ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nippon Ceramic Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 19.79%.
As of today (2026-06-27), Nippon Ceramic Co's WACC % is 4.84%. Nippon Ceramic Co's ROC % is 19.42% (calculated using TTM income statement data).
Nippon Ceramic 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.
Nippon Ceramic Co (TSE:6929) 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, Nippon Ceramic Co's WACC % is 4.84%. Nippon Ceramic Co's ROC % is 19.42% (calculated using TTM income statement data).
Nippon Ceramic 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.
Nippon Ceramic Co ROC % Related Terms
Nippon Ceramic Co ROC % Historical Data
* Premium members only.
The historical data trend for Nippon Ceramic 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.
Nippon Ceramic Co (TSE:6929) has a ROC % of 19.79% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nippon Ceramic Co and its competitors.
Is Nippon Ceramic Co's ROC % too high?
Nippon Ceramic Co's current ROC % is 19.79%. The Hardware industry median ROC % is 4.12. Nippon Ceramic Co's value of 19.79% is 380.9% above this industry median. Overall, Nippon Ceramic Co has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Ceramic Co's ROC % compare to APH and GLW?
Nippon Ceramic Co's ROC % of 19.79% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Nippon Ceramic Co's value of 19.79% is 380.9% 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 a Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Nippon Ceramic Co's current ROC % of 19.79% is 380.9% 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 Nippon Ceramic 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. Nippon Ceramic Co's current ROC % is 19.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Ceramic Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Ceramic Co (TSE:6929) is currently considered Modestly Overvalued. The stock's GF Value™ is 円3,318.59, compared to a current price of 円3,755.00 — trading 13.2% above its estimated fair value. The current ROC % is 19.79% and 380.9% above the Hardware industry median of 4.12. Nippon Ceramic Co's overall GF Score™ is 94/100 with 4 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 Nippon Ceramic Co (TSE:6929), the current ROC % is 19.79% 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 Nippon Ceramic Co (TSE:6929) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Ceramic Co stock appears to be overvalued.
The current stock price of 円3,755.00 is trading 13.2% above its estimated GF Value™ of 円3,318.59.
GuruFocus considers Nippon Ceramic Co to be Modestly Overvalued.
Key valuation signals for TSE:6929:
ROC %: 19.79%
GF Value™: 円3,318.59 vs. price of 円3,755.00 (13.2% above fair value)
Industry Position: 380.9% above the Hardware median
No single metric tells the full story. See the TSE:6929 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Ceramic Co Ltd is a Japan based company engaged in development, manufacturing and sale of ceramic sensors, ferrite, module and others. Its products are applicable for household equipment and plant facilities; automobiles; home electronics and office automation equipment; and electronics. Its Household equipment & plant faculties include lighting, sensor, security system, fire detection sensor etc. In automobile industry its products are applicable in sensor, DC- DC Converter, charging & discharging battery etc. Its products in home electronics include Microwave, airconditioner and IH cooker. Under electronics industry its products are power supplies, fan motors, inverters.
94GF Score
Get the complete analysis for TSE:6929
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:6929 has been successfully added to your 
