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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 %. Koyou Rentia Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 16.98%.
As of today (2026-08-15), Koyou Rentia Co's WACC % is 3.08%. Koyou Rentia Co's ROC % is 15.94% (calculated using TTM income statement data).
Koyou Rentia 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.
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, Koyou Rentia Co's WACC % is 3.08%. Koyou Rentia Co's ROC % is 15.94% (calculated using TTM income statement data).
Koyou Rentia 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.
Koyou Rentia Co ROC % Related Terms
Koyou Rentia Co ROC % Historical Data
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The historical data trend for Koyou Rentia 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 (Dec. 2025) 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.
Koyou Rentia Co (TSE:7081) has a ROC % of 16.98% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Koyou Rentia Co and its competitors.
Is Koyou Rentia Co's ROC % too high?
Koyou Rentia Co's current ROC % is 16.98%. The Business Services industry median ROC % is 6.08. Koyou Rentia Co's value of 16.98% is 179.5% above this industry median. Overall, Koyou Rentia Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Koyou Rentia Co's ROC % compare to URI and SUNB?
Koyou Rentia Co's ROC % of 16.98% can be compared against companies in the Business Services industry. The industry median ROC % is 6.08. Koyou Rentia Co's value of 16.98% is 179.5% 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 Business Services company?
The median ROC % among Business Services companies is 6.08, based on 1,072 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. Koyou Rentia Co's current ROC % of 16.98% is 179.5% 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 Koyou Rentia Co and its competitors. For the Business Services industry, the median ROC % is 6.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Koyou Rentia Co's current ROC % is 16.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Koyou Rentia Co stock overvalued right now?
Based on GuruFocus' analysis, Koyou Rentia Co (TSE:7081) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,140.93, compared to a current price of 円1,311.00 — trading 14.9% above its estimated fair value. The current ROC % is 16.98% and 179.5% above the Business Services industry median of 6.08. Koyou Rentia Co's overall GF Score™ is 87/100 with 1 warning sign 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 Koyou Rentia Co (TSE:7081), the current ROC % is 16.98% as of Dec. 2025. 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 Koyou Rentia Co (TSE:7081) Overvalued in 2026?
Based on GuruFocus' analysis, Koyou Rentia Co stock appears to be overvalued.
The current stock price of 円1,311.00 is trading 14.9% above its estimated GF Value™ of 円1,140.93.
GuruFocus considers Koyou Rentia Co to be Modestly Overvalued.
Key valuation signals for TSE:7081:
ROC %: 16.98%
GF Value™: 円1,140.93 vs. price of 円1,311.00 (14.9% above fair value)
Industry Position: 179.5% above the Business Services median
No single metric tells the full story. See the TSE:7081 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Koyou Rentia Co Ltd is engaged in the provision of equipment rental and incidental services. The company rents furniture, fixtures, and equipment to companies in construction, real estate brokerage, event organization, and other industries in Japan and overseas. The Group's business segments are rental-related business, space design business, product sales business, and ICT business.
87GF Score
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