Nippon Signal CoTSE:6741 -0.38%90 ROA % is 17.98% as of Mar. 2026, which is 417% above its 10-year median of 3.48. GuruFocus rates TSE:6741 with a GF Score™ of 90/100 and a GF Value™ of 円1,288.11 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 3,071 Industrial Products companies, Nippon Signal Co ranks better than 77.01% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nippon Signal Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円30,324 Mil.
Nippon Signal Co's average Total Assets over the quarter that ended in Mar. 2026 was 円168,657 Mil. Therefore, Nippon Signal Co's annualized ROA % for the quarter that ended in Mar. 2026 was 17.98%.
The historical rank and industry rank for Nippon Signal Co's ROA % or its related term are showing as below:
TSE:6741'
s ROA % Range Over the Past 10 Years
Min: 1.63 Med: 3.48 Max: 7.19
Current: 7.19
During the past 13 years, Nippon Signal Co's highest ROA % was 7.19%. The lowest was 1.63%. And the median was 3.48%.
TSE:6741's ROA % is ranked better than 77.01% of 3071
companies
in the Industrial Products industry
Industry Median: 3.04
vs TSE:6741: 7.19
Nippon Signal Co (TSE:6741) 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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (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.
Nippon Signal Co ROA % Related Terms
Nippon Signal Co ROA % Historical Data
* Premium members only.
The historical data trend for Nippon Signal Co'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 Electrical Equipment & Parts subindustry, Nippon Signal 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.
Nippon Signal Co ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nippon Signal Co's ROA % distribution charts can be found below:
* The bar in red indicates where Nippon Signal 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Nippon Signal Co (TSE:6741) has a ROA % of 17.98% 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 Nippon Signal Co and its competitors. This is 417% above median its historical median of 3.48. Over the past decade, Nippon Signal Co's ROA % has ranged from 1.63 to 7.19. According to the industry distribution chart, Nippon Signal Co ranks #706 out of 3071 companies in the Industrial Products industry, placing it in the top 23%.
Is Nippon Signal Co's ROA % too high?
Nippon Signal Co's current ROA % of 17.98% is 417% above median its 10-year median of 3.48. Over the past 10 years, this metric has ranged from a low of 1.63 to a high of 7.19. The Industrial Products industry median ROA % is 3.04. Nippon Signal Co's value of 17.98% is 491.4% above this industry median. Based on the distribution chart, Nippon Signal Co ranks #706 out of 3071 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Signal Co has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Signal Co's ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Nippon Signal Co ranks #706 out of 3071 companies for ROA %. This places Nippon Signal Co in the top 23% of its industry — outperforming the majority of peers. The industry median ROA % is 3.04. Nippon Signal Co's value of 17.98% is 491.4% above this benchmark. Historically, Nippon Signal Co's own ROA % has ranged from 1.63 to 7.19 over the past decade. While the company's 10-year median is 3.48 vs. the industry median of 3.04, Nippon Signal 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.04, based on 3,071 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. Nippon Signal Co's current ROA % of 17.98% is 491.4% 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 Nippon Signal Co and its competitors. For the Industrial Products industry, the median ROA % is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Signal Co's current ROA % is 17.98%, which is 417% above median its own 10-year median of 3.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Signal Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Signal Co (TSE:6741) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,288.11, compared to a current price of 円1,579.00 — trading 22.6% above its estimated fair value. The current ROA % is 17.98%, which is 417% above median its 10-year median of 3.48 and 491.4% above the Industrial Products industry median of 3.04. Nippon Signal Co's overall GF Score™ is 90/100 with 1 warning sign 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 Nippon Signal Co (TSE:6741), the current ROA % is 17.98% 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 Nippon Signal Co (TSE:6741) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Signal Co stock appears to be overvalued.
The current stock price of 円1,579.00 is trading 22.6% above its estimated GF Value™ of 円1,288.11.
GuruFocus considers Nippon Signal Co to be Modestly Overvalued.
Key valuation signals for TSE:6741:
ROA %: 17.98% (417% above median its 10-year median of 3.48)
GF Value™: 円1,288.11 vs. price of 円1,579.00 (22.6% above fair value)
Industry Position: 491.4% above the Industrial Products median (#706 of 3071)
No single metric tells the full story. See the TSE:6741 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Signal Co Ltd is a Japanese technology company. Its products and services fall into the following categories: railway signal systems, traffic information systems, automatic fare collection, or AFR, systems, and parking information systems. The railway signal systems division provides automatic train supervision systems, relay interlocking equipment, level-crossing systems, and LED information boards. The traffic information systems division offers universal traffic management systems, local controllers, and LED traffic signal lights. The AFR system division offers comprehensive network systems to automate station operations. The parking information systems division offers car parking systems and bicycle lock systems.
90GF Score
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