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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Koatsu Gas Kogyo Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.14%.
As of today (2026-07-24), Koatsu Gas Kogyo Co's WACC % is 2.82%. Koatsu Gas Kogyo Co's ROC % is 4.83% (calculated using TTM income statement data).
Koatsu Gas Kogyo 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.
Koatsu Gas Kogyo Co (OTCPK:KTSUF) 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, Koatsu Gas Kogyo Co's WACC % is 2.82%. Koatsu Gas Kogyo Co's ROC % is 4.83% (calculated using TTM income statement data).
Koatsu Gas Kogyo 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.
Koatsu Gas Kogyo Co ROC % Related Terms
Koatsu Gas Kogyo Co ROC % Historical Data
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The historical data trend for Koatsu Gas Kogyo 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.
Koatsu Gas Kogyo Co (KTSUF) has a ROC % of 5.14% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Koatsu Gas Kogyo Co and its competitors.
Is Koatsu Gas Kogyo Co's ROC % too high?
Koatsu Gas Kogyo Co's current ROC % is 5.14%. The Chemicals industry median ROC % is 4.48. Koatsu Gas Kogyo Co's value of 5.14% is 14.7% above this industry median. Overall, Koatsu Gas Kogyo Co has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Koatsu Gas Kogyo Co's ROC % compare to LIN and SHW?
Koatsu Gas Kogyo Co's ROC % of 5.14% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.48. Koatsu Gas Kogyo Co's value of 5.14% is 14.7% above 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 4.48, based on 1,578 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. Koatsu Gas Kogyo Co's current ROC % of 5.14% is 14.7% 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 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 Koatsu Gas Kogyo Co and its competitors. For the Chemicals industry, the median ROC % is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Koatsu Gas Kogyo Co's current ROC % is 5.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Koatsu Gas Kogyo Co stock overvalued right now?
Koatsu Gas Kogyo Co (KTSUF) has a current ROC % of 5.14%. The stock's GF Value™ is $5.36, compared to a current price of $6.28 — trading 17.2% above its estimated fair value. The current ROC % is 5.14% and 14.7% above the Chemicals industry median of 4.48. Koatsu Gas Kogyo Co's overall GF Score™ is 72/100 with 5 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 Koatsu Gas Kogyo Co (KTSUF), the current ROC % is 5.14% 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 Koatsu Gas Kogyo Co (KTSUF) Overvalued in 2026?
Based on GuruFocus' analysis, Koatsu Gas Kogyo Co stock appears to be overvalued.
The current stock price of $6.28 is trading 17.2% above its estimated GF Value™ of $5.36.
Key valuation signals for KTSUF:
ROC %: 5.14%
GF Value™: $5.36 vs. price of $6.28 (17.2% above fair value)
Industry Position: 14.7% above the Chemicals median
No single metric tells the full story. See the KTSUF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Koatsu Gas Kogyo Co Ltd is engaged in the production and distribution of industrial gases and chemical products. It has three operating business divisions: Gas, Chemical Products and Information Systems. The company supplies various types of gases to a broad range of industrial sectors, from living-related industries to the medical industry. Its chemical products offering includes adhesives, a synthetic resin emulsion, cyanon, special resin and a nonwoven shock-absorbing material. The company offers information systems, such as LSI cards and reader-writers for various industrial fields, such as construction, civil engineering, transportation, and production equipment; and GNSS receiver modules.
72GF Score
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