Kensoh CoTSE:7939 +0.17%74 ROA % is 5.58% as of Mar. 2026, which is 58% above its 10-year median of 3.53. GuruFocus rates TSE:7939 with a GF Score™ of 74/100 and a GF Value™ of 円579.20 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,096 Business Services companies, Kensoh Co ranks better than 52.74% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kensoh Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円301 Mil.
Kensoh Co's average Total Assets over the quarter that ended in Mar. 2026 was 円5,396 Mil. Therefore, Kensoh Co's annualized ROA % for the quarter that ended in Mar. 2026 was 5.58%.
The historical rank and industry rank for Kensoh Co's ROA % or its related term are showing as below:
TSE:7939'
s ROA % Range Over the Past 10 Years
Min: 2.8 Med: 3.53 Max: 5.47
Current: 3.8
During the past 13 years, Kensoh Co's highest ROA % was 5.47%. The lowest was 2.80%. And the median was 3.53%.
TSE:7939's ROA % is ranked better than 52.74% of 1096
companies
in the Business Services industry
Industry Median: 3.455
vs TSE:7939: 3.80
Kensoh Co (TSE:7939) 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.
Kensoh Co ROA % Related Terms
Kensoh Co ROA % Historical Data
* Premium members only.
The historical data trend for Kensoh 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 Specialty Business Services subindustry, Kensoh 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.
Kensoh Co ROA % vs Business Services Industry
For the Business Services industry and Industrials sector, Kensoh Co's ROA % distribution charts can be found below:
* The bar in red indicates where Kensoh 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 two times the semi-annual (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Kensoh Co (TSE:7939) has a ROA % of 5.58% 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 Kensoh Co and its competitors. This is 58% above median its historical median of 3.53. Over the past decade, Kensoh Co's ROA % has ranged from 2.80 to 5.47. According to the industry distribution chart, Kensoh Co ranks #518 out of 1096 companies in the Business Services industry, placing it in the top 47.3%.
Is Kensoh Co's ROA % too high?
Kensoh Co's current ROA % of 5.58% is 58% above median its 10-year median of 3.53. Over the past 10 years, this metric has ranged from a low of 2.80 to a high of 5.47. The Business Services industry median ROA % is 3.46. Kensoh Co's value of 5.58% is 61.5% above this industry median. Based on the distribution chart, Kensoh Co ranks #518 out of 1096 companies in the Business Services industry, which is above the industry midpoint. Overall, Kensoh Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kensoh Co's ROA % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Kensoh Co ranks #518 out of 1096 companies for ROA %. This puts Kensoh Co in the upper half of its industry. The industry median ROA % is 3.46. Kensoh Co's value of 5.58% is 61.5% above this benchmark. Historically, Kensoh Co's own ROA % has ranged from 2.80 to 5.47 over the past decade. While the company's 10-year median is 3.53 vs. the industry median of 3.46, Kensoh 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 Business Services company?
The median ROA % among Business Services companies is 3.46, based on 1,096 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. Kensoh Co's current ROA % of 5.58% is 61.5% 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 Kensoh Co and its competitors. For the Business Services industry, the median ROA % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kensoh Co's current ROA % is 5.58%, which is 58% above median its own 10-year median of 3.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kensoh Co stock overvalued right now?
Based on GuruFocus' analysis, Kensoh Co (TSE:7939) is currently considered Fairly Valued. The stock's GF Value™ is 円579.20, compared to a current price of 円576.00 — trading 0.6% below its estimated fair value. The current ROA % is 5.58%, which is 58% above median its 10-year median of 3.53 and 61.5% above the Business Services industry median of 3.46. Kensoh Co's overall GF Score™ is 74/100 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 Kensoh Co (TSE:7939), the current ROA % is 5.58% 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 Kensoh Co (TSE:7939) Overvalued in 2026?
Based on GuruFocus' analysis, Kensoh Co stock appears to be undervalued.
The current stock price of 円576.00 is trading 0.6% below its estimated GF Value™ of 円579.20.
GuruFocus considers Kensoh Co to be Fairly Valued.
Key valuation signals for TSE:7939:
ROA %: 5.58% (58% above median its 10-year median of 3.53)
GF Value™: 円579.20 vs. price of 円576.00 (0.6% below fair value)
Industry Position: 61.5% above the Business Services median (#518 of 1096)
No single metric tells the full story. See the TSE:7939 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kensoh Co Ltd is a Japanese company engaged in manufacturing and selling metal sign products for corporations. Its products include corporate names, billboards, and nameplates for buildings. The company also manufactures and wholesales machinery to create metal signs.
74GF Score
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