Smart Asia Chemical BhdXKLS:0306 +2.94%31 ROA % is 7.57% as of Mar. 2026, which is 10% below its 10-year median of 8.40. GuruFocus rates XKLS:0306 with a GF Score™ of 31/100. The stock has 7 warning signs investors should review. Among 1,613 Chemicals companies, Smart Asia Chemical Bhd ranks worse than 57.16% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Smart Asia Chemical Bhd's annualizedNet Income for the quarter that ended in Mar. 2026 was RM12.73 Mil.
Smart Asia Chemical Bhd's average Total Assets over the quarter that ended in Mar. 2026 was RM168.19 Mil. Therefore, Smart Asia Chemical Bhd's annualized ROA % for the quarter that ended in Mar. 2026 was 7.57%.
The historical rank and industry rank for Smart Asia Chemical Bhd's ROA % or its related term are showing as below:
XKLS:0306'
s ROA % Range Over the Past 10 Years
Min: 0.64 Med: 8.4 Max: 13.5
Current: 2.09
During the past 6 years, Smart Asia Chemical Bhd's highest ROA % was 13.50%. The lowest was 0.64%. And the median was 8.40%.
XKLS:0306's ROA % is ranked worse than 57.16% of 1613
companies
in the Chemicals industry
Industry Median: 2.9
vs XKLS:0306: 2.09
Smart Asia Chemical Bhd (XKLS:0306) 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.
* 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 Chemicals subindustry, Smart Asia Chemical Bhd'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.
Smart Asia Chemical Bhd ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Smart Asia Chemical Bhd's ROA % distribution charts can be found below:
* The bar in red indicates where Smart Asia Chemical Bhd'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.
Smart Asia Chemical Bhd (XKLS:0306) has a ROA % of 7.57% 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 Smart Asia Chemical Bhd and its competitors. This is 10% below median its historical median of 8.40. Over the past decade, Smart Asia Chemical Bhd's ROA % has ranged from 0.64 to 13.50. According to the industry distribution chart, Smart Asia Chemical Bhd ranks #922 out of 1613 companies in the Chemicals industry, placing it in the top 57.2%.
Is Smart Asia Chemical Bhd's ROA % too high?
Smart Asia Chemical Bhd's current ROA % of 7.57% is 10% below median its 10-year median of 8.40. Over the past 10 years, this metric has ranged from a low of 0.64 to a high of 13.50. The Chemicals industry median ROA % is 2.90. Smart Asia Chemical Bhd's value of 7.57% is 161% above this industry median. Based on the distribution chart, Smart Asia Chemical Bhd ranks #922 out of 1613 companies in the Chemicals industry, which is below the industry midpoint. Overall, Smart Asia Chemical Bhd has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Smart Asia Chemical Bhd's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Smart Asia Chemical Bhd ranks #922 out of 1613 companies for ROA %. This places Smart Asia Chemical Bhd in the lower half of its industry. The industry median ROA % is 2.90. Smart Asia Chemical Bhd's value of 7.57% is 161% above this benchmark. Historically, Smart Asia Chemical Bhd's own ROA % has ranged from 0.64 to 13.50 over the past decade. While the company's 10-year median is 8.40 vs. the industry median of 2.90, Smart Asia Chemical Bhd 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 Chemicals company?
The median ROA % among Chemicals companies is 2.90, based on 1,613 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. Smart Asia Chemical Bhd's current ROA % of 7.57% is 161% 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 Smart Asia Chemical Bhd and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart Asia Chemical Bhd's current ROA % is 7.57%, which is 10% below median its own 10-year median of 8.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart Asia Chemical Bhd stock overvalued right now?
Smart Asia Chemical Bhd (XKLS:0306) has a current ROA % of 7.57%. The current ROA % is 7.57%, which is 10% below median its 10-year median of 8.40 and 161% above the Chemicals industry median of 2.90. Smart Asia Chemical Bhd's overall GF Score™ is 31/100 with 7 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 Smart Asia Chemical Bhd (XKLS:0306), the current ROA % is 7.57% 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.
Smart Asia Chemical Bhd is an investment holding company. Through its subsidiaries, it is involved in the development, manufacturing, distribution, and sale of decorative paints and protective coatings for household and industrial applications. Also involved in the development, manufacturing, distribution and sale of related products, namely colourants, and binding and coating chemicals; sale and trading of painting tools and accessories, aerosol spray paints and other related products to complement decorative paints and protective coatings offerings, ODM services of decorative paints, protective coatings as well as binding and coating chemicals for third party brand owners. Company has three segments manufacturing, sale and trading and other.
31GF Score
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