ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Yomeishu Seizo Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.55%.
As of today (2026-07-11), Yomeishu Seizo Co's WACC % is 8.65%. Yomeishu Seizo Co's ROC % is 0.56% (calculated using TTM income statement data).
Yomeishu Seizo Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Yomeishu Seizo Co (TSE:2540) 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, Yomeishu Seizo Co's WACC % is 8.65%. Yomeishu Seizo Co's ROC % is 0.56% (calculated using TTM income statement data).
Yomeishu Seizo 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.
Yomeishu Seizo Co ROC % Related Terms
Yomeishu Seizo Co ROC % Historical Data
* Premium members only.
The historical data trend for Yomeishu Seizo 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.
Yomeishu Seizo Co (TSE:2540) has a ROC % of 0.55% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Yomeishu Seizo Co and its competitors.
Is Yomeishu Seizo Co's ROC % too high?
Yomeishu Seizo Co's current ROC % is 0.55%. The Beverages - Alcoholic industry median ROC % is 4.78. Yomeishu Seizo Co's value of 0.55% is 88.5% below this industry median. Overall, Yomeishu Seizo Co has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yomeishu Seizo Co's ROC % compare to BF.B?
Yomeishu Seizo Co's ROC % of 0.55% can be compared against companies in the Beverages - Alcoholic industry. The industry median ROC % is 4.78. Yomeishu Seizo Co's value of 0.55% is 88.5% 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 Beverages - Alcoholic company?
The median ROC % among Beverages - Alcoholic companies is 4.78, based on 210 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. Yomeishu Seizo Co's current ROC % of 0.55% is 88.5% 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 Yomeishu Seizo Co and its competitors. For the Beverages - Alcoholic industry, the median ROC % is 4.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yomeishu Seizo Co's current ROC % is 0.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yomeishu Seizo Co stock overvalued right now?
Based on GuruFocus' analysis, Yomeishu Seizo Co (TSE:2540) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,317.11, compared to a current price of 円4,030.00 — trading 73.9% above its estimated fair value. The current ROC % is 0.55% and 88.5% below the Beverages - Alcoholic industry median of 4.78. Yomeishu Seizo Co's overall GF Score™ is 37/100 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 Yomeishu Seizo Co (TSE:2540), the current ROC % is 0.55% 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 Yomeishu Seizo Co (TSE:2540) Overvalued in 2026?
Based on GuruFocus' analysis, Yomeishu Seizo Co stock appears to be overvalued.
The current stock price of 円4,030.00 is trading 73.9% above its estimated GF Value™ of 円2,317.11.
GuruFocus considers Yomeishu Seizo Co to be Significantly Overvalued.
Key valuation signals for TSE:2540:
ROC %: 0.55%
GF Value™: 円2,317.11 vs. price of 円4,030.00 (73.9% above fair value)
Industry Position: 88.5% below the Beverages - Alcoholic median
No single metric tells the full story. See the TSE:2540 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yomeishu Seizo Co Ltd is a Japan-based company operates in Beverage business. It is primarily engaged in the manufacture and sale of liquor under the name Yomeishu. Its products include Herb-no-Megumi series, Kohaku Ginger Liqueur, fruit and herb liqueur series, and HER herbs series. Geographically, the business activities of the group are functioned through the region of Japan and sale of products.
37GF Score
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