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Shivam CementsXNEP:SHIVM -1.07%88 ROA % is 7.99% as of Apr. 2026, which is 23% below its 10-year median of 10.37. GuruFocus rates XNEP:SHIVM with a GF Score™ of 88/100 and a GF Value™ of NPR540.80 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 411 Building Materials companies, Shivam Cements ranks better than 91.24% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shivam Cements's annualizedNet Income for the quarter that ended in Apr. 2026 was NPR1,049 Mil.
Shivam Cements's average Total Assets over the quarter that ended in Apr. 2026 was NPR13,119 Mil. Therefore, Shivam Cements's annualized ROA % for the quarter that ended in Apr. 2026 was 7.99%.
The historical rank and industry rank for Shivam Cements's ROA % or its related term are showing as below:
XNEP:SHIVM'
s ROA % Range Over the Past 10 Years
Min: 2.58 Med: 10.37 Max: 15.53
Current: 12.21
During the past 9 years, Shivam Cements's highest ROA % was 15.53%. The lowest was 2.58%. And the median was 10.37%.
XNEP:SHIVM's ROA % is ranked better than 91.24% of 411
companies
in the Building Materials industry
Industry Median: 2.24
vs XNEP:SHIVM: 12.21
Shivam Cements (XNEP:SHIVM) 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.
Shivam Cements ROA % Related Terms
Shivam Cements ROA % Historical Data
* Premium members only.
The historical data trend for Shivam Cements'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 Building Materials subindustry, Shivam Cements'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.
Shivam Cements ROA % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Shivam Cements's ROA % distribution charts can be found below:
* The bar in red indicates where Shivam Cements'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.
Shivam Cements (XNEP:SHIVM) has a ROA % of 7.99% 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 Shivam Cements and its competitors. This is 23% below median its historical median of 10.37. Over the past decade, Shivam Cements' ROA % has ranged from 2.58 to 15.53. According to the industry distribution chart, Shivam Cements ranks #36 out of 411 companies in the Building Materials industry, placing it in the top 8.8%.
Is Shivam Cements' ROA % too high?
Shivam Cements' current ROA % of 7.99% is 23% below median its 10-year median of 10.37. Over the past 10 years, this metric has ranged from a low of 2.58 to a high of 15.53. The Building Materials industry median ROA % is 2.24. Shivam Cements' value of 7.99% is 256.7% above this industry median. Based on the distribution chart, Shivam Cements ranks #36 out of 411 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Shivam Cements has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shivam Cements' ROA % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Shivam Cements ranks #36 out of 411 companies for ROA %. This places Shivam Cements in the top 9% of its industry — outperforming the majority of peers. The industry median ROA % is 2.24. Shivam Cements' value of 7.99% is 256.7% above this benchmark. Historically, Shivam Cements' own ROA % has ranged from 2.58 to 15.53 over the past decade. While the company's 10-year median is 10.37 vs. the industry median of 2.24, Shivam Cements 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 Building Materials company?
The median ROA % among Building Materials companies is 2.24, based on 411 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. Shivam Cements's current ROA % of 7.99% is 256.7% 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 Shivam Cements and its competitors. For the Building Materials industry, the median ROA % is 2.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shivam Cements's current ROA % is 7.99%, which is 23% below median its own 10-year median of 10.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shivam Cements stock overvalued right now?
Based on GuruFocus' analysis, Shivam Cements (XNEP:SHIVM) is currently considered Modestly Overvalued. The stock's GF Value™ is NPR540.80, compared to a current price of NPR656.00 — trading 21.3% above its estimated fair value. The current ROA % is 7.99%, which is 23% below median its 10-year median of 10.37 and 256.7% above the Building Materials industry median of 2.24. Shivam Cements' overall GF Score™ is 88/100 with 4 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 Shivam Cements (XNEP:SHIVM), the current ROA % is 7.99% 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 Shivam Cements (XNEP:SHIVM) Overvalued in 2026?
Based on GuruFocus' analysis, Shivam Cements stock appears to be overvalued.
The current stock price of NPR656.00 is trading 21.3% above its estimated GF Value™ of NPR540.80.
GuruFocus considers Shivam Cements to be Modestly Overvalued.
Key valuation signals for XNEP:SHIVM:
ROA %: 7.99% (23% below median its 10-year median of 10.37)
GF Value™: NPR540.80 vs. price of NPR656.00 (21.3% above fair value)
Industry Position: 256.7% above the Building Materials median (#36 of 411)
No single metric tells the full story. See the XNEP:SHIVM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shivam Cements Ltd is a Nepal based company engaged in manufacturing of cement and clinker from its self owned limestone quarries. The main product of the company include the Ordinary Portland Cement. Its products include OPC cement 43 Grade and OPC cement 53 grade.
88GF Score
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