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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kyoshin Co's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 3.02%.
As of today (2026-07-16), Kyoshin Co's WACC % is 0.89%. Kyoshin Co's ROC % is 0.53% (calculated using TTM income statement data).
Kyoshin Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kyoshin Co (TSE:4735) 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, Kyoshin Co's WACC % is 0.89%. Kyoshin Co's ROC % is 0.53% (calculated using TTM income statement data).
Kyoshin Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Kyoshin Co ROC % Related Terms
Kyoshin Co ROC % Historical Data
* Premium members only.
The historical data trend for Kyoshin Co'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 (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.
Kyoshin Co (TSE:4735) has a ROC % of 3.02% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kyoshin Co and its competitors.
Is Kyoshin Co's ROC % too high?
Kyoshin Co's current ROC % is 3.02%. The Education industry median ROC % is 5.04. Kyoshin Co's value of 3.02% is 40.1% below this industry median. Overall, Kyoshin Co has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kyoshin Co's ROC % compare to EDU and TAL?
Kyoshin Co's ROC % of 3.02% can be compared against companies in the Education industry. The industry median ROC % is 5.04. Kyoshin Co's value of 3.02% is 40.1% below 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 5.04, based on 259 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. Kyoshin Co's current ROC % of 3.02% is 40.1% below 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 Kyoshin Co and its competitors. For the Education industry, the median ROC % is 5.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kyoshin Co's current ROC % is 3.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kyoshin Co stock overvalued right now?
Based on GuruFocus' analysis, Kyoshin Co (TSE:4735) is currently considered Significantly Overvalued. The stock's GF Value™ is 円196.48, compared to a current price of 円304.00 — trading 54.7% above its estimated fair value. The current ROC % is 3.02% and 40.1% below the Education industry median of 5.04. Kyoshin Co's overall GF Score™ is 52/100 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 Kyoshin Co (TSE:4735), the current ROC % is 3.02% 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 Kyoshin Co (TSE:4735) Overvalued in 2026?
Based on GuruFocus' analysis, Kyoshin Co stock appears to be overvalued.
The current stock price of 円304.00 is trading 54.7% above its estimated GF Value™ of 円196.48.
GuruFocus considers Kyoshin Co to be Significantly Overvalued.
Key valuation signals for TSE:4735:
ROC %: 3.02%
GF Value™: 円196.48 vs. price of 円304.00 (54.7% above fair value)
Industry Position: 40.1% below the Education median
No single metric tells the full story. See the TSE:4735 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kyoshin Co Ltd operates cram schools and offers guidance services for students appearing for elementary, junior, & high school entrance examinations. It also operates specialty schools for Japanese students abroad & offers tutorial & related services. It has franchise classes for individual guidance and English conversation classes for children from elementary school to infants. The company operates in three segments, which include cram school business, Language-related businesses, and the childcare and elderly care business segment.
52GF Score
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