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Shinhokoku MaterialTSE:5542 -1.26%72 ROA % is 10.31% as of Jun. 2026, which is 55% above its 10-year median of 6.64. GuruFocus rates TSE:5542 with a GF Score™ of 72/100 and a GF Value™ of 円640.68 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 633 Steel companies, Shinhokoku Material ranks better than 76.62% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shinhokoku Material's annualizedNet Income for the quarter that ended in Jun. 2026 was 円863 Mil.
Shinhokoku Material's average Total Assets over the quarter that ended in Jun. 2026 was 円8,377 Mil. Therefore, Shinhokoku Material's annualized ROA % for the quarter that ended in Jun. 2026 was 10.31%.
The historical rank and industry rank for Shinhokoku Material's ROA % or its related term are showing as below:
TSE:5542'
s ROA % Range Over the Past 10 Years
Min: 2.87 Med: 6.64 Max: 23.08
Current: 5.83
During the past 13 years, Shinhokoku Material's highest ROA % was 23.08%. The lowest was 2.87%. And the median was 6.64%.
TSE:5542's ROA % is ranked better than 76.62% of 633
companies
in the Steel industry
Industry Median: 2.38
vs TSE:5542: 5.83
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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Shinhokoku Material ROA % Related Terms
Shinhokoku Material ROA % Historical Data
* Premium members only.
The historical data trend for Shinhokoku Material'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 Steel subindustry, Shinhokoku Material'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.
Shinhokoku Material ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, Shinhokoku Material's ROA % distribution charts can be found below:
* The bar in red indicates where Shinhokoku Material'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 (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Shinhokoku Material (TSE:5542) has a ROA % of 10.31% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Shinhokoku Material and its competitors. This is 55% above median its historical median of 6.64. Over the past decade, Shinhokoku Material's ROA % has ranged from 2.87 to 23.08. According to the industry distribution chart, Shinhokoku Material ranks #148 out of 633 companies in the Steel industry, placing it in the top 23.4%.
Is Shinhokoku Material's ROA % too high?
Shinhokoku Material's current ROA % of 10.31% is 55% above median its 10-year median of 6.64. Over the past 10 years, this metric has ranged from a low of 2.87 to a high of 23.08. The Steel industry median ROA % is 2.38. Shinhokoku Material's value of 10.31% is 333.2% above this industry median. Based on the distribution chart, Shinhokoku Material ranks #148 out of 633 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Shinhokoku Material has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shinhokoku Material's ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, Shinhokoku Material ranks #148 out of 633 companies for ROA %. This places Shinhokoku Material in the top 23% of its industry — outperforming the majority of peers. The industry median ROA % is 2.38. Shinhokoku Material's value of 10.31% is 333.2% above this benchmark. Historically, Shinhokoku Material's own ROA % has ranged from 2.87 to 23.08 over the past decade. While the company's 10-year median is 6.64 vs. the industry median of 2.38, Shinhokoku Material 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 Steel company?
The median ROA % among Steel companies is 2.38, based on 633 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. Shinhokoku Material's current ROA % of 10.31% is 333.2% 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 Shinhokoku Material and its competitors. For the Steel industry, the median ROA % is 2.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinhokoku Material's current ROA % is 10.31%, which is 55% above median its own 10-year median of 6.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinhokoku Material stock overvalued right now?
Based on GuruFocus' analysis, Shinhokoku Material (TSE:5542) is currently considered Significantly Overvalued. The stock's GF Value™ is 円640.68, compared to a current price of 円943.00 — trading 47.2% above its estimated fair value. The current ROA % is 10.31%, which is 55% above median its 10-year median of 6.64 and 333.2% above the Steel industry median of 2.38. Shinhokoku Material's overall GF Score™ is 72/100 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 Shinhokoku Material (TSE:5542), the current ROA % is 10.31% as of Jun. 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 Shinhokoku Material (TSE:5542) Overvalued in 2026?
Based on GuruFocus' analysis, Shinhokoku Material stock appears to be overvalued.
The current stock price of 円943.00 is trading 47.2% above its estimated GF Value™ of 円640.68.
GuruFocus considers Shinhokoku Material to be Significantly Overvalued.
Key valuation signals for TSE:5542:
ROA %: 10.31% (55% above median its 10-year median of 6.64)
GF Value™: 円640.68 vs. price of 円943.00 (47.2% above fair value)
Industry Position: 333.2% above the Steel median (#148 of 633)
No single metric tells the full story. See the TSE:5542 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shinhokoku Material Corp is a Japan-based company that engages in the manufacture and sale of special alloy industrial castings and precision processed products. The company has two business segments, which include the Special alloy business and the Real estate rental business. The company generates the majority of its revenue from the special alloy business segment, which produces parts for semiconductor and FPD manufacturing equipment, tools for manufacturing seamless steel pipes, electrical resistance materials, and special welding rods.
72GF Score
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