ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nishimatsu Construction Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.32%.
As of today (2026-06-27), Nishimatsu Construction Co's WACC % is 2.53%. Nishimatsu Construction Co's ROC % is 3.78% (calculated using TTM income statement data).
Nishimatsu Construction 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.
Nishimatsu Construction Co (TSE:1820) 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, Nishimatsu Construction Co's WACC % is 2.53%. Nishimatsu Construction Co's ROC % is 3.78% (calculated using TTM income statement data).
Nishimatsu Construction 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.
* 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.
Nishimatsu Construction Co (TSE:1820) has a ROC % of 5.32% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nishimatsu Construction Co and its competitors.
Is Nishimatsu Construction Co's ROC % too high?
Nishimatsu Construction Co's current ROC % is 5.32%. The Construction industry median ROC % is 4.65. Nishimatsu Construction Co's value of 5.32% is 14.4% above this industry median. Overall, Nishimatsu Construction Co has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nishimatsu Construction Co's ROC % compare to PWR and FIX?
Nishimatsu Construction Co's ROC % of 5.32% can be compared against companies in the Construction industry. The industry median ROC % is 4.65. Nishimatsu Construction Co's value of 5.32% is 14.4% 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 Construction company?
The median ROC % among Construction companies is 4.65, based on 1,755 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. Nishimatsu Construction Co's current ROC % of 5.32% is 14.4% 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 Nishimatsu Construction Co and its competitors. For the Construction industry, the median ROC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nishimatsu Construction Co's current ROC % is 5.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nishimatsu Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Nishimatsu Construction Co (TSE:1820) is currently considered Fairly Valued. The stock's GF Value™ is 円5,244.59, compared to a current price of 円5,291.00 — trading 0.9% above its estimated fair value. The current ROC % is 5.32% and 14.4% above the Construction industry median of 4.65. Nishimatsu Construction Co's overall GF Score™ is 84/100 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 Nishimatsu Construction Co (TSE:1820), the current ROC % is 5.32% 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 Nishimatsu Construction Co (TSE:1820) Overvalued in 2026?
Based on GuruFocus' analysis, Nishimatsu Construction Co stock appears to be overvalued.
The current stock price of 円5,291.00 is trading 0.9% above its estimated GF Value™ of 円5,244.59.
GuruFocus considers Nishimatsu Construction Co to be Fairly Valued.
Key valuation signals for TSE:1820:
ROC %: 5.32%
GF Value™: 円5,244.59 vs. price of 円5,291.00 (0.9% above fair value)
Industry Position: 14.4% above the Construction median
No single metric tells the full story. See the TSE:1820 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nishimatsu Construction Co Ltd is a Japanese construction and real estate business. The company operates through three segments: civil engineering, building construction, real estate, and others. Together, the civil engineering and building construction segments generate the vast majority of consolidated revenue, and design and construct harbours, airports, highways, dams, tunnels, railways, high-rise buildings, and power plants. The company principally operates in Japan and across Asia, and derives the majority of revenue domestically.
84GF Score
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