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Kawasaki Geological Engineering Co (TSE:4673) 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 (May. 2026) net income data. The Revenue data used here is four times the quarterly (May. 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.
Kawasaki Geological Engineering Co ROA % Related Terms
Kawasaki Geological Engineering Co ROA % Historical 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.
For the Engineering & Construction subindustry, Kawasaki Geological Engineering 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.
Kawasaki Geological Engineering Co ROA % vs Construction Industry
For the Construction industry and Industrials sector, Kawasaki Geological Engineering Co's ROA % distribution charts can be found below:
* The bar in red indicates where Kawasaki Geological Engineering 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 (May. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Kawasaki Geological Engineering Co (TSE:4673) has a ROA % of 11.56% as of May. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Kawasaki Geological Engineering Co and its competitors. This is 535% above median its historical median of 1.82. Over the past decade, Kawasaki Geological Engineering Co's ROA % has ranged from 0.92 to 10.10. According to the industry distribution chart, Kawasaki Geological Engineering Co ranks #213 out of 1787 companies in the Construction industry, placing it in the top 11.9%.
Is Kawasaki Geological Engineering Co's ROA % too high?
Kawasaki Geological Engineering Co's current ROA % of 11.56% is 535% above median its 10-year median of 1.82. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 10.10. The Construction industry median ROA % is 2.87. Kawasaki Geological Engineering Co's value of 11.56% is 302.8% above this industry median. Based on the distribution chart, Kawasaki Geological Engineering Co ranks #213 out of 1787 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Kawasaki Geological Engineering Co has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawasaki Geological Engineering Co's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Kawasaki Geological Engineering Co ranks #213 out of 1787 companies for ROA %. This places Kawasaki Geological Engineering Co in the top 12% of its industry — outperforming the majority of peers. The industry median ROA % is 2.87. Kawasaki Geological Engineering Co's value of 11.56% is 302.8% above this benchmark. Historically, Kawasaki Geological Engineering Co's own ROA % has ranged from 0.92 to 10.10 over the past decade. While the company's 10-year median is 1.82 vs. the industry median of 2.87, Kawasaki Geological Engineering 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 Construction company?
The median ROA % among Construction companies is 2.87, based on 1,787 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. Kawasaki Geological Engineering Co's current ROA % of 11.56% is 302.8% 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 Kawasaki Geological Engineering Co and its competitors. For the Construction industry, the median ROA % is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawasaki Geological Engineering Co's current ROA % is 11.56%, which is 535% above median its own 10-year median of 1.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawasaki Geological Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Kawasaki Geological Engineering Co (TSE:4673) is currently considered Modestly Overvalued. The stock's GF Value™ is 円3,896.43, compared to a current price of 円4,810.00 — trading 23.4% above its estimated fair value. The current ROA % is 11.56%, which is 535% above median its 10-year median of 1.82 and 302.8% above the Construction industry median of 2.87. Kawasaki Geological Engineering Co's overall GF Score™ is 73/100 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 Kawasaki Geological Engineering Co (TSE:4673), the current ROA % is 11.56% as of May. 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 Kawasaki Geological Engineering Co (TSE:4673) Overvalued in 2026?
Based on GuruFocus' analysis, Kawasaki Geological Engineering Co stock appears to be overvalued.
The current stock price of 円4,810.00 is trading 23.4% above its estimated GF Value™ of 円3,896.43.
GuruFocus considers Kawasaki Geological Engineering Co to be Modestly Overvalued.
Key valuation signals for TSE:4673:
ROA %: 11.56% (535% above median its 10-year median of 1.82)
GF Value™: 円3,896.43 vs. price of 円4,810.00 (23.4% above fair value)
Industry Position: 302.8% above the Construction median (#213 of 1787)
No single metric tells the full story. See the TSE:4673 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawasaki Geological Engineering Co Ltd is a Japan based independent consulting firm on geological engineering in Japan. It provides the geological analysis of the land. The company contributes to the development of infrastructures in governmental and private sectors, as well as in natural resources.
73GF Score
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