ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nippon Carbide Industries Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.09%.
As of today (2026-07-13), Nippon Carbide Industries Co's WACC % is 4.64%. Nippon Carbide Industries Co's ROC % is 7.21% (calculated using TTM income statement data).
Nippon Carbide Industries 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.
Nippon Carbide Industries Co (TSE:4064) 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, Nippon Carbide Industries Co's WACC % is 4.64%. Nippon Carbide Industries Co's ROC % is 7.21% (calculated using TTM income statement data).
Nippon Carbide Industries 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.
Nippon Carbide Industries Co ROC % Related Terms
Nippon Carbide Industries Co ROC % Historical Data
* 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.
Nippon Carbide Industries Co (TSE:4064) has a ROC % of 7.09% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nippon Carbide Industries Co and its competitors.
Is Nippon Carbide Industries Co's ROC % too high?
Nippon Carbide Industries Co's current ROC % is 7.09%. The Chemicals industry median ROC % is 4.48. Nippon Carbide Industries Co's value of 7.09% is 58.3% above this industry median. Overall, Nippon Carbide Industries Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Carbide Industries Co's ROC % compare to LIN and SHW?
Nippon Carbide Industries Co's ROC % of 7.09% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.48. Nippon Carbide Industries Co's value of 7.09% is 58.3% 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 Chemicals company?
The median ROC % among Chemicals companies is 4.48, based on 1,577 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. Nippon Carbide Industries Co's current ROC % of 7.09% is 58.3% 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 Nippon Carbide Industries Co and its competitors. For the Chemicals industry, the median ROC % is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Carbide Industries Co's current ROC % is 7.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Carbide Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Carbide Industries Co (TSE:4064) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,052.75, compared to a current price of 円3,315.00 — trading 61.5% above its estimated fair value. The current ROC % is 7.09% and 58.3% above the Chemicals industry median of 4.48. Nippon Carbide Industries Co's overall GF Score™ is 75/100 with 1 warning sign 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 Nippon Carbide Industries Co (TSE:4064), the current ROC % is 7.09% 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 Nippon Carbide Industries Co (TSE:4064) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Carbide Industries Co stock appears to be overvalued.
The current stock price of 円3,315.00 is trading 61.5% above its estimated GF Value™ of 円2,052.75.
GuruFocus considers Nippon Carbide Industries Co to be Significantly Overvalued.
Key valuation signals for TSE:4064:
ROC %: 7.09%
GF Value™: 円2,052.75 vs. price of 円3,315.00 (61.5% above fair value)
Industry Position: 58.3% above the Chemicals median
No single metric tells the full story. See the TSE:4064 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Carbide Industries Co Inc is engaged in the manufacture and sales of chemicals, plastics and resins, plastics films and electronic materials. Its product offerings include calcium carbide, dicyandiamide, cyanamide solution, among others. The company also manufacture and sell adhesive products used in medical, optical, and electronic equipment, coating materials for paper, film, and metal, fiber processing, and pigments.
75GF Score
Get the complete analysis for TSE:4064
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4064 has been successfully added to your 
