ROYAL HOLDINGS CoTSE:8179 -0.57%75 ROA % is 2.73% as of Mar. 2026, which is 1% above its 10-year median of 2.71. GuruFocus rates TSE:8179 with a GF Score™ of 75/100 and a GF Value™ of 円1,474.05 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 365 Restaurants companies, ROYAL HOLDINGS Co ranks better than 63.84% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. ROYAL HOLDINGS Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円3,720 Mil.
ROYAL HOLDINGS Co's average Total Assets over the quarter that ended in Mar. 2026 was 円136,278 Mil. Therefore, ROYAL HOLDINGS Co's annualized ROA % for the quarter that ended in Mar. 2026 was 2.73%.
The historical rank and industry rank for ROYAL HOLDINGS Co's ROA % or its related term are showing as below:
TSE:8179'
s ROA % Range Over the Past 10 Years
Min: -26.42 Med: 2.71 Max: 4.67
Current: 4.17
During the past 13 years, ROYAL HOLDINGS Co's highest ROA % was 4.67%. The lowest was -26.42%. And the median was 2.71%.
TSE:8179's ROA % is ranked better than 63.84% of 365
companies
in the Restaurants industry
Industry Median: 2.22
vs TSE:8179: 4.17
ROYAL HOLDINGS Co (TSE:8179) 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.
ROYAL HOLDINGS Co ROA % Related Terms
ROYAL HOLDINGS Co ROA % Historical Data
* Premium members only.
The historical data trend for ROYAL HOLDINGS 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 Restaurants subindustry, ROYAL HOLDINGS 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.
ROYAL HOLDINGS Co ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, ROYAL HOLDINGS Co's ROA % distribution charts can be found below:
* The bar in red indicates where ROYAL HOLDINGS 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.
ROYAL HOLDINGS Co (TSE:8179) has a ROA % of 2.73% 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 ROYAL HOLDINGS Co and its competitors. This is near median its historical median of 2.71. According to the industry distribution chart, ROYAL HOLDINGS Co ranks #132 out of 365 companies in the Restaurants industry, placing it in the top 36.2%.
Is ROYAL HOLDINGS Co's ROA % too high?
ROYAL HOLDINGS Co's current ROA % of 2.73% is near median its 10-year median of 2.71. The Restaurants industry median ROA % is 2.22. ROYAL HOLDINGS Co's value of 2.73% is 23% above this industry median. Based on the distribution chart, ROYAL HOLDINGS Co ranks #132 out of 365 companies in the Restaurants industry, which is above the industry midpoint. Overall, ROYAL HOLDINGS Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ROYAL HOLDINGS Co's ROA % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, ROYAL HOLDINGS Co ranks #132 out of 365 companies for ROA %. This puts ROYAL HOLDINGS Co in the upper half of its industry. The industry median ROA % is 2.22. ROYAL HOLDINGS Co's value of 2.73% is 23% above this benchmark. While the company's 10-year median is 2.71 vs. the industry median of 2.22, ROYAL HOLDINGS 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 Restaurants company?
The median ROA % among Restaurants companies is 2.22, based on 365 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. ROYAL HOLDINGS Co's current ROA % of 2.73% is 23% 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 ROYAL HOLDINGS Co and its competitors. For the Restaurants industry, the median ROA % is 2.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ROYAL HOLDINGS Co's current ROA % is 2.73%, which is near median its own 10-year median of 2.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ROYAL HOLDINGS Co stock overvalued right now?
Based on GuruFocus' analysis, ROYAL HOLDINGS Co (TSE:8179) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,474.05, compared to a current price of 円1,221.00 — trading 17.2% below its estimated fair value. The current ROA % is 2.73%, which is near median its 10-year median of 2.71 and 23% above the Restaurants industry median of 2.22. ROYAL HOLDINGS Co's overall GF Score™ is 75/100 with 2 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 ROYAL HOLDINGS Co (TSE:8179), the current ROA % is 2.73% 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 ROYAL HOLDINGS Co (TSE:8179) Overvalued in 2026?
Based on GuruFocus' analysis, ROYAL HOLDINGS Co stock appears to be undervalued.
The current stock price of 円1,221.00 is trading 17.2% below its estimated GF Value™ of 円1,474.05.
GuruFocus considers ROYAL HOLDINGS Co to be Modestly Undervalued.
Key valuation signals for TSE:8179:
ROA %: 2.73% (near median its 10-year median of 2.71)
GF Value™: 円1,474.05 vs. price of 円1,221.00 (17.2% below fair value)
Industry Position: 23% above the Restaurants median (#132 of 365)
No single metric tells the full story. See the TSE:8179 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ROYAL HOLDINGS Co Ltd operates five core businesses in Japan: Restaurants, Hotels, Contract Food Services, In-Flight Catering, and Food Manufacturing. Royal's Restaurants business operates various brands, including Royal Host, Tenya, Cowboy Family, Shakey's, Sizzler, Hananoki, Royal Garden Cafe, pinkberry, The Third Cafe, and Rose Bakery. The company's Hotel business operates Richmond Hotels. Contract Food Services provides food in airports, highway service areas, department stores, and convention centers. In-Flight Catering provides meals for dozens of airlines all over the world. The Food Manufacturing business has two central kitchens in Japan that serve the company's other businesses. The group has four segments: restaurant business, contract business, Hotel Business, & Food Business.
75GF Score
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