ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nissin Shoji Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.81%.
As of today (2026-06-26), Nissin Shoji Co's WACC % is 3.96%. Nissin Shoji Co's ROC % is -0.23% (calculated using TTM income statement data).
Nissin Shoji Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Nissin Shoji Co (TSE:7490) 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, Nissin Shoji Co's WACC % is 3.96%. Nissin Shoji Co's ROC % is -0.23% (calculated using TTM income statement data).
Nissin Shoji 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.
Nissin Shoji Co ROC % Related Terms
Nissin Shoji Co ROC % Historical Data
* Premium members only.
The historical data trend for Nissin Shoji 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.
Nissin Shoji Co (TSE:7490) has a ROC % of 0.81% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nissin Shoji Co and its competitors.
Is Nissin Shoji Co's ROC % too high?
Nissin Shoji Co's current ROC % is 0.81%. The Conglomerates industry median ROC % is 2.82. Nissin Shoji Co's value of 0.81% is 71.3% below this industry median. Overall, Nissin Shoji Co has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nissin Shoji Co's ROC % compare to HON and MMM?
Nissin Shoji Co's ROC % of 0.81% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.82. Nissin Shoji Co's value of 0.81% is 71.3% 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 a Conglomerates company?
The median ROC % among Conglomerates companies is 2.82, based on 552 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. Nissin Shoji Co's current ROC % of 0.81% is 71.3% 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 Nissin Shoji Co and its competitors. For the Conglomerates industry, the median ROC % is 2.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nissin Shoji Co's current ROC % is 0.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nissin Shoji Co stock overvalued right now?
Based on GuruFocus' analysis, Nissin Shoji Co (TSE:7490) is currently considered Significantly Overvalued. The stock's GF Value™ is 円470.15, compared to a current price of 円2,184.00 — trading 364.5% above its estimated fair value. The current ROC % is 0.81% and 71.3% below the Conglomerates industry median of 2.82. Nissin Shoji Co's overall GF Score™ is 51/100 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 Nissin Shoji Co (TSE:7490), the current ROC % is 0.81% 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 Nissin Shoji Co (TSE:7490) Overvalued in 2026?
Based on GuruFocus' analysis, Nissin Shoji Co stock appears to be overvalued.
The current stock price of 円2,184.00 is trading 364.5% above its estimated GF Value™ of 円470.15.
GuruFocus considers Nissin Shoji Co to be Significantly Overvalued.
Key valuation signals for TSE:7490:
ROC %: 0.81%
GF Value™: 円470.15 vs. price of 円2,184.00 (364.5% above fair value)
Industry Position: 71.3% below the Conglomerates median
No single metric tells the full story. See the TSE:7490 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nissin Shoji Co Ltd is engaged in the sale of general petroleum products, petrochemical products, synthetic resin products, liquefied petroleum gas, and by-products. The company is also involved in real estate rental business, eating and drinking business, leasing of automobiles and automobile supplies, manufacture and sale of beverages, manufacture, and sale of agricultural materials, agency business related to telecommunications equipment sales and telecommunications service, and other business-related to power generation and power distribution.
51GF Score
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