AzbilTSE:6845 -0.96%89 ROA % is 19.98% as of Mar. 2026, which is 174% above its 10-year median of 7.28. GuruFocus rates TSE:6845 with a GF Score™ of 89/100 and a GF Value™ of 円1,303.00 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,075 Industrial Products companies, Azbil ranks better than 92.59% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Azbil's annualizedNet Income for the quarter that ended in Mar. 2026 was 円63,548 Mil.
Azbil's average Total Assets over the quarter that ended in Mar. 2026 was 円318,070 Mil. Therefore, Azbil's annualized ROA % for the quarter that ended in Mar. 2026 was 19.98%.
The historical rank and industry rank for Azbil's ROA % or its related term are showing as below:
TSE:6845'
s ROA % Range Over the Past 10 Years
Min: 5.04 Med: 7.28 Max: 13.03
Current: 12.46
During the past 13 years, Azbil's highest ROA % was 13.03%. The lowest was 5.04%. And the median was 7.28%.
TSE:6845's ROA % is ranked better than 92.59% of 3075
companies
in the Industrial Products industry
Industry Median: 3.05
vs TSE:6845: 12.46
Azbil (TSE:6845) 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.
Azbil ROA % Related Terms
Azbil ROA % Historical Data
* Premium members only.
The historical data trend for Azbil'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 Specialty Industrial Machinery subindustry, Azbil'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.
Azbil ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Azbil's ROA % distribution charts can be found below:
* The bar in red indicates where Azbil'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.
Azbil (TSE:6845) has a ROA % of 19.98% 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 Azbil and its competitors. This is 174% above median its historical median of 7.28. Over the past decade, Azbil's ROA % has ranged from 5.04 to 13.03. According to the industry distribution chart, Azbil ranks #228 out of 3075 companies in the Industrial Products industry, placing it in the top 7.4%.
Is Azbil's ROA % too high?
Azbil's current ROA % of 19.98% is 174% above median its 10-year median of 7.28. Over the past 10 years, this metric has ranged from a low of 5.04 to a high of 13.03. The Industrial Products industry median ROA % is 3.05. Azbil's value of 19.98% is 555.1% above this industry median. Based on the distribution chart, Azbil ranks #228 out of 3075 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Azbil has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Azbil's ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Azbil ranks #228 out of 3075 companies for ROA %. This places Azbil in the top 7% of its industry — outperforming the majority of peers. The industry median ROA % is 3.05. Azbil's value of 19.98% is 555.1% above this benchmark. Historically, Azbil's own ROA % has ranged from 5.04 to 13.03 over the past decade. While the company's 10-year median is 7.28 vs. the industry median of 3.05, Azbil 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 3.05, based on 3,075 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. Azbil's current ROA % of 19.98% is 555.1% 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 Azbil and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azbil's current ROA % is 19.98%, which is 174% above median its own 10-year median of 7.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azbil stock overvalued right now?
Based on GuruFocus' analysis, Azbil (TSE:6845) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,303.00, compared to a current price of 円1,701.00 — trading 30.5% above its estimated fair value. The current ROA % is 19.98%, which is 174% above median its 10-year median of 7.28 and 555.1% above the Industrial Products industry median of 3.05. Azbil's overall GF Score™ is 89/100 with 5 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 Azbil (TSE:6845), the current ROA % is 19.98% 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 Azbil (TSE:6845) Overvalued in 2026?
Based on GuruFocus' analysis, Azbil stock appears to be overvalued.
The current stock price of 円1,701.00 is trading 30.5% above its estimated GF Value™ of 円1,303.00.
GuruFocus considers Azbil to be Significantly Overvalued.
Key valuation signals for TSE:6845:
ROA %: 19.98% (174% above median its 10-year median of 7.28)
GF Value™: 円1,303.00 vs. price of 円1,701.00 (30.5% above fair value)
Industry Position: 555.1% above the Industrial Products median (#228 of 3075)
No single metric tells the full story. See the TSE:6845 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Azbil Corp is a Japan-based company engaged in the automation business. The company operates through three reportable segments: Building Automation Business, Advanced Automation Business, and Life Automation Business. The Building Automation Business provides products, engineering, and services such as automatic air conditioning control and security systems for commercial buildings and production facilities. The Advanced Automation Business offers control systems, switches, and sensors, along with engineering and maintenance services for factories and plants. The Life Automation Business manufactures and sells meters, measuring instruments, and residential air conditioning systems for home builders. It generates the majority of its revenue from the Building Automation Business segment.
89GF Score
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