Cluster Technology CoTSE:4240 -0.63%78 ROA % is 2.08% as of Mar. 2026, which is 35% below its 10-year median of 3.20. GuruFocus rates TSE:4240 with a GF Score™ of 78/100 and a GF Value™ of 円426.16 (Modestly Undervalued). Among 2,502 Hardware companies, Cluster Technology Co ranks better than 76.22% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Cluster Technology Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円42 Mil.
Cluster Technology Co's average Total Assets over the quarter that ended in Mar. 2026 was 円1,998 Mil. Therefore, Cluster Technology Co's annualized ROA % for the quarter that ended in Mar. 2026 was 2.08%.
The historical rank and industry rank for Cluster Technology Co's ROA % or its related term are showing as below:
TSE:4240'
s ROA % Range Over the Past 10 Years
Min: -4.34 Med: 3.2 Max: 7.4
Current: 6.45
During the past 13 years, Cluster Technology Co's highest ROA % was 7.40%. The lowest was -4.34%. And the median was 3.20%.
TSE:4240's ROA % is ranked better than 76.22% of 2502
companies
in the Hardware industry
Industry Median: 2.265
vs TSE:4240: 6.45
Cluster Technology Co (TSE:4240) 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 two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
* 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 Electronic Components subindustry, Cluster Technology 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.
Cluster Technology Co ROA % vs Hardware Industry
For the Hardware industry and Technology sector, Cluster Technology Co's ROA % distribution charts can be found below:
* The bar in red indicates where Cluster Technology 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 two times the semi-annual (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Cluster Technology Co (TSE:4240) has a ROA % of 2.08% 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 Cluster Technology Co and its competitors. This is 35% below median its historical median of 3.20. According to the industry distribution chart, Cluster Technology Co ranks #595 out of 2502 companies in the Hardware industry, placing it in the top 23.8%.
Is Cluster Technology Co's ROA % too high?
Cluster Technology Co's current ROA % of 2.08% is 35% below median its 10-year median of 3.20. The Hardware industry median ROA % is 2.27. Cluster Technology Co's value of 2.08% is 8.2% below this industry median. Based on the distribution chart, Cluster Technology Co ranks #595 out of 2502 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Cluster Technology Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cluster Technology Co's ROA % compare to APH and GLW?
According to the Hardware industry distribution chart, Cluster Technology Co ranks #595 out of 2502 companies for ROA %. This places Cluster Technology Co in the top 24% of its industry — outperforming the majority of peers. The industry median ROA % is 2.27. Cluster Technology Co's value of 2.08% is 8.2% below this benchmark. While the company's 10-year median is 3.20 vs. the industry median of 2.27, Cluster Technology 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 a Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,502 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. Cluster Technology Co's current ROA % of 2.08% is 8.2% 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 Cluster Technology Co and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cluster Technology Co's current ROA % is 2.08%, which is 35% below median its own 10-year median of 3.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cluster Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Cluster Technology Co (TSE:4240) is currently considered Modestly Undervalued. The stock's GF Value™ is 円426.16, compared to a current price of 円313.00 — trading 26.6% below its estimated fair value. The current ROA % is 2.08%, which is 35% below median its 10-year median of 3.20 and 8.2% below the Hardware industry median of 2.27. Cluster Technology Co's overall GF Score™ is 78/100. 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 Cluster Technology Co (TSE:4240), the current ROA % is 2.08% 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 Cluster Technology Co (TSE:4240) Overvalued in 2026?
Based on GuruFocus' analysis, Cluster Technology Co stock appears to be undervalued.
The current stock price of 円313.00 is trading 26.6% below its estimated GF Value™ of 円426.16.
GuruFocus considers Cluster Technology Co to be Modestly Undervalued.
Key valuation signals for TSE:4240:
ROA %: 2.08% (35% below median its 10-year median of 3.20)
GF Value™: 円426.16 vs. price of 円313.00 (26.6% below fair value)
Industry Position: 8.2% below the Hardware median (#595 of 2502)
No single metric tells the full story. See the TSE:4240 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cluster Technology Co Ltd develops and manufactures composite materials and Nano-micromachining including metal mold making. It also manufactures and sale molding dies, plastic molding materials. Its nanotechnology/microtechnology business products include sensor holders for autofocus of digital single lens reflex cameras, peripheral parts of image sensors, base parts of inkjet heads.
78GF Score
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