ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nittoku Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 9.61%.
As of today (2026-07-12), Nittoku Co's WACC % is 5.80%. Nittoku Co's ROC % is 8.87% (calculated using TTM income statement data).
Nittoku 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.
Nittoku Co (TSE:6145) 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, Nittoku Co's WACC % is 5.80%. Nittoku Co's ROC % is 8.87% (calculated using TTM income statement data).
Nittoku 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.
Nittoku Co ROC % Related Terms
Nittoku Co ROC % Historical Data
* Premium members only.
The historical data trend for Nittoku 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.
Nittoku Co (TSE:6145) has a ROC % of 9.61% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nittoku Co and its competitors.
Is Nittoku Co's ROC % too high?
Nittoku Co's current ROC % is 9.61%. The Industrial Products industry median ROC % is 5.17. Nittoku Co's value of 9.61% is 85.9% above this industry median. Overall, Nittoku Co has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nittoku Co's ROC % compare to GEV and ETN?
Nittoku Co's ROC % of 9.61% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.17. Nittoku Co's value of 9.61% is 85.9% 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 Industrial Products company?
The median ROC % among Industrial Products companies is 5.17, based on 3,034 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. Nittoku Co's current ROC % of 9.61% is 85.9% 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 Nittoku Co and its competitors. For the Industrial Products industry, the median ROC % is 5.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nittoku Co's current ROC % is 9.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nittoku Co stock overvalued right now?
Based on GuruFocus' analysis, Nittoku Co (TSE:6145) is currently considered Fairly Valued. The stock's GF Value™ is 円2,859.89, compared to a current price of 円2,835.00 — trading 0.9% below its estimated fair value. The current ROC % is 9.61% and 85.9% above the Industrial Products industry median of 5.17. Nittoku Co's overall GF Score™ is 92/100. 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 Nittoku Co (TSE:6145), the current ROC % is 9.61% 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 Nittoku Co (TSE:6145) Overvalued in 2026?
Based on GuruFocus' analysis, Nittoku Co stock appears to be undervalued.
The current stock price of 円2,835.00 is trading 0.9% below its estimated GF Value™ of 円2,859.89.
GuruFocus considers Nittoku Co to be Fairly Valued.
Key valuation signals for TSE:6145:
ROC %: 9.61%
GF Value™: 円2,859.89 vs. price of 円2,835.00 (0.9% below fair value)
Industry Position: 85.9% above the Industrial Products median
No single metric tells the full story. See the TSE:6145 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nittoku Co Ltd is a Japan-based company engaged in the manufacturing and sale of coil winding machines and peripheral systems. It also engaged in the factory automation systems and contactless smart cards and parts thereof. The product portfolio of the company includes Relay, Injector coil, Pick up coil, Bobbinless coil, and IC Card among others. The company operates in two reportable segments are the NICS business and the contactless IC tag and card business.
92GF Score
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