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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Okamoto Machine Tool Works's annualizedNet Income for the quarter that ended in Mar. 2026 was 円1,552 Mil.
Okamoto Machine Tool Works's average Total Assets over the quarter that ended in Mar. 2026 was 円65,216 Mil. Therefore, Okamoto Machine Tool Works's annualized ROA % for the quarter that ended in Mar. 2026 was 2.38%.
The historical rank and industry rank for Okamoto Machine Tool Works's ROA % or its related term are showing as below:
TSE:6125'
s ROA % Range Over the Past 10 Years
Min: 1.84 Med: 5.56 Max: 9.49
Current: 1.88
During the past 13 years, Okamoto Machine Tool Works's highest ROA % was 9.49%. The lowest was 1.84%. And the median was 5.56%.
TSE:6125's ROA % is ranked worse than 59.62% of 3073
companies
in the Industrial Products industry
Industry Median: 3.06
vs TSE:6125: 1.88
Okamoto Machine Tool Works (TSE:6125) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
* 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 Specialty Industrial Machinery subindustry, Okamoto Machine Tool Works'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.
Okamoto Machine Tool Works ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Okamoto Machine Tool Works's ROA % distribution charts can be found below:
* The bar in red indicates where Okamoto Machine Tool Works'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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Okamoto Machine Tool Works (TSE:6125) has a ROA % of 2.38% 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 Okamoto Machine Tool Works and its competitors. This is 57% below median its historical median of 5.56. Over the past decade, Okamoto Machine Tool Works' ROA % has ranged from 1.84 to 9.49. According to the industry distribution chart, Okamoto Machine Tool Works ranks #1832 out of 3073 companies in the Industrial Products industry, placing it in the top 59.6%.
Is Okamoto Machine Tool Works' ROA % too high?
Okamoto Machine Tool Works' current ROA % of 2.38% is 57% below median its 10-year median of 5.56. Over the past 10 years, this metric has ranged from a low of 1.84 to a high of 9.49. The Industrial Products industry median ROA % is 3.06. Okamoto Machine Tool Works' value of 2.38% is 22.2% below this industry median. Based on the distribution chart, Okamoto Machine Tool Works ranks #1832 out of 3073 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Okamoto Machine Tool Works has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Okamoto Machine Tool Works' ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Okamoto Machine Tool Works ranks #1832 out of 3073 companies for ROA %. This places Okamoto Machine Tool Works in the lower half of its industry. The industry median ROA % is 3.06. Okamoto Machine Tool Works' value of 2.38% is 22.2% below this benchmark. Historically, Okamoto Machine Tool Works' own ROA % has ranged from 1.84 to 9.49 over the past decade. While the company's 10-year median is 5.56 vs. the industry median of 3.06, Okamoto Machine Tool Works has consistently been below 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,073 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. Okamoto Machine Tool Works's current ROA % of 2.38% is 22.2% below 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 Okamoto Machine Tool Works and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Okamoto Machine Tool Works's current ROA % is 2.38%, which is 57% below median its own 10-year median of 5.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Okamoto Machine Tool Works stock overvalued right now?
Based on GuruFocus' analysis, Okamoto Machine Tool Works (TSE:6125) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,504.13, compared to a current price of 円5,160.00 — trading 47.3% above its estimated fair value. The current ROA % is 2.38%, which is 57% below median its 10-year median of 5.56 and 22.2% below the Industrial Products industry median of 3.06. Okamoto Machine Tool Works' overall GF Score™ is 61/100 with 12 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 Okamoto Machine Tool Works (TSE:6125), the current ROA % is 2.38% 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 Okamoto Machine Tool Works (TSE:6125) Overvalued in 2026?
Based on GuruFocus' analysis, Okamoto Machine Tool Works stock appears to be overvalued.
The current stock price of 円5,160.00 is trading 47.3% above its estimated GF Value™ of 円3,504.13.
GuruFocus considers Okamoto Machine Tool Works to be Significantly Overvalued.
Key valuation signals for TSE:6125:
ROA %: 2.38% (57% below median its 10-year median of 5.56)
GF Value™: 円3,504.13 vs. price of 円5,160.00 (47.3% above fair value)
Industry Position: 22.2% below the Industrial Products median (#1832 of 3073)
No single metric tells the full story. See the TSE:6125 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Okamoto Machine Tool Works Ltd is engaged in the manufacture and sale of various grinding machines and semiconductor-related manufacturing equipment. The company's reportable segments are the machine tool business and the semiconductor-related equipment business. The majority of its revenue is generated from the machine tools business, which mainly produces and sells grinding machines, precision gears, and castings. The semiconductor-related equipment business manufactures and sells polishing machines, grinding machines, and slicing machines.
61GF Score
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