ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kansai Paint Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.90%.
As of today (2026-06-25), Kansai Paint Co's WACC % is 3.26%. Kansai Paint Co's ROC % is 5.30% (calculated using TTM income statement data).
Kansai Paint Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Kansai Paint Co (OTCPK:KPTCY) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Kansai Paint Co's WACC % is 3.26%. Kansai Paint Co's ROC % is 5.30% (calculated using TTM income statement data).
Kansai Paint Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.
Kansai Paint Co ROC % Related Terms
Kansai Paint Co ROC % Historical Data
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The historical data trend for Kansai Paint Co's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Kansai Paint Co (KPTCY) has a ROC % of 1.90% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kansai Paint Co and its competitors.
Is Kansai Paint Co's ROC % too high?
Kansai Paint Co's current ROC % is 1.90%. The Chemicals industry median ROC % is 4.46. Kansai Paint Co's value of 1.90% is 57.4% below this industry median. Overall, Kansai Paint Co has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Kansai Paint Co's ROC % compare to LIN and SHW?
Kansai Paint Co's ROC % of 1.90% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. Kansai Paint Co's value of 1.90% is 57.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,585 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kansai Paint Co's current ROC % of 1.90% is 57.4% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kansai Paint Co and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kansai Paint Co's current ROC % is 1.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kansai Paint Co stock overvalued right now?
Kansai Paint Co (KPTCY) has a current ROC % of 1.90%. The stock's GF Value™ is $8.29, compared to a current price of $8.02 — trading 3.3% below its estimated fair value. The current ROC % is 1.90% and 57.4% below the Chemicals industry median of 4.46. Kansai Paint Co's overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Kansai Paint Co (KPTCY), the current ROC % is 1.90% 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.
Is Kansai Paint Co (KPTCY) Overvalued in 2026?
Based on GuruFocus' analysis, Kansai Paint Co stock appears to be undervalued.
The current stock price of $8.02 is trading 3.3% below its estimated GF Value™ of $8.29.
Key valuation signals for KPTCY:
ROC %: 1.90%
GF Value™: $8.29 vs. price of $8.02 (3.3% below fair value)
Industry Position: 57.4% below the Chemicals median
No single metric tells the full story. See the KPTCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kansai Paint Co Ltd manufactures and sells a variety of coatings and paint products. The company sells five primary types of products: automotive coatings, automotive refinish coatings, decorative coatings, protection coatings, and industrial coatings. The firm's automotive coatings include clear coat paints, top coat paints, and primers. The industrial coatings include paint and coatings for bridges, roads, storage tanks, power plants, and manufacturing facilities. It markets its products mainly to the automotive, marine, and construction industries.
88GF Score
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