ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Uematsu Shokai Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.28%.
As of today (2026-07-13), Uematsu Shokai Co's WACC % is 3.05%. Uematsu Shokai Co's ROC % is 1.54% (calculated using TTM income statement data).
Uematsu Shokai Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Uematsu Shokai Co (NGO:9914) 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, Uematsu Shokai Co's WACC % is 3.05%. Uematsu Shokai Co's ROC % is 1.54% (calculated using TTM income statement data).
Uematsu Shokai Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Uematsu Shokai Co ROC % Related Terms
Uematsu Shokai Co ROC % Historical Data
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The historical data trend for Uematsu Shokai 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 two times the semi-annual (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.
Uematsu Shokai Co (NGO:9914) has a ROC % of 2.28% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Uematsu Shokai Co and its competitors.
Is Uematsu Shokai Co's ROC % too high?
Uematsu Shokai Co's current ROC % is 2.28%. The Industrial Distribution industry median ROC % is 6.21. Uematsu Shokai Co's value of 2.28% is 63.3% below this industry median. Overall, Uematsu Shokai Co has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Uematsu Shokai Co's ROC % compare to GWW and FAST?
Uematsu Shokai Co's ROC % of 2.28% can be compared against companies in the Industrial Distribution industry. The industry median ROC % is 6.21. Uematsu Shokai Co's value of 2.28% is 63.3% 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 an Industrial Distribution company?
The median ROC % among Industrial Distribution companies is 6.21, based on 157 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. Uematsu Shokai Co's current ROC % of 2.28% is 63.3% 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 Uematsu Shokai Co and its competitors. For the Industrial Distribution industry, the median ROC % is 6.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Uematsu Shokai Co's current ROC % is 2.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Uematsu Shokai Co stock overvalued right now?
Based on GuruFocus' analysis, Uematsu Shokai Co (NGO:9914) is currently considered Modestly Undervalued. The stock's GF Value™ is 円964.75, compared to a current price of 円716.00 — trading 25.8% below its estimated fair value. The current ROC % is 2.28% and 63.3% below the Industrial Distribution industry median of 6.21. Uematsu Shokai Co's overall GF Score™ is 60/100 with 2 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 Uematsu Shokai Co (NGO:9914), the current ROC % is 2.28% 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 Uematsu Shokai Co (NGO:9914) Overvalued in 2026?
Based on GuruFocus' analysis, Uematsu Shokai Co stock appears to be undervalued.
The current stock price of 円716.00 is trading 25.8% below its estimated GF Value™ of 円964.75.
GuruFocus considers Uematsu Shokai Co to be Modestly Undervalued.
Key valuation signals for NGO:9914:
ROC %: 2.28%
GF Value™: 円964.75 vs. price of 円716.00 (25.8% below fair value)
Industry Position: 63.3% below the Industrial Distribution median
No single metric tells the full story. See the NGO:9914 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Uematsu Shokai Co Ltd sells industrial machinery and machine tools. The company provides machine tools, machine tool accessories, industrial machinery, conductors, and environmental products. Its products include various field machine tools, such as electronic discharge machines, grinders, metalworking machinery, steel working machinery, and CAD/CAM products. The company operates in a single segment, selling machinery, tools, and industrial machinery and equipment.
60GF Score
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