ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tokai Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.65%.
As of today (2026-06-27), Tokai Holdings's WACC % is 1.97%. Tokai Holdings's ROC % is 6.17% (calculated using TTM income statement data).
Tokai Holdings 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.
Tokai Holdings (TSE:3167) 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, Tokai Holdings's WACC % is 1.97%. Tokai Holdings's ROC % is 6.17% (calculated using TTM income statement data).
Tokai Holdings 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.
Tokai Holdings ROC % Related Terms
Tokai Holdings ROC % Historical Data
* Premium members only.
The historical data trend for Tokai Holdings'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.
Tokai Holdings (TSE:3167) has a ROC % of 8.65% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tokai Holdings and its competitors.
Is Tokai Holdings' ROC % too high?
Tokai Holdings' current ROC % is 8.65%. The Conglomerates industry median ROC % is 2.82. Tokai Holdings' value of 8.65% is 206.7% above this industry median. Overall, Tokai Holdings has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokai Holdings' ROC % compare to HON and MMM?
Tokai Holdings' ROC % of 8.65% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.82. Tokai Holdings' value of 8.65% is 206.7% 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 Conglomerates company?
The median ROC % among Conglomerates companies is 2.82, based on 552 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. Tokai Holdings's current ROC % of 8.65% is 206.7% 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 Tokai Holdings and its competitors. For the Conglomerates industry, the median ROC % is 2.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Holdings's current ROC % is 8.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tokai Holdings (TSE:3167) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,033.66, compared to a current price of 円1,143.00 — trading 10.6% above its estimated fair value. The current ROC % is 8.65% and 206.7% above the Conglomerates industry median of 2.82. Tokai Holdings' overall GF Score™ is 70/100 with 6 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 Tokai Holdings (TSE:3167), the current ROC % is 8.65% 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 Tokai Holdings (TSE:3167) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Holdings stock appears to be overvalued.
The current stock price of 円1,143.00 is trading 10.6% above its estimated GF Value™ of 円1,033.66.
GuruFocus considers Tokai Holdings to be Modestly Overvalued.
Key valuation signals for TSE:3167:
ROC %: 8.65%
GF Value™: 円1,033.66 vs. price of 円1,143.00 (10.6% above fair value)
Industry Position: 206.7% above the Conglomerates median
No single metric tells the full story. See the TSE:3167 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Holdings Corp is engaged in miscellaneous business operations. The scope of its activities includes energy, residential real estate and cable television. The energy business relates to the sale of liquefied petroleum gas, liquefied natural gas, oil products, high-pressure gas such as oxygen and nitrogen. The real estate division is responsible for the construction and design of residential buildings and stores. The communication division is engaged in software development, information processing service, optical fiber leasing, data transmission, and the sale of asymmetric digital subscriber line.
70GF Score
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