TSE:7952's ROA % is ranked worse than 57.33% of 853
companies
in the Travel & Leisure industry
Industry Median: 2.37
vs TSE:7952: 1.51
Kawai Musical Instruments Manufacturing Co (TSE:7952) 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.
Kawai Musical Instruments Manufacturing Co ROA % Related Terms
Kawai Musical Instruments Manufacturing Co ROA % Historical 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.
Kawai Musical Instruments Manufacturing Co ROA % Chart
Kawai Musical Instruments Manufacturing Co Annual Data
* 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.
Kawai Musical Instruments Manufacturing Co ROA % vs Travel & Leisure Industry
* 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.
Kawai Musical Instruments Manufacturing Co (TSE:7952) has a ROA % of 3.03% 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 Kawai Musical Instruments Manufacturing Co and its competitors. This is 20% below median its historical median of 3.80. Over the past decade, Kawai Musical Instruments Manufacturing Co's ROA % has ranged from 0.55 to 7.82. According to the industry distribution chart, Kawai Musical Instruments Manufacturing Co ranks #489 out of 853 companies in the Travel & Leisure industry, placing it in the top 57.3%.
Is Kawai Musical Instruments Manufacturing Co's ROA % too high?
Kawai Musical Instruments Manufacturing Co's current ROA % of 3.03% is 20% below median its 10-year median of 3.80. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 7.82. The Travel & Leisure industry median ROA % is 2.37. Kawai Musical Instruments Manufacturing Co's value of 3.03% is 27.8% above this industry median. Based on the distribution chart, Kawai Musical Instruments Manufacturing Co ranks #489 out of 853 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Kawai Musical Instruments Manufacturing Co has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawai Musical Instruments Manufacturing Co's ROA % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Kawai Musical Instruments Manufacturing Co ranks #489 out of 853 companies for ROA %. This places Kawai Musical Instruments Manufacturing Co in the lower half of its industry. The industry median ROA % is 2.37. Kawai Musical Instruments Manufacturing Co's value of 3.03% is 27.8% above this benchmark. Historically, Kawai Musical Instruments Manufacturing Co's own ROA % has ranged from 0.55 to 7.82 over the past decade. While the company's 10-year median is 3.80 vs. the industry median of 2.37, Kawai Musical Instruments Manufacturing 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 Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.37, based on 853 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. Kawai Musical Instruments Manufacturing Co's current ROA % of 3.03% is 27.8% 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 Kawai Musical Instruments Manufacturing Co and its competitors. For the Travel & Leisure industry, the median ROA % is 2.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawai Musical Instruments Manufacturing Co's current ROA % is 3.03%, which is 20% below median its own 10-year median of 3.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawai Musical Instruments Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Kawai Musical Instruments Manufacturing Co (TSE:7952) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,733.98, compared to a current price of 円3,210.00 — trading 17.4% above its estimated fair value. The current ROA % is 3.03%, which is 20% below median its 10-year median of 3.80 and 27.8% above the Travel & Leisure industry median of 2.37. Kawai Musical Instruments Manufacturing Co's overall GF Score™ is 64/100 with 11 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 Kawai Musical Instruments Manufacturing Co (TSE:7952), the current ROA % is 3.03% 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 Kawai Musical Instruments Manufacturing Co (TSE:7952) Overvalued in 2026?
Based on GuruFocus' analysis, Kawai Musical Instruments Manufacturing Co stock appears to be overvalued.
The current stock price of 円3,210.00 is trading 17.4% above its estimated GF Value™ of 円2,733.98.
GuruFocus considers Kawai Musical Instruments Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSE:7952:
ROA %: 3.03% (20% below median its 10-year median of 3.80)
GF Value™: 円2,733.98 vs. price of 円3,210.00 (17.4% above fair value)
Industry Position: 27.8% above the Travel & Leisure median (#489 of 853)
No single metric tells the full story. See the TSE:7952 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawai Musical Instruments Manufacturing Co Business Description
Kawai Musical Instruments Manufacturing Co Ltd is a Japan-based musical instrument manufacturer. The company is mainly engaged in manufacturing and sales of musical instruments, precision metals, wood products, and electronic devices. Products offered by the company include grand pianos, upright pianos, digital pianos, hybrid pianos, and anytime pianos. It sells its products under the brand name Philosophy, Legacy, Artists, Competitions, and Institutions. Kawai has world-wide sales networks, it distributes its products in Europe, America, Asia and Oceania, Africa and the Middle East. The company is also engaged in the development and sales of software and operations of music schools, and gymnastics schools.
64GF Score
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