ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Toho Chemical Industry Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円2,010 Mil.
Toho Chemical Industry Co's average Total Assets over the quarter that ended in Mar. 2026 was 円69,561 Mil. Therefore, Toho Chemical Industry Co's annualized ROA % for the quarter that ended in Mar. 2026 was 2.89%.
The historical rank and industry rank for Toho Chemical Industry Co's ROA % or its related term are showing as below:
TSE:4409'
s ROA % Range Over the Past 10 Years
Min: 0.69 Med: 2.14 Max: 3.73
Current: 2.21
During the past 13 years, Toho Chemical Industry Co's highest ROA % was 3.73%. The lowest was 0.69%. And the median was 2.14%.
TSE:4409's ROA % is ranked worse than 56.13% of 1614
companies
in the Chemicals industry
Industry Median: 2.9
vs TSE:4409: 2.21
Toho Chemical Industry Co (TSE:4409) 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 Specialty Chemicals subindustry, Toho Chemical Industry 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.
Toho Chemical Industry Co ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Toho Chemical Industry Co's ROA % distribution charts can be found below:
* The bar in red indicates where Toho Chemical Industry 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.
Toho Chemical Industry Co (TSE:4409) has a ROA % of 2.89% 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 Toho Chemical Industry Co and its competitors. This is 35% above median its historical median of 2.14. Over the past decade, Toho Chemical Industry Co's ROA % has ranged from 0.69 to 3.73. According to the industry distribution chart, Toho Chemical Industry Co ranks #906 out of 1614 companies in the Chemicals industry, placing it in the top 56.1%.
Is Toho Chemical Industry Co's ROA % too high?
Toho Chemical Industry Co's current ROA % of 2.89% is 35% above median its 10-year median of 2.14. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 3.73. The Chemicals industry median ROA % is 2.90. Toho Chemical Industry Co's value of 2.89% is 0.3% below this industry median. Based on the distribution chart, Toho Chemical Industry Co ranks #906 out of 1614 companies in the Chemicals industry, which is below the industry midpoint. Overall, Toho Chemical Industry Co has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toho Chemical Industry Co's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Toho Chemical Industry Co ranks #906 out of 1614 companies for ROA %. This places Toho Chemical Industry Co in the lower half of its industry. The industry median ROA % is 2.90. Toho Chemical Industry Co's value of 2.89% is 0.3% below this benchmark. Historically, Toho Chemical Industry Co's own ROA % has ranged from 0.69 to 3.73 over the past decade. While the company's 10-year median is 2.14 vs. the industry median of 2.90, Toho Chemical Industry 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 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. Toho Chemical Industry Co's current ROA % of 2.89% is 0.3% 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 Toho Chemical Industry 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. Toho Chemical Industry Co's current ROA % is 2.89%, which is 35% above median its own 10-year median of 2.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toho Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Toho Chemical Industry Co (TSE:4409) is currently considered Modestly Overvalued. The stock's GF Value™ is 円627.27, compared to a current price of 円729.00 — trading 16.2% above its estimated fair value. The current ROA % is 2.89%, which is 35% above median its 10-year median of 2.14 and 0.3% below the Chemicals industry median of 2.90. Toho Chemical Industry Co's overall GF Score™ is 58/100 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 Toho Chemical Industry Co (TSE:4409), the current ROA % is 2.89% 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 Toho Chemical Industry Co (TSE:4409) Overvalued in 2026?
Based on GuruFocus' analysis, Toho Chemical Industry Co stock appears to be overvalued.
The current stock price of 円729.00 is trading 16.2% above its estimated GF Value™ of 円627.27.
GuruFocus considers Toho Chemical Industry Co to be Modestly Overvalued.
Key valuation signals for TSE:4409:
ROA %: 2.89% (35% above median its 10-year median of 2.14)
GF Value™: 円627.27 vs. price of 円729.00 (16.2% above fair value)
Industry Position: 0.3% below the Chemicals median (#906 of 1614)
No single metric tells the full story. See the TSE:4409 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toho Chemical Industry Co Ltd is engaged in the chemical business. Its product lines are surfactants, specialty chemicals, resins, and industrial chemicals. Some of its products are chemicals for textiles, detergents, pharmaceutical formulations, and others. The company serves a range of industries from daily consumables to high-tech products industries.
58GF Score
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