Kohnan Shoji CoTSE:7516 +1.00%72 ROA % is 1.07% as of Feb. 2026, which is 68% below its 10-year median of 3.32. GuruFocus rates TSE:7516 with a GF Score™ of 72/100 and a GF Value™ of 円4,381.77 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,134 Retail - Cyclical companies, Kohnan Shoji Co ranks worse than 52.2% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kohnan Shoji Co's annualizedNet Income for the quarter that ended in Feb. 2026 was 円5,424 Mil.
Kohnan Shoji Co's average Total Assets over the quarter that ended in Feb. 2026 was 円509,034 Mil. Therefore, Kohnan Shoji Co's annualized ROA % for the quarter that ended in Feb. 2026 was 1.07%.
The historical rank and industry rank for Kohnan Shoji Co's ROA % or its related term are showing as below:
TSE:7516'
s ROA % Range Over the Past 10 Years
Min: 2.1 Med: 3.32 Max: 4.82
Current: 2.46
During the past 13 years, Kohnan Shoji Co's highest ROA % was 4.82%. The lowest was 2.10%. And the median was 3.32%.
TSE:7516's ROA % is ranked worse than 52.2% of 1134
companies
in the Retail - Cyclical industry
Industry Median: 2.725
vs TSE:7516: 2.46
Kohnan Shoji Co (TSE:7516) 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 (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 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.
Kohnan Shoji Co ROA % Related Terms
Kohnan Shoji Co ROA % Historical Data
* Premium members only.
The historical data trend for Kohnan Shoji 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 Home Improvement Retail subindustry, Kohnan Shoji 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.
Kohnan Shoji Co ROA % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Kohnan Shoji Co's ROA % distribution charts can be found below:
* The bar in red indicates where Kohnan Shoji 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 (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Kohnan Shoji Co (TSE:7516) has a ROA % of 1.07% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Kohnan Shoji Co and its competitors. This is 68% below median its historical median of 3.32. Over the past decade, Kohnan Shoji Co's ROA % has ranged from 2.10 to 4.82. According to the industry distribution chart, Kohnan Shoji Co ranks #592 out of 1134 companies in the Retail - Cyclical industry, placing it in the top 52.2%.
Is Kohnan Shoji Co's ROA % too high?
Kohnan Shoji Co's current ROA % of 1.07% is 68% below median its 10-year median of 3.32. Over the past 10 years, this metric has ranged from a low of 2.10 to a high of 4.82. The Retail - Cyclical industry median ROA % is 2.73. Kohnan Shoji Co's value of 1.07% is 60.7% below this industry median. Based on the distribution chart, Kohnan Shoji Co ranks #592 out of 1134 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Kohnan Shoji Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kohnan Shoji Co's ROA % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Kohnan Shoji Co ranks #592 out of 1134 companies for ROA %. This places Kohnan Shoji Co in the lower half of its industry. The industry median ROA % is 2.73. Kohnan Shoji Co's value of 1.07% is 60.7% below this benchmark. Historically, Kohnan Shoji Co's own ROA % has ranged from 2.10 to 4.82 over the past decade. While the company's 10-year median is 3.32 vs. the industry median of 2.73, Kohnan Shoji Co 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 a Retail - Cyclical company?
The median ROA % among Retail - Cyclical companies is 2.73, based on 1,134 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. Kohnan Shoji Co's current ROA % of 1.07% is 60.7% 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 Kohnan Shoji Co and its competitors. For the Retail - Cyclical industry, the median ROA % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kohnan Shoji Co's current ROA % is 1.07%, which is 68% below median its own 10-year median of 3.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kohnan Shoji Co stock overvalued right now?
Based on GuruFocus' analysis, Kohnan Shoji Co (TSE:7516) is currently considered Fairly Valued. The stock's GF Value™ is 円4,381.77, compared to a current price of 円4,045.00 — trading 7.7% below its estimated fair value. The current ROA % is 1.07%, which is 68% below median its 10-year median of 3.32 and 60.7% below the Retail - Cyclical industry median of 2.73. Kohnan Shoji Co's overall GF Score™ is 72/100 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 Kohnan Shoji Co (TSE:7516), the current ROA % is 1.07% as of Feb. 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 Kohnan Shoji Co (TSE:7516) Overvalued in 2026?
Based on GuruFocus' analysis, Kohnan Shoji Co stock appears to be undervalued.
The current stock price of 円4,045.00 is trading 7.7% below its estimated GF Value™ of 円4,381.77.
GuruFocus considers Kohnan Shoji Co to be Fairly Valued.
Key valuation signals for TSE:7516:
ROA %: 1.07% (68% below median its 10-year median of 3.32)
GF Value™: 円4,381.77 vs. price of 円4,045.00 (7.7% below fair value)
Industry Position: 60.7% below the Retail - Cyclical median (#592 of 1134)
No single metric tells the full story. See the TSE:7516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kohnan Shoji Co Ltd is a Japan-based company that is principally engaged in the retail of products related to home improvement, housekeeping, and automotive supplies and accessories. The company operates through three store chains with different styles: Home Center, mainly offering DIY products and household goods to improve consumers' home and life; Homestock, a small-format version of Home Center with original brands EDLP and Lifelex; and Kohnan Pro, providing tools, building materials, and working equipment for professionals. The majority of the company's stores are Home Center stores.
72GF Score
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