Sekichu Co (TSE:9976) ROA %: 0.50% (As of Feb. 2026) — 75% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:9976 Sekichu Co Ltd TSE:9976
69 GF Score
Price 円1,073.00
GF Value 円1,197.54
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Sekichu Co ROA %?

Sekichu Co TSE:9976 +1.04% 69 ROA % is 0.50% as of Feb. 2026, which is 75% below its 10-year median of 2.00. GuruFocus rates TSE:9976 with a GF Score™ of 69/100 and a GF Value™ of 円1,197.54 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,130 Retail - Cyclical companies, Sekichu Co ranks worse than 56.9% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sekichu Co's annualized Net Income for the quarter that ended in Feb. 2026 was 円119 Mil. Sekichu Co's average Total Assets over the quarter that ended in Feb. 2026 was 円23,920 Mil. Therefore, Sekichu Co's annualized ROA % for the quarter that ended in Feb. 2026 was 0.50%.

The historical rank and industry rank for Sekichu Co's ROA % or its related term are showing as below:

TSE:9976' s ROA % Range Over the Past 10 Years
Min: -8.64   Med: 2   Max: 3.52
Current: 1.84

During the past 13 years, Sekichu Co's highest ROA % was 3.52%. The lowest was -8.64%. And the median was 2.00%.

TSE:9976's ROA % is ranked worse than
56.9% of 1130 companies
in the Retail - Cyclical industry
Industry Median: 2.73 vs TSE:9976: 1.84

Sekichu Co  (TSE:9976) 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 bank’s 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:

ROA %(Q: Feb. 2026 )
=Net Income/Total Assets
=119.48/23920.238
=(Net Income / Revenue)*(Revenue / Total Assets)
=(119.48 / 32215.36)*(32215.36 / 23920.238)
=Net Margin %*Asset Turnover
=0.37 %*1.3468
=0.50 %

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.


Sekichu Co ROA % Related Terms


Sekichu Co ROA % Historical Data

* Premium members only.

The historical data trend for Sekichu 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.

Sekichu Co ROA % Chart

Sekichu Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.00 2.59 2.67 2.29 1.70

Sekichu Co Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.53 1.97 0.70 0.50 4.23

TSE:9976 vs HD, LOW, FND: ROA % Comparison

For the Home Improvement Retail subindustry, Sekichu 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.


Sekichu Co ROA % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Sekichu Co's ROA % distribution charts can be found below:

* The bar in red indicates where Sekichu Co's ROA % falls into.


TSE:9976
69GF Score
Sekichu Co Ltd TSE:9976
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sekichu Co ROA % Calculation

Sekichu Co's annualized ROA % for the fiscal year that ended in Feb. 2026 is calculated as:

ROA %=Net Income (A: Feb. 2026 )/( (Total Assets (A: Feb. 2025 )+Total Assets (A: Feb. 2026 ))/ count )
=400.086/( (23515.815+23438.977)/ 2 )
=400.086/23477.396
=1.70 %

Sekichu Co's annualized ROA % for the quarter that ended in Feb. 2026 is calculated as:

ROA %=Net Income (Q: Feb. 2026 )/( (Total Assets (Q: Nov. 2025 )+Total Assets (Q: Feb. 2026 ))/ count )
=119.48/( (24401.499+23438.977)/ 2 )
=119.48/23920.238
=0.50 %

* 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.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 0.50% mean?
Sekichu Co (TSE:9976) has a ROA % of 0.50% 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 Sekichu Co and its competitors. This is 75% below median its historical median of 2.00. According to the industry distribution chart, Sekichu Co ranks #643 out of 1130 companies in the Retail - Cyclical industry, placing it in the top 56.9%.
Is Sekichu Co's ROA % too high?
Sekichu Co's current ROA % of 0.50% is 75% below median its 10-year median of 2.00. The Retail - Cyclical industry median ROA % is 2.73. Sekichu Co's value of 0.50% is 81.7% below this industry median. Based on the distribution chart, Sekichu Co ranks #643 out of 1130 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Sekichu Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sekichu Co's ROA % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Sekichu Co ranks #643 out of 1130 companies for ROA %. This places Sekichu Co in the lower half of its industry. The industry median ROA % is 2.73. Sekichu Co's value of 0.50% is 81.7% below this benchmark. While the company's 10-year median is 2.00 vs. the industry median of 2.73, Sekichu 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 1,130 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. Sekichu Co's current ROA % of 0.50% is 81.7% 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 Sekichu 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. Sekichu Co's current ROA % is 0.50%, which is 75% below median its own 10-year median of 2.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sekichu Co stock overvalued right now?
Based on GuruFocus' analysis, Sekichu Co (TSE:9976) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,197.54, compared to a current price of 円1,073.00 — trading 10.4% below its estimated fair value. The current ROA % is 0.50%, which is 75% below median its 10-year median of 2.00 and 81.7% below the Retail - Cyclical industry median of 2.73. Sekichu Co's overall GF Score™ is 69/100 with 3 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 Sekichu Co (TSE:9976), the current ROA % is 0.50% 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 Sekichu Co (TSE:9976) Overvalued in 2026?

Based on GuruFocus' analysis, Sekichu Co stock appears to be undervalued. The current stock price of 円1,073.00 is trading 10.4% below its estimated GF Value™ of 円1,197.54. GuruFocus considers Sekichu Co to be Modestly Undervalued.

Key valuation signals for TSE:9976:

  • ROA %: 0.50% (75% below median its 10-year median of 2.00)
  • GF Value™: 円1,197.54 vs. price of 円1,073.00 (10.4% below fair value)
  • GF Score™: 69/100 with 3 warning signs
  • Industry Position: 81.7% below the Retail - Cyclical median (#643 of 1130)

No single metric tells the full story. See the TSE:9976 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sekichu Co Business Description

Address 4531-1 Kuragano-cho, Gunma Prefecture, Takasaki, JPN, 370-1201
Sekichu Co Ltd operates do-it-yourself stores, which provide wood, household items, housing materials, paints, gardening, plants, exteriors, and pet supplies. It also provides utensils, car articles, bicycles, and sports and leisure-time articles. The company operates in two segments, which include the Home Center Business handles a wide range of lifestyle-related products, including DIY supplies, household goods, car accessories, bicycles, leisure goods, and more. The Real Estate Leasing Business involves leasing real estate owned and managed by the company, as well as planning, constructing, and managing commercial facilities.
69GF Score

Get the complete analysis for TSE:9976

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,073.00
Price
円1,197.54
GF Value