the industry distribution chart, Nippon Soda Co ranks #427 out of 1614 companies in the Chemicals industry, placing it in the top 26.5%.
Is Nippon Soda Co's ROA % too high?
Nippon Soda Co's current ROA % of 7.61% is 65% above median its 10-year median of 4.60. Over the past 10 years, this metric has ranged from a low of 2.66 to a high of 6.72. The Chemicals industry median ROA % is 2.90. Nippon Soda Co's value of 7.61% is 162.4% above this industry median. Based on the distribution chart, Nippon Soda Co ranks #427 out of 1614 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Soda Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Soda Co's ROA % compare to DOW?
According to the Chemicals industry distribution chart, Nippon Soda Co ranks #427 out of 1614 companies for ROA %. This puts Nippon Soda Co in the upper half of its industry. The industry median ROA % is 2.90. Nippon Soda Co's value of 7.61% is 162.4% above this benchmark. Historically, Nippon Soda Co's own ROA % has ranged from 2.66 to 6.72 over the past decade. While the company's 10-year median is 4.60 vs. the industry median of 2.90, Nippon Soda 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 2.90, based on 1,614 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. Nippon Soda Co's current ROA % of 7.61% is 162.4% 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 Nippon Soda Co and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Soda Co's current ROA % is 7.61%, which is 65% above median its own 10-year median of 4.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Soda Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Soda Co (TSE:4041) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,840.63, compared to a current price of 円3,580.00 — trading 26% above its estimated fair value. The current ROA % is 7.61%, which is 65% above median its 10-year median of 4.60 and 162.4% above the Chemicals industry median of 2.90. Nippon Soda Co's overall GF Score™ is 76/100 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 Nippon Soda Co (TSE:4041), the current ROA % is 7.61% 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 Nippon Soda Co (TSE:4041) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Soda Co stock appears to be overvalued.
The current stock price of 円3,580.00 is trading 26% above its estimated GF Value™ of 円2,840.63.
GuruFocus considers Nippon Soda Co to be Modestly Overvalued.
Key valuation signals for TSE:4041:
ROA %: 7.61% (65% above median its 10-year median of 4.60)
GF Value™: 円2,840.63 vs. price of 円3,580.00 (26% above fair value)
Industry Position: 162.4% above the Chemicals median (#427 of 1614)
No single metric tells the full story. See the TSE:4041 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Soda Co Ltd manufactures and sells chemical products and operates in three major and three minor segments. The chemicals segment sells caustic soda, sodium derivatives, and specialty chemicals, which are used to make household cleaning products and pharmaceuticals. The agrochemicals segment sells pesticides, fungicides, and herbicides to the agricultural industry. The trading segment offers chemicals, synthetic resins, and industrial machineries and devices. The company generates additional revenue from its minor segments: transportation, warehousing, and construction services. These segments are engaged in the transportation and warehousing of chemical products, as well as in plant construction and civil engineering services.
76GF Score
Get the complete analysis for TSE:4041
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4041 has been successfully added to your 
