KokyoTSE:5887 23 ROA % is 4.49% as of Dec. 2025, which is 55% below its 10-year median of 10.05. GuruFocus rates TSE:5887 with a GF Score™ of 23/100. The stock has 4 warning signs investors should review.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kokyo's annualizedNet Income for the quarter that ended in Dec. 2025 was 円62 Mil.
Kokyo's average Total Assets over the quarter that ended in Dec. 2025 was 円1,378 Mil. Therefore, Kokyo's annualized ROA % for the quarter that ended in Dec. 2025 was 4.49%.
The historical rank and industry rank for Kokyo's ROA % or its related term are showing as below:
TSE:5887'
s ROA % Range Over the Past 10 Years
Min: 3.49 Med: 10.05 Max: 14.71
Current: 3.49
During the past 5 years, Kokyo's highest ROA % was 14.71%. The lowest was 3.49%. And the median was 10.05%.
TSE:5887's ROA % is not ranked
in the Hardware industry.
Industry Median: 2.265
vs TSE:5887: 3.49
Kokyo (TSE:5887) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
Kokyo ROA % Related Terms
Kokyo ROA % Historical Data
* Premium members only.
The historical data trend for Kokyo'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 Scientific & Technical Instruments subindustry, Kokyo'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.
Kokyo ROA % vs Hardware Industry
For the Hardware industry and Technology sector, Kokyo's ROA % distribution charts can be found below:
* The bar in red indicates where Kokyo'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Kokyo (TSE:5887) has a ROA % of 4.49% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Kokyo and its competitors. This is 55% below median its historical median of 10.05. Over the past decade, Kokyo's ROA % has ranged from 3.49 to 14.71.
Is Kokyo's ROA % too high?
Kokyo's current ROA % of 4.49% is 55% below median its 10-year median of 10.05. Over the past 10 years, this metric has ranged from a low of 3.49 to a high of 14.71. The Hardware industry median ROA % is 2.27. Kokyo's value of 4.49% is 98.2% above this industry median. Overall, Kokyo has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Kokyo's ROA % compare to ?
Kokyo's ROA % of 4.49% can be compared against companies in the Hardware industry. The industry median ROA % is 2.27. Kokyo's value of 4.49% is 98.2% above this benchmark. Historically, Kokyo's own ROA % has ranged from 3.49 to 14.71 over the past decade. While the company's 10-year median is 10.05 vs. the industry median of 2.27, Kokyo 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 Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,502 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. Kokyo's current ROA % of 4.49% is 98.2% 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 Kokyo and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kokyo's current ROA % is 4.49%, which is 55% below median its own 10-year median of 10.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kokyo stock overvalued right now?
Kokyo (TSE:5887) has a current ROA % of 4.49%. The current ROA % is 4.49%, which is 55% below median its 10-year median of 10.05 and 98.2% above the Hardware industry median of 2.27. Kokyo's overall GF Score™ is 23/100 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 Kokyo (TSE:5887), the current ROA % is 4.49% as of Dec. 2025. 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.
Kokyo Inc is specializes in the laser industry, providing a platform that connects companies, engineers, and researchers involved in light and lasers. The company is a single segment engaged in the sale of laser-related products and related businesses.
23GF Score
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