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AR Advanced TechnologyTSE:5578 +2.15%57 ROA % is 11.82% as of Feb. 2026, which is 35% above its 10-year median of 8.76. GuruFocus rates TSE:5578 with a GF Score™ of 57/100 and a GF Value™ of 円1,151.47 (Modestly Undervalued). Among 2,896 Software companies, AR Advanced Technology ranks better than 82.94% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. AR Advanced Technology's annualizedNet Income for the quarter that ended in Feb. 2026 was 円790 Mil.
AR Advanced Technology's average Total Assets over the quarter that ended in Feb. 2026 was 円6,681 Mil. Therefore, AR Advanced Technology's annualized ROA % for the quarter that ended in Feb. 2026 was 11.82%.
The historical rank and industry rank for AR Advanced Technology's ROA % or its related term are showing as below:
TSE:5578'
s ROA % Range Over the Past 10 Years
Min: 5.98 Med: 8.76 Max: 12.72
Current: 10.91
During the past 5 years, AR Advanced Technology's highest ROA % was 12.72%. The lowest was 5.98%. And the median was 8.76%.
TSE:5578's ROA % is ranked better than 82.94% of 2896
companies
in the Software industry
Industry Median: 1.765
vs TSE:5578: 10.91
AR Advanced Technology (TSE:5578) 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 (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (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.
* 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 Information Technology Services subindustry, AR Advanced Technology'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.
AR Advanced Technology ROA % vs Software Industry
For the Software industry and Technology sector, AR Advanced Technology's ROA % distribution charts can be found below:
* The bar in red indicates where AR Advanced Technology'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 (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
AR Advanced Technology (TSE:5578) has a ROA % of 11.82% 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 AR Advanced Technology and its competitors. This is 35% above median its historical median of 8.76. Over the past decade, AR Advanced Technology's ROA % has ranged from 5.98 to 12.72. According to the industry distribution chart, AR Advanced Technology ranks #494 out of 2896 companies in the Software industry, placing it in the top 17.1%.
Is AR Advanced Technology's ROA % too high?
AR Advanced Technology's current ROA % of 11.82% is 35% above median its 10-year median of 8.76. Over the past 10 years, this metric has ranged from a low of 5.98 to a high of 12.72. The Software industry median ROA % is 1.77. AR Advanced Technology's value of 11.82% is 569.7% above this industry median. Based on the distribution chart, AR Advanced Technology ranks #494 out of 2896 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, AR Advanced Technology has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AR Advanced Technology's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, AR Advanced Technology ranks #494 out of 2896 companies for ROA %. This places AR Advanced Technology in the top 17% of its industry — outperforming the majority of peers. The industry median ROA % is 1.77. AR Advanced Technology's value of 11.82% is 569.7% above this benchmark. Historically, AR Advanced Technology's own ROA % has ranged from 5.98 to 12.72 over the past decade. While the company's 10-year median is 8.76 vs. the industry median of 1.77, AR Advanced Technology 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 1.77, based on 2,896 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. AR Advanced Technology's current ROA % of 11.82% is 569.7% 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 AR Advanced Technology and its competitors. For the Software industry, the median ROA % is 1.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AR Advanced Technology's current ROA % is 11.82%, which is 35% above median its own 10-year median of 8.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AR Advanced Technology stock overvalued right now?
Based on GuruFocus' analysis, AR Advanced Technology (TSE:5578) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,151.47, compared to a current price of 円855.00 — trading 25.7% below its estimated fair value. The current ROA % is 11.82%, which is 35% above median its 10-year median of 8.76 and 569.7% above the Software industry median of 1.77. AR Advanced Technology's overall GF Score™ is 57/100. 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 AR Advanced Technology (TSE:5578), the current ROA % is 11.82% 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 AR Advanced Technology (TSE:5578) Overvalued in 2026?
Based on GuruFocus' analysis, AR Advanced Technology stock appears to be undervalued.
The current stock price of 円855.00 is trading 25.7% below its estimated GF Value™ of 円1,151.47.
GuruFocus considers AR Advanced Technology to be Modestly Undervalued.
Key valuation signals for TSE:5578:
ROA %: 11.82% (35% above median its 10-year median of 8.76)
GF Value™: 円1,151.47 vs. price of 円855.00 (25.7% below fair value)
Industry Position: 569.7% above the Software median (#494 of 2896)
No single metric tells the full story. See the TSE:5578 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AR Advanced Technology Inc is engaged in the DX solution business utilizing cloud technology, data analysis, and AI. It provides a comprehensive service that goes beyond simple system introduction. Its products and services include Loogue faq, an AI chatbot that is specialized in employee inquiries; Zidoma data which may be useful to reduce fileserver operating costs; and Mieta a cloud contact center analysis management service.
57GF Score
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