ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Osaka Organic Chemical Industry's annualized return on capital (ROC %) for the quarter that ended in Nov. 2025 was 11.75%.
As of today (2026-06-27), Osaka Organic Chemical Industry's WACC % is 11.80%. Osaka Organic Chemical Industry's ROC % is 12.28% (calculated using TTM income statement data).
Osaka Organic Chemical Industry 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.
Osaka Organic Chemical Industry (TSE:4187) 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, Osaka Organic Chemical Industry's WACC % is 11.80%. Osaka Organic Chemical Industry's ROC % is 12.28% (calculated using TTM income statement data).
Osaka Organic Chemical Industry 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.
Osaka Organic Chemical Industry ROC % Related Terms
Osaka Organic Chemical Industry 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 four times the quarterly (Nov. 2025) 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.
Osaka Organic Chemical Industry (TSE:4187) has a ROC % of 11.75% as of Nov. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Osaka Organic Chemical Industry and its competitors.
Is Osaka Organic Chemical Industry's ROC % too high?
Osaka Organic Chemical Industry's current ROC % is 11.75%. The Chemicals industry median ROC % is 4.46. Osaka Organic Chemical Industry's value of 11.75% is 163.7% above this industry median. Overall, Osaka Organic Chemical Industry has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Osaka Organic Chemical Industry's ROC % compare to LIN and SHW?
Osaka Organic Chemical Industry's ROC % of 11.75% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. Osaka Organic Chemical Industry's value of 11.75% is 163.7% 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 Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,586 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. Osaka Organic Chemical Industry's current ROC % of 11.75% is 163.7% 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 Osaka Organic Chemical Industry and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Osaka Organic Chemical Industry's current ROC % is 11.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Osaka Organic Chemical Industry stock overvalued right now?
Based on GuruFocus' analysis, Osaka Organic Chemical Industry (TSE:4187) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,518.92, compared to a current price of 円5,960.00 — trading 69.4% above its estimated fair value. The current ROC % is 11.75% and 163.7% above the Chemicals industry median of 4.46. Osaka Organic Chemical Industry's overall GF Score™ is 90/100 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 Osaka Organic Chemical Industry (TSE:4187), the current ROC % is 11.75% as of Nov. 2025. 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 Osaka Organic Chemical Industry (TSE:4187) Overvalued in 2026?
Based on GuruFocus' analysis, Osaka Organic Chemical Industry stock appears to be overvalued.
The current stock price of 円5,960.00 is trading 69.4% above its estimated GF Value™ of 円3,518.92.
GuruFocus considers Osaka Organic Chemical Industry to be Significantly Overvalued.
Key valuation signals for TSE:4187:
ROC %: 11.75%
GF Value™: 円3,518.92 vs. price of 円5,960.00 (69.4% above fair value)
Industry Position: 163.7% above the Chemicals median
No single metric tells the full story. See the TSE:4187 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Osaka Organic Chemical Industry Business Description
Osaka Organic Chemical Industry Ltd is engaged in the production and marketing of organic chemistry industry products, organic reagents, petrochemical products, and special polymers, refining and processing of solvents. It operates in three segments: Chemical segment manufactures and sells speciality acrylic acid ester and acrylic acid for paints, adhesives and inks. The Electronic Materials segment manufactures and sells electronic materials, such as liquid crystal materials and semiconductors. The Specialty Chemicals segment manufactures and sells cosmetics raw materials and functional materials.
90GF Score
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