Serverworks CoTSE:4434 +1.42%82 ROA % is 3.06% as of Feb. 2026, which is 52% below its 10-year median of 6.35. GuruFocus rates TSE:4434 with a GF Score™ of 82/100 and a GF Value™ of 円3,566.89 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,881 Software companies, Serverworks Co ranks worse than 64.63% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Serverworks Co's annualizedNet Income for the quarter that ended in Feb. 2026 was 円604 Mil.
Serverworks Co's average Total Assets over the quarter that ended in Feb. 2026 was 円19,772 Mil. Therefore, Serverworks Co's annualized ROA % for the quarter that ended in Feb. 2026 was 3.06%.
The historical rank and industry rank for Serverworks Co's ROA % or its related term are showing as below:
TSE:4434'
s ROA % Range Over the Past 10 Years
Min: -3 Med: 6.35 Max: 12.46
Current: -3
During the past 9 years, Serverworks Co's highest ROA % was 12.46%. The lowest was -3.00%. And the median was 6.35%.
TSE:4434's ROA % is ranked worse than 64.63% of 2881
companies
in the Software industry
Industry Median: 1.65
vs TSE:4434: -3.00
Serverworks Co (TSE:4434) 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 (Feb. 2026) net income data. The Revenue data used here is two times the semi-annual (Feb. 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.
Serverworks Co ROA % Related Terms
Serverworks Co ROA % Historical Data
* Premium members only.
The historical data trend for Serverworks 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 Software - Infrastructure subindustry, Serverworks 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.
Serverworks Co ROA % vs Software Industry
For the Software industry and Technology sector, Serverworks Co's ROA % distribution charts can be found below:
* The bar in red indicates where Serverworks 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 (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Serverworks Co (TSE:4434) has a ROA % of 3.06% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Serverworks Co and its competitors. This is 52% below median its historical median of 6.35. According to the industry distribution chart, Serverworks Co ranks #1862 out of 2881 companies in the Software industry, placing it in the top 64.6%.
Is Serverworks Co's ROA % too high?
Serverworks Co's current ROA % of 3.06% is 52% below median its 10-year median of 6.35. The Software industry median ROA % is 1.65. Serverworks Co's value of 3.06% is 85.5% above this industry median. Based on the distribution chart, Serverworks Co ranks #1862 out of 2881 companies in the Software industry, which is below the industry midpoint. Overall, Serverworks Co has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Serverworks Co's ROA % compare to MSFT and ORCL?
According to the Software industry distribution chart, Serverworks Co ranks #1862 out of 2881 companies for ROA %. This places Serverworks Co in the lower half of its industry. The industry median ROA % is 1.65. Serverworks Co's value of 3.06% is 85.5% above this benchmark. While the company's 10-year median is 6.35 vs. the industry median of 1.65, Serverworks 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 Software company?
The median ROA % among Software companies is 1.65, based on 2,881 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. Serverworks Co's current ROA % of 3.06% is 85.5% 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 Serverworks Co and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serverworks Co's current ROA % is 3.06%, which is 52% below median its own 10-year median of 6.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Serverworks Co stock overvalued right now?
Based on GuruFocus' analysis, Serverworks Co (TSE:4434) is currently considered Significantly Undervalued. The stock's GF Value™ is 円3,566.89, compared to a current price of 円1,932.00 — trading 45.8% below its estimated fair value. The current ROA % is 3.06%, which is 52% below median its 10-year median of 6.35 and 85.5% above the Software industry median of 1.65. Serverworks Co's overall GF Score™ is 82/100 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 Serverworks Co (TSE:4434), the current ROA % is 3.06% as of Feb. 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 Serverworks Co (TSE:4434) Overvalued in 2026?
Based on GuruFocus' analysis, Serverworks Co stock appears to be undervalued.
The current stock price of 円1,932.00 is trading 45.8% below its estimated GF Value™ of 円3,566.89.
GuruFocus considers Serverworks Co to be Significantly Undervalued.
Key valuation signals for TSE:4434:
ROA %: 3.06% (52% below median its 10-year median of 6.35)
GF Value™: 円3,566.89 vs. price of 円1,932.00 (45.8% below fair value)
Industry Position: 85.5% above the Software median (#1862 of 2881)
No single metric tells the full story. See the TSE:4434 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Serverworks Co Ltd is a cloud integrator that provides integration business and services specialized for Amazon Web Services (AWS). The company's services include AWS transition support, AWS resale service, AWS operation automation service.
82GF Score
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