ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Asahi Kasei's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.16%.
As of today (2026-06-27), Asahi Kasei's WACC % is 4.28%. Asahi Kasei's ROC % is 5.11% (calculated using TTM income statement data).
Asahi Kasei 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.
Asahi Kasei (TSE:3407) 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, Asahi Kasei's WACC % is 4.28%. Asahi Kasei's ROC % is 5.11% (calculated using TTM income statement data).
Asahi Kasei 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.
Asahi Kasei ROC % Related Terms
Asahi Kasei ROC % Historical Data
* Premium members only.
The historical data trend for Asahi Kasei'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.
Asahi Kasei (TSE:3407) has a ROC % of 6.16% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Asahi Kasei and its competitors.
Is Asahi Kasei's ROC % too high?
Asahi Kasei's current ROC % is 6.16%. The Conglomerates industry median ROC % is 2.82. Asahi Kasei's value of 6.16% is 118.4% above this industry median. Overall, Asahi Kasei has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asahi Kasei's ROC % compare to HON and MMM?
Asahi Kasei's ROC % of 6.16% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.82. Asahi Kasei's value of 6.16% is 118.4% 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 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. Asahi Kasei's current ROC % of 6.16% is 118.4% 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 Asahi Kasei 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. Asahi Kasei's current ROC % is 6.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asahi Kasei stock overvalued right now?
Based on GuruFocus' analysis, Asahi Kasei (TSE:3407) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,184.61, compared to a current price of 円1,794.00 — trading 51.4% above its estimated fair value. The current ROC % is 6.16% and 118.4% above the Conglomerates industry median of 2.82. Asahi Kasei's overall GF Score™ is 76/100 with 8 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 Asahi Kasei (TSE:3407), the current ROC % is 6.16% 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 Asahi Kasei (TSE:3407) Overvalued in 2026?
Based on GuruFocus' analysis, Asahi Kasei stock appears to be overvalued.
The current stock price of 円1,794.00 is trading 51.4% above its estimated GF Value™ of 円1,184.61.
GuruFocus considers Asahi Kasei to be Significantly Overvalued.
Key valuation signals for TSE:3407:
ROC %: 6.16%
GF Value™: 円1,184.61 vs. price of 円1,794.00 (51.4% above fair value)
Industry Position: 118.4% above the Conglomerates median
No single metric tells the full story. See the TSE:3407 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asahi Kasei Corp is a Japanese industrial conglomerate mainly engaged in materials, housing, and healthcare businesses. The Health Care segment covers pharmaceuticals, healthcare, and critical care. The Housing segment includes housing and building materials businesses. The Material segment consists of environmental solutions, mobility & industry, AL business, and life innovation, such as digital solutions and comfort life. The Others segment includes plant and environmental engineering, research and information services, as well as staffing and placement businesses. It generates the majority of its revenue from the Material segment.
76GF Score
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