Nichiban CoTSE:4218 -1.11%73 ROA % is 2.28% as of Mar. 2026, which is 22% below its 10-year median of 2.91. GuruFocus rates TSE:4218 with a GF Score™ of 73/100 and a GF Value™ of 円2,046.76 (Fairly Valued). The stock has 4 warning signs investors should review. Among 3,074 Industrial Products companies, Nichiban Co ranks worse than 54.72% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nichiban Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円1,544 Mil.
Nichiban Co's average Total Assets over the quarter that ended in Mar. 2026 was 円67,697 Mil. Therefore, Nichiban Co's annualized ROA % for the quarter that ended in Mar. 2026 was 2.28%.
The historical rank and industry rank for Nichiban Co's ROA % or its related term are showing as below:
TSE:4218'
s ROA % Range Over the Past 10 Years
Min: 2.23 Med: 2.91 Max: 5.7
Current: 2.45
During the past 13 years, Nichiban Co's highest ROA % was 5.70%. The lowest was 2.23%. And the median was 2.91%.
TSE:4218's ROA % is ranked worse than 54.72% of 3074
companies
in the Industrial Products industry
Industry Median: 3.045
vs TSE:4218: 2.45
Nichiban Co (TSE:4218) 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.
Nichiban Co ROA % Related Terms
Nichiban Co ROA % Historical Data
* Premium members only.
The historical data trend for Nichiban 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 Business Equipment & Supplies subindustry, Nichiban 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.
Nichiban Co ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nichiban Co's ROA % distribution charts can be found below:
* The bar in red indicates where Nichiban 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.
Nichiban Co (TSE:4218) has a ROA % of 2.28% 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 Nichiban Co and its competitors. This is 22% below median its historical median of 2.91. Over the past decade, Nichiban Co's ROA % has ranged from 2.23 to 5.70. According to the industry distribution chart, Nichiban Co ranks #1682 out of 3074 companies in the Industrial Products industry, placing it in the top 54.7%.
Is Nichiban Co's ROA % too high?
Nichiban Co's current ROA % of 2.28% is 22% below median its 10-year median of 2.91. Over the past 10 years, this metric has ranged from a low of 2.23 to a high of 5.70. The Industrial Products industry median ROA % is 3.05. Nichiban Co's value of 2.28% is 25.1% below this industry median. Based on the distribution chart, Nichiban Co ranks #1682 out of 3074 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Nichiban Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nichiban Co's ROA % compare to competitors?
According to the Industrial Products industry distribution chart, Nichiban Co ranks #1682 out of 3074 companies for ROA %. This places Nichiban Co in the lower half of its industry. The industry median ROA % is 3.05. Nichiban Co's value of 2.28% is 25.1% below this benchmark. Historically, Nichiban Co's own ROA % has ranged from 2.23 to 5.70 over the past decade. While the company's 10-year median is 2.91 vs. the industry median of 3.05, Nichiban Co has consistently been below 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.05, based on 3,074 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. Nichiban Co's current ROA % of 2.28% is 25.1% below 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 Nichiban Co and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nichiban Co's current ROA % is 2.28%, which is 22% below median its own 10-year median of 2.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nichiban Co stock overvalued right now?
Based on GuruFocus' analysis, Nichiban Co (TSE:4218) is currently considered Fairly Valued. The stock's GF Value™ is 円2,046.76, compared to a current price of 円1,873.00 — trading 8.5% below its estimated fair value. The current ROA % is 2.28%, which is 22% below median its 10-year median of 2.91 and 25.1% below the Industrial Products industry median of 3.05. Nichiban Co's overall GF Score™ is 73/100 with 4 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 Nichiban Co (TSE:4218), the current ROA % is 2.28% 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 Nichiban Co (TSE:4218) Overvalued in 2026?
Based on GuruFocus' analysis, Nichiban Co stock appears to be undervalued.
The current stock price of 円1,873.00 is trading 8.5% below its estimated GF Value™ of 円2,046.76.
GuruFocus considers Nichiban Co to be Fairly Valued.
Key valuation signals for TSE:4218:
ROA %: 2.28% (22% below median its 10-year median of 2.91)
GF Value™: 円2,046.76 vs. price of 円1,873.00 (8.5% below fair value)
Industry Position: 25.1% below the Industrial Products median (#1682 of 3074)
No single metric tells the full story. See the TSE:4218 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nichiban Co Ltd is a Japan based company engaged in the business of manufacturing and selling products in the field of medical supplies, healthcare, industrial products and industrial products. It offers hemostatic solutions, wound care dressing and surgical tapes, industrial products for manufacturing and distribution and automotive industry, stationery products, TDS pharmaceutical pain relief plaster and foot care products, sports medical battlewin taping tape and first aid bandage.
73GF Score
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