Nippon Shinyaku CoTSE:4516 +0.30%91 ROA % is 4.60% as of Mar. 2026, which is 54% below its 10-year median of 10.01. GuruFocus rates TSE:4516 with a GF Score™ of 91/100 and a GF Value™ of 円4,785.64 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,006 Drug Manufacturers companies, Nippon Shinyaku Co ranks better than 82.5% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nippon Shinyaku Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円15,508 Mil.
Nippon Shinyaku Co's average Total Assets over the quarter that ended in Mar. 2026 was 円337,234 Mil. Therefore, Nippon Shinyaku Co's annualized ROA % for the quarter that ended in Mar. 2026 was 4.60%.
The historical rank and industry rank for Nippon Shinyaku Co's ROA % or its related term are showing as below:
TSE:4516'
s ROA % Range Over the Past 10 Years
Min: 8.21 Med: 10.01 Max: 11.9
Current: 9.62
During the past 13 years, Nippon Shinyaku Co's highest ROA % was 11.90%. The lowest was 8.21%. And the median was 10.01%.
TSE:4516's ROA % is ranked better than 82.5% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 2.685
vs TSE:4516: 9.62
Nippon Shinyaku Co (TSE:4516) 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 Shinyaku Co ROA % Related Terms
Nippon Shinyaku Co ROA % Historical Data
* Premium members only.
The historical data trend for Nippon Shinyaku 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 Drug Manufacturers - Specialty & Generic subindustry, Nippon Shinyaku 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 Shinyaku Co ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Nippon Shinyaku Co's ROA % distribution charts can be found below:
* The bar in red indicates where Nippon Shinyaku 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 Shinyaku Co (TSE:4516) has a ROA % of 4.60% 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 Shinyaku Co and its competitors. This is 54% below median its historical median of 10.01. Over the past decade, Nippon Shinyaku Co's ROA % has ranged from 8.21 to 11.90. According to the industry distribution chart, Nippon Shinyaku Co ranks #176 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 17.5%.
Is Nippon Shinyaku Co's ROA % too high?
Nippon Shinyaku Co's current ROA % of 4.60% is 54% below median its 10-year median of 10.01. Over the past 10 years, this metric has ranged from a low of 8.21 to a high of 11.90. The Drug Manufacturers industry median ROA % is 2.69. Nippon Shinyaku Co's value of 4.60% is 71.3% above this industry median. Based on the distribution chart, Nippon Shinyaku Co ranks #176 out of 1006 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Shinyaku Co has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shinyaku Co's ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Nippon Shinyaku Co ranks #176 out of 1006 companies for ROA %. This places Nippon Shinyaku Co in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 2.69. Nippon Shinyaku Co's value of 4.60% is 71.3% above this benchmark. Historically, Nippon Shinyaku Co's own ROA % has ranged from 8.21 to 11.90 over the past decade. While the company's 10-year median is 10.01 vs. the industry median of 2.69, Nippon Shinyaku 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.69, based on 1,006 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 Shinyaku Co's current ROA % of 4.60% is 71.3% 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 Shinyaku Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Shinyaku Co's current ROA % is 4.60%, which is 54% below median its own 10-year median of 10.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shinyaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shinyaku Co (TSE:4516) is currently considered Modestly Undervalued. The stock's GF Value™ is 円4,785.64, compared to a current price of 円4,049.00 — trading 15.4% below its estimated fair value. The current ROA % is 4.60%, which is 54% below median its 10-year median of 10.01 and 71.3% above the Drug Manufacturers industry median of 2.69. Nippon Shinyaku Co's overall GF Score™ is 91/100 with 3 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 Shinyaku Co (TSE:4516), the current ROA % is 4.60% 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 Shinyaku Co (TSE:4516) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shinyaku Co stock appears to be undervalued.
The current stock price of 円4,049.00 is trading 15.4% below its estimated GF Value™ of 円4,785.64.
GuruFocus considers Nippon Shinyaku Co to be Modestly Undervalued.
Key valuation signals for TSE:4516:
ROA %: 4.60% (54% below median its 10-year median of 10.01)
GF Value™: 円4,785.64 vs. price of 円4,049.00 (15.4% below fair value)
Industry Position: 71.3% above the Drug Manufacturers median (#176 of 1006)
No single metric tells the full story. See the TSE:4516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shinyaku Co Ltd is engaged in the pharmaceuticals and functional food businesses. The Pharmaceuticals Business develops and sells treatments for urological disorders, blood cancer, rare and intractable diseases, and gynecological conditions. The Functional Food Business produces and sells health food ingredients, quality-stabilizing preservatives, protein preparations, and supplements. It generates the majority of its revenue from the Pharmaceuticals segment.
91GF Score
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