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The Royal HotelTSE:9713 +0.33%67 ROA % is 3.96% as of Mar. 2026, which is 29% above its 10-year median of 3.07. GuruFocus rates TSE:9713 with a GF Score™ of 67/100 and a GF Value™ of 円1,079.50 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 857 Travel & Leisure companies, The Royal Hotel ranks better than 54.14% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Royal Hotel's annualizedNet Income for the quarter that ended in Mar. 2026 was 円1,542 Mil.
The Royal Hotel's average Total Assets over the quarter that ended in Mar. 2026 was 円38,925 Mil. Therefore, The Royal Hotel's annualized ROA % for the quarter that ended in Mar. 2026 was 3.96%.
The historical rank and industry rank for The Royal Hotel's ROA % or its related term are showing as below:
TSE:9713'
s ROA % Range Over the Past 10 Years
Min: -14.96 Med: 3.07 Max: 28.94
Current: 3.02
During the past 13 years, The Royal Hotel's highest ROA % was 28.94%. The lowest was -14.96%. And the median was 3.07%.
TSE:9713's ROA % is ranked better than 54.14% of 857
companies
in the Travel & Leisure industry
Industry Median: 2.4
vs TSE:9713: 3.02
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.
The Royal Hotel ROA % Related Terms
The Royal Hotel ROA % Historical Data
* Premium members only.
The historical data trend for The Royal Hotel'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 Lodging subindustry, The Royal Hotel'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.
The Royal Hotel ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Royal Hotel's ROA % distribution charts can be found below:
* The bar in red indicates where The Royal Hotel'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.
The Royal Hotel (TSE:9713) has a ROA % of 3.96% 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 The Royal Hotel and its competitors. This is 29% above median its historical median of 3.07. According to the industry distribution chart, The Royal Hotel ranks #393 out of 857 companies in the Travel & Leisure industry, placing it in the top 45.9%.
Is The Royal Hotel's ROA % too high?
The Royal Hotel's current ROA % of 3.96% is 29% above median its 10-year median of 3.07. The Travel & Leisure industry median ROA % is 2.40. The Royal Hotel's value of 3.96% is 65% above this industry median. Based on the distribution chart, The Royal Hotel ranks #393 out of 857 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, The Royal Hotel has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Royal Hotel's ROA % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Royal Hotel ranks #393 out of 857 companies for ROA %. This puts The Royal Hotel in the upper half of its industry. The industry median ROA % is 2.40. The Royal Hotel's value of 3.96% is 65% above this benchmark. While the company's 10-year median is 3.07 vs. the industry median of 2.40, The Royal Hotel 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 2.40, based on 857 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. The Royal Hotel's current ROA % of 3.96% is 65% 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 The Royal Hotel and its competitors. For the Travel & Leisure industry, the median ROA % is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Royal Hotel's current ROA % is 3.96%, which is 29% above median its own 10-year median of 3.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Royal Hotel stock overvalued right now?
Based on GuruFocus' analysis, The Royal Hotel (TSE:9713) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,079.50, compared to a current price of 円905.00 — trading 16.2% below its estimated fair value. The current ROA % is 3.96%, which is 29% above median its 10-year median of 3.07 and 65% above the Travel & Leisure industry median of 2.40. The Royal Hotel's overall GF Score™ is 67/100 with 5 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 The Royal Hotel (TSE:9713), the current ROA % is 3.96% 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 The Royal Hotel (TSE:9713) Overvalued in 2026?
Based on GuruFocus' analysis, The Royal Hotel stock appears to be undervalued.
The current stock price of 円905.00 is trading 16.2% below its estimated GF Value™ of 円1,079.50.
GuruFocus considers The Royal Hotel to be Modestly Undervalued.
Key valuation signals for TSE:9713:
ROA %: 3.96% (29% above median its 10-year median of 3.07)
GF Value™: 円1,079.50 vs. price of 円905.00 (16.2% below fair value)
Industry Position: 65% above the Travel & Leisure median (#393 of 857)
No single metric tells the full story. See the TSE:9713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Royal Hotel Ltd is a Japanese company engaged in the hotel industry. The company is a hotel operator providing accommodation, dining, and spa facilities. The company has developed eleven hotels around Hiroshima, Tokyo, and Kyoto.
67GF Score
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