ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Meiko Network Japan Co's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 18.00%.
As of today (2026-06-27), Meiko Network Japan Co's WACC % is 2.01%. Meiko Network Japan Co's ROC % is 10.98% (calculated using TTM income statement data).
Meiko Network Japan 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.
Meiko Network Japan Co (TSE:4668) 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, Meiko Network Japan Co's WACC % is 2.01%. Meiko Network Japan Co's ROC % is 10.98% (calculated using TTM income statement data).
Meiko Network Japan 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.
* 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 (Feb. 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.
Meiko Network Japan Co (TSE:4668) has a ROC % of 18.00% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Meiko Network Japan Co and its competitors.
Is Meiko Network Japan Co's ROC % too high?
Meiko Network Japan Co's current ROC % is 18.00%. The Education industry median ROC % is 5.00. Meiko Network Japan Co's value of 18.00% is 260% above this industry median. Overall, Meiko Network Japan Co has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Meiko Network Japan Co's ROC % compare to EDU and TAL?
Meiko Network Japan Co's ROC % of 18.00% can be compared against companies in the Education industry. The industry median ROC % is 5.00. Meiko Network Japan Co's value of 18.00% is 260% 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 an Education company?
The median ROC % among Education companies is 5.00, based on 261 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. Meiko Network Japan Co's current ROC % of 18.00% is 260% 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 Meiko Network Japan Co and its competitors. For the Education industry, the median ROC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meiko Network Japan Co's current ROC % is 18.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meiko Network Japan Co stock overvalued right now?
Based on GuruFocus' analysis, Meiko Network Japan Co (TSE:4668) is currently considered Modestly Undervalued. The stock's GF Value™ is 円827.84, compared to a current price of 円684.00 — trading 17.4% below its estimated fair value. The current ROC % is 18.00% and 260% above the Education industry median of 5.00. Meiko Network Japan Co's overall GF Score™ is 87/100 with 2 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 Meiko Network Japan Co (TSE:4668), the current ROC % is 18.00% as of Feb. 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 Meiko Network Japan Co (TSE:4668) Overvalued in 2026?
Based on GuruFocus' analysis, Meiko Network Japan Co stock appears to be undervalued.
The current stock price of 円684.00 is trading 17.4% below its estimated GF Value™ of 円827.84.
GuruFocus considers Meiko Network Japan Co to be Modestly Undervalued.
Key valuation signals for TSE:4668:
ROC %: 18.00%
GF Value™: 円827.84 vs. price of 円684.00 (17.4% below fair value)
Industry Position: 260% above the Education median
No single metric tells the full story. See the TSE:4668 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meiko Network Japan Co Ltd provides educational services. The company's business is divided into Meiko Gijuku Business Activities which operates schools for children of all ages from elementary school to university entrance examination. Medical Cram School Business Activities include a school for medicine-related university entrance examination, and Other Business Activities comprises of Soccer schools for preschool children elementary and junior high school students, individual tutoring cram schools, extended-hours cram schools, and others.
87GF Score
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