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Nepal Insurance CoXNEP:NICL -1.20%95 ROA % is 5.34% as of Apr. 2026, which is 24% below its 10-year median of 7.06. GuruFocus rates XNEP:NICL with a GF Score™ of 95/100 and a GF Value™ of NPR629.87 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 509 Insurance companies, Nepal Insurance Co ranks better than 56.97% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nepal Insurance Co's annualizedNet Income for the quarter that ended in Apr. 2026 was NPR404 Mil.
Nepal Insurance Co's average Total Assets over the quarter that ended in Apr. 2026 was NPR7,564 Mil. Therefore, Nepal Insurance Co's annualized ROA % for the quarter that ended in Apr. 2026 was 5.34%.
The historical rank and industry rank for Nepal Insurance Co's ROA % or its related term are showing as below:
XNEP:NICL'
s ROA % Range Over the Past 10 Years
Min: 3.2 Med: 7.06 Max: 8.43
Current: 3.2
During the past 10 years, Nepal Insurance Co's highest ROA % was 8.43%. The lowest was 3.20%. And the median was 7.06%.
XNEP:NICL's ROA % is ranked better than 56.97% of 509
companies
in the Insurance industry
Industry Median: 2.62
vs XNEP:NICL: 3.20
Nepal Insurance Co (XNEP:NICL) 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 (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 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.
Nepal Insurance Co ROA % Related Terms
Nepal Insurance Co ROA % Historical Data
* Premium members only.
The historical data trend for Nepal Insurance 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 Insurance - Property & Casualty subindustry, Nepal Insurance 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.
Nepal Insurance Co ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, Nepal Insurance Co's ROA % distribution charts can be found below:
* The bar in red indicates where Nepal Insurance 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 (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Nepal Insurance Co (XNEP:NICL) has a ROA % of 5.34% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Nepal Insurance Co and its competitors. This is 24% below median its historical median of 7.06. Over the past decade, Nepal Insurance Co's ROA % has ranged from 3.20 to 8.43. According to the industry distribution chart, Nepal Insurance Co ranks #219 out of 509 companies in the Insurance industry, placing it in the top 43%.
Is Nepal Insurance Co's ROA % too high?
Nepal Insurance Co's current ROA % of 5.34% is 24% below median its 10-year median of 7.06. Over the past 10 years, this metric has ranged from a low of 3.20 to a high of 8.43. The Insurance industry median ROA % is 2.62. Nepal Insurance Co's value of 5.34% is 103.8% above this industry median. Based on the distribution chart, Nepal Insurance Co ranks #219 out of 509 companies in the Insurance industry, which is above the industry midpoint. Overall, Nepal Insurance Co has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nepal Insurance Co's ROA % compare to CB and PGR?
According to the Insurance industry distribution chart, Nepal Insurance Co ranks #219 out of 509 companies for ROA %. This puts Nepal Insurance Co in the upper half of its industry. The industry median ROA % is 2.62. Nepal Insurance Co's value of 5.34% is 103.8% above this benchmark. Historically, Nepal Insurance Co's own ROA % has ranged from 3.20 to 8.43 over the past decade. While the company's 10-year median is 7.06 vs. the industry median of 2.62, Nepal Insurance 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 Insurance company?
The median ROA % among Insurance companies is 2.62, based on 509 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. Nepal Insurance Co's current ROA % of 5.34% is 103.8% 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 Nepal Insurance Co and its competitors. For the Insurance industry, the median ROA % is 2.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nepal Insurance Co's current ROA % is 5.34%, which is 24% below median its own 10-year median of 7.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nepal Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Nepal Insurance Co (XNEP:NICL) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR629.87, compared to a current price of NPR503.00 — trading 20.1% below its estimated fair value. The current ROA % is 5.34%, which is 24% below median its 10-year median of 7.06 and 103.8% above the Insurance industry median of 2.62. Nepal Insurance Co's overall GF Score™ is 95/100 with 1 warning sign 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 Nepal Insurance Co (XNEP:NICL), the current ROA % is 5.34% as of Apr. 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 Nepal Insurance Co (XNEP:NICL) Overvalued in 2026?
Based on GuruFocus' analysis, Nepal Insurance Co stock appears to be undervalued.
The current stock price of NPR503.00 is trading 20.1% below its estimated GF Value™ of NPR629.87.
GuruFocus considers Nepal Insurance Co to be Modestly Undervalued.
Key valuation signals for XNEP:NICL:
ROA %: 5.34% (24% below median its 10-year median of 7.06)
GF Value™: NPR629.87 vs. price of NPR503.00 (20.1% below fair value)
Industry Position: 103.8% above the Insurance median (#219 of 509)
No single metric tells the full story. See the XNEP:NICL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nepal Insurance Co Ltd is a non-life insurance company in Nepal. The company offers motor insurance, property insurance, home insurance, marine insurance, engineering insurance, aviation insurance, agricultural and livestock insurance, and other miscellaneous insurance.
95GF Score
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