ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nitori Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.18%.
As of today (2026-06-25), Nitori Holdings Co's WACC % is 3.85%. Nitori Holdings Co's ROC % is 6.02% (calculated using TTM income statement data).
Nitori Holdings 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.
Nitori Holdings Co (OTCPK:NCLTY) 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, Nitori Holdings Co's WACC % is 3.85%. Nitori Holdings Co's ROC % is 6.02% (calculated using TTM income statement data).
Nitori Holdings 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.
Nitori Holdings Co ROC % Related Terms
Nitori Holdings Co ROC % Historical Data
* Premium members only.
The historical data trend for Nitori Holdings 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.
Nitori Holdings Co (NCLTY) has a ROC % of 4.18% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nitori Holdings Co and its competitors.
Is Nitori Holdings Co's ROC % too high?
Nitori Holdings Co's current ROC % is 4.18%. The Furnishings, Fixtures & Appliances industry median ROC % is 3.53. Nitori Holdings Co's value of 4.18% is 18.4% above this industry median. Overall, Nitori Holdings Co has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nitori Holdings Co's ROC % compare to SN and SGI?
Nitori Holdings Co's ROC % of 4.18% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROC % is 3.53. Nitori Holdings Co's value of 4.18% is 18.4% 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 Furnishings, Fixtures & Appliances company?
The median ROC % among Furnishings, Fixtures & Appliances companies is 3.53, based on 431 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. Nitori Holdings Co's current ROC % of 4.18% is 18.4% 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 Nitori Holdings Co and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROC % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nitori Holdings Co's current ROC % is 4.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nitori Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Nitori Holdings Co (NCLTY) is currently considered Significantly Undervalued. The stock's GF Value™ is $10.95, compared to a current price of $7.45 — trading 32% below its estimated fair value. The current ROC % is 4.18% and 18.4% above the Furnishings, Fixtures & Appliances industry median of 3.53. Nitori Holdings Co's overall GF Score™ is 82/100 with 4 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 Nitori Holdings Co (NCLTY), the current ROC % is 4.18% 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 Nitori Holdings Co (NCLTY) Overvalued in 2026?
Based on GuruFocus' analysis, Nitori Holdings Co stock appears to be undervalued.
The current stock price of $7.45 is trading 32% below its estimated GF Value™ of $10.95.
GuruFocus considers Nitori Holdings Co to be Significantly Undervalued.
Key valuation signals for NCLTY:
ROC %: 4.18%
GF Value™: $10.95 vs. price of $7.45 (32% below fair value)
Industry Position: 18.4% above the Furnishings, Fixtures & Appliances median
No single metric tells the full story. See the NCLTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nitori Holdings Co Ltd is a Japan-based company engaged in the sale of furniture and interior goods. The company operates through two business segments. The Nitori Business segment is involved in the development, manufacturing, and sale of furniture and interior goods, along with activities such as real estate leasing, advertising, and logistics services. The Shimachu Business segment focuses on the sale of furniture, interior goods, and home center products. It generates the majority of its revenue from the Nitori Business segment.
82GF Score
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