Daido Metal CoTSE:7245 -3.21%61 ROA % is 3.75% as of Mar. 2026, which is 140% above its 10-year median of 1.56. GuruFocus rates TSE:7245 with a GF Score™ of 61/100 and a GF Value™ of 円652.69 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,335 Vehicles & Parts companies, Daido Metal Co ranks worse than 56.85% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Daido Metal Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円7,752 Mil.
Daido Metal Co's average Total Assets over the quarter that ended in Mar. 2026 was 円206,636 Mil. Therefore, Daido Metal Co's annualized ROA % for the quarter that ended in Mar. 2026 was 3.75%.
The historical rank and industry rank for Daido Metal Co's ROA % or its related term are showing as below:
TSE:7245'
s ROA % Range Over the Past 10 Years
Min: -1.3 Med: 1.56 Max: 2.56
Current: 2.19
During the past 13 years, Daido Metal Co's highest ROA % was 2.56%. The lowest was -1.30%. And the median was 1.56%.
TSE:7245's ROA % is ranked worse than 56.85% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs TSE:7245: 2.19
Daido Metal Co (TSE:7245) 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.
Daido Metal Co ROA % Related Terms
Daido Metal Co ROA % Historical Data
* Premium members only.
The historical data trend for Daido Metal 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 Auto Parts subindustry, Daido Metal 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.
Daido Metal Co ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Daido Metal Co's ROA % distribution charts can be found below:
* The bar in red indicates where Daido Metal 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.
Daido Metal Co (TSE:7245) has a ROA % of 3.75% 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 Daido Metal Co and its competitors. This is 140% above median its historical median of 1.56. According to the industry distribution chart, Daido Metal Co ranks #759 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 56.9%.
Is Daido Metal Co's ROA % too high?
Daido Metal Co's current ROA % of 3.75% is 140% above median its 10-year median of 1.56. The Vehicles & Parts industry median ROA % is 2.95. Daido Metal Co's value of 3.75% is 27.1% above this industry median. Based on the distribution chart, Daido Metal Co ranks #759 out of 1335 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Daido Metal Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daido Metal Co's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Daido Metal Co ranks #759 out of 1335 companies for ROA %. This places Daido Metal Co in the lower half of its industry. The industry median ROA % is 2.95. Daido Metal Co's value of 3.75% is 27.1% above this benchmark. While the company's 10-year median is 1.56 vs. the industry median of 2.95, Daido Metal 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 a Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,335 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. Daido Metal Co's current ROA % of 3.75% is 27.1% 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 Daido Metal Co and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daido Metal Co's current ROA % is 3.75%, which is 140% above median its own 10-year median of 1.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daido Metal Co stock overvalued right now?
Based on GuruFocus' analysis, Daido Metal Co (TSE:7245) is currently considered Significantly Overvalued. The stock's GF Value™ is 円652.69, compared to a current price of 円1,691.00 — trading 159.1% above its estimated fair value. The current ROA % is 3.75%, which is 140% above median its 10-year median of 1.56 and 27.1% above the Vehicles & Parts industry median of 2.95. Daido Metal Co's overall GF Score™ is 61/100 with 9 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 Daido Metal Co (TSE:7245), the current ROA % is 3.75% 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 Daido Metal Co (TSE:7245) Overvalued in 2026?
Based on GuruFocus' analysis, Daido Metal Co stock appears to be overvalued.
The current stock price of 円1,691.00 is trading 159.1% above its estimated GF Value™ of 円652.69.
GuruFocus considers Daido Metal Co to be Significantly Overvalued.
Key valuation signals for TSE:7245:
ROA %: 3.75% (140% above median its 10-year median of 1.56)
GF Value™: 円652.69 vs. price of 円1,691.00 (159.1% above fair value)
Industry Position: 27.1% above the Vehicles & Parts median (#759 of 1335)
No single metric tells the full story. See the TSE:7245 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daido Metal Co Ltd manufactures and sells a variety of bearings including automobile engine bearings and large ship engine bearings. The company has a production and sales network in the five-hub system of Japan, North America, Europe, Asia, and China. It manufactures bearings for trucks, construction and agricultural machinery, and bearings for automobile parts such as turbochargers and shock absorbers. Its products portfolio includes metal-polymer bearings, metallic bearings, engine bearing, turbomachinery bearing systems, modular products, pump, centralized lubrication, capacitors and semi-dry processing which are used in including automotive, marine, construction machinery, agricultural machines, industrial, energy, infrastructure and transportation, leisure, and household appliances.
61GF Score
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