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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 %. Arisawa Mfg Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 9.77%.
As of today (2026-07-14), Arisawa Mfg Co's WACC % is 5.16%. Arisawa Mfg Co's ROC % is 8.50% (calculated using TTM income statement data).
Arisawa Mfg 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.
Arisawa Mfg Co (TSE:5208) 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, Arisawa Mfg Co's WACC % is 5.16%. Arisawa Mfg Co's ROC % is 8.50% (calculated using TTM income statement data).
Arisawa Mfg 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.
Arisawa Mfg Co ROC % Related Terms
Arisawa Mfg Co ROC % Historical Data
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The historical data trend for Arisawa Mfg 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 (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.
Arisawa Mfg Co (TSE:5208) has a ROC % of 9.77% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Arisawa Mfg Co and its competitors.
Is Arisawa Mfg Co's ROC % too high?
Arisawa Mfg Co's current ROC % is 9.77%. The Hardware industry median ROC % is 4.12. Arisawa Mfg Co's value of 9.77% is 137.1% above this industry median. Overall, Arisawa Mfg Co has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arisawa Mfg Co's ROC % compare to APH and GLW?
Arisawa Mfg Co's ROC % of 9.77% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Arisawa Mfg Co's value of 9.77% is 137.1% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,451 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. Arisawa Mfg Co's current ROC % of 9.77% is 137.1% 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 Arisawa Mfg Co and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arisawa Mfg Co's current ROC % is 9.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arisawa Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Arisawa Mfg Co (TSE:5208) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,771.40, compared to a current price of 円2,509.00 — trading 41.6% above its estimated fair value. The current ROC % is 9.77% and 137.1% above the Hardware industry median of 4.12. Arisawa Mfg Co's overall GF Score™ is 82/100 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 Arisawa Mfg Co (TSE:5208), the current ROC % is 9.77% 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 Arisawa Mfg Co (TSE:5208) Overvalued in 2026?
Based on GuruFocus' analysis, Arisawa Mfg Co stock appears to be overvalued.
The current stock price of 円2,509.00 is trading 41.6% above its estimated GF Value™ of 円1,771.40.
GuruFocus considers Arisawa Mfg Co to be Significantly Overvalued.
Key valuation signals for TSE:5208:
ROC %: 9.77%
GF Value™: 円1,771.40 vs. price of 円2,509.00 (41.6% above fair value)
Industry Position: 137.1% above the Hardware median
No single metric tells the full story. See the TSE:5208 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arisawa Mfg Co Ltd is a Japanese based company, engages in the manufacture and sale of electronic materials of electronic materials. The company provides electronic materials used in personal computers and cellular phones; and optoelectronic materials such as Fresnel lenses for projection TV; electrical insulating materials; and structural materials. It also offers display materials comprising anti-reflection films, 3D display filters, special optical films, 3D display equipment, polarizing plates, hard-coating films, and projection screens.
82GF Score
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