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Butwal Power CoXNEP:BPCL -0.30%85 ROA % is 6.88% as of Jan. 2026, which is 52% above its 10-year median of 4.53. GuruFocus rates XNEP:BPCL with a GF Score™ of 85/100 and a GF Value™ of NPR725.85 (Fairly Valued). The stock has 2 warning signs investors should review. Among 451 Utilities - Independent Power Producers companies, Butwal Power Co ranks better than 67.63% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Butwal Power Co's annualizedNet Income for the quarter that ended in Jan. 2026 was NPR562 Mil.
Butwal Power Co's average Total Assets over the quarter that ended in Jan. 2026 was NPR8,176 Mil. Therefore, Butwal Power Co's annualized ROA % for the quarter that ended in Jan. 2026 was 6.88%.
The historical rank and industry rank for Butwal Power Co's ROA % or its related term are showing as below:
XNEP:BPCL'
s ROA % Range Over the Past 10 Years
Min: -0.04 Med: 4.53 Max: 11.27
Current: 3.27
During the past 13 years, Butwal Power Co's highest ROA % was 11.27%. The lowest was -0.04%. And the median was 4.53%.
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 (Jan. 2026) net income data. The Revenue data used here is four times the quarterly (Jan. 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.
Butwal Power Co ROA % Related Terms
Butwal Power Co ROA % Historical Data
* Premium members only.
The historical data trend for Butwal Power 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 Utilities - Renewable subindustry, Butwal Power 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.
Butwal Power Co ROA % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Butwal Power Co's ROA % distribution charts can be found below:
* The bar in red indicates where Butwal Power 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 (Jan. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Butwal Power Co (XNEP:BPCL) has a ROA % of 6.88% as of Jan. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Butwal Power Co and its competitors. This is 52% above median its historical median of 4.53. According to the industry distribution chart, Butwal Power Co ranks #146 out of 451 companies in the Utilities - Independent Power Producers industry, placing it in the top 32.4%.
Is Butwal Power Co's ROA % too high?
Butwal Power Co's current ROA % of 6.88% is 52% above median its 10-year median of 4.53. The Utilities - Independent Power Producers industry median ROA % is 1.20. Butwal Power Co's value of 6.88% is 473.3% above this industry median. Based on the distribution chart, Butwal Power Co ranks #146 out of 451 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Butwal Power Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Butwal Power Co's ROA % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Butwal Power Co ranks #146 out of 451 companies for ROA %. This puts Butwal Power Co in the upper half of its industry. The industry median ROA % is 1.20. Butwal Power Co's value of 6.88% is 473.3% above this benchmark. While the company's 10-year median is 4.53 vs. the industry median of 1.20, Butwal Power 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 an Utilities - Independent Power Producers company?
The median ROA % among Utilities - Independent Power Producers companies is 1.20, based on 451 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. Butwal Power Co's current ROA % of 6.88% is 473.3% 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 Butwal Power Co and its competitors. For the Utilities - Independent Power Producers industry, the median ROA % is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Butwal Power Co's current ROA % is 6.88%, which is 52% above median its own 10-year median of 4.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Butwal Power Co stock overvalued right now?
Based on GuruFocus' analysis, Butwal Power Co (XNEP:BPCL) is currently considered Fairly Valued. The stock's GF Value™ is NPR725.85, compared to a current price of NPR673.00 — trading 7.3% below its estimated fair value. The current ROA % is 6.88%, which is 52% above median its 10-year median of 4.53 and 473.3% above the Utilities - Independent Power Producers industry median of 1.20. Butwal Power Co's overall GF Score™ is 85/100 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 Butwal Power Co (XNEP:BPCL), the current ROA % is 6.88% as of Jan. 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 Butwal Power Co (XNEP:BPCL) Overvalued in 2026?
Based on GuruFocus' analysis, Butwal Power Co stock appears to be undervalued.
The current stock price of NPR673.00 is trading 7.3% below its estimated GF Value™ of NPR725.85.
GuruFocus considers Butwal Power Co to be Fairly Valued.
Key valuation signals for XNEP:BPCL:
ROA %: 6.88% (52% above median its 10-year median of 4.53)
GF Value™: NPR725.85 vs. price of NPR673.00 (7.3% below fair value)
Industry Position: 473.3% above the Utilities - Independent Power Producers median (#146 of 451)
No single metric tells the full story. See the XNEP:BPCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Butwal Power Co Ltd is engaged in generation and distribution of electricity. The company is engaged in the development, operation, and maintenance of hydropower plants, engineering and design consultancy of hydropower and infrastructure projects, and manufacturing and repair of hydro-mechanical and electro-mechanical equipment for power plants through its subsidiary companies.
85GF Score
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