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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 %. TOKYO KOKI Co's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 9.49%.
As of today (2026-07-15), TOKYO KOKI Co's WACC % is 5.79%. TOKYO KOKI Co's ROC % is 4.95% (calculated using TTM income statement data).
TOKYO KOKI Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
TOKYO KOKI Co (TSE:7719) 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, TOKYO KOKI Co's WACC % is 5.79%. TOKYO KOKI Co's ROC % is 4.95% (calculated using TTM income statement data).
TOKYO KOKI 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.
TOKYO KOKI Co ROC % Related Terms
TOKYO KOKI Co ROC % Historical Data
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The historical data trend for TOKYO KOKI 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 two times the semi-annual (Feb. 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.
TOKYO KOKI Co (TSE:7719) has a ROC % of 9.49% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on TOKYO KOKI Co and its competitors.
Is TOKYO KOKI Co's ROC % too high?
TOKYO KOKI Co's current ROC % is 9.49%. The Industrial Products industry median ROC % is 5.19. TOKYO KOKI Co's value of 9.49% is 82.9% above this industry median. Overall, TOKYO KOKI Co has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TOKYO KOKI Co's ROC % compare to GEV and ETN?
TOKYO KOKI Co's ROC % of 9.49% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.19. TOKYO KOKI Co's value of 9.49% is 82.9% 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 5.19, based on 3,031 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. TOKYO KOKI Co's current ROC % of 9.49% is 82.9% 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 TOKYO KOKI Co and its competitors. For the Industrial Products industry, the median ROC % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TOKYO KOKI Co's current ROC % is 9.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOKYO KOKI Co stock overvalued right now?
Based on GuruFocus' analysis, TOKYO KOKI Co (TSE:7719) is currently considered Significantly Overvalued. The stock's GF Value™ is 円288.58, compared to a current price of 円523.00 — trading 81.2% above its estimated fair value. The current ROC % is 9.49% and 82.9% above the Industrial Products industry median of 5.19. TOKYO KOKI Co's overall GF Score™ is 57/100 with 7 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 TOKYO KOKI Co (TSE:7719), the current ROC % is 9.49% as of Feb. 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 TOKYO KOKI Co (TSE:7719) Overvalued in 2026?
Based on GuruFocus' analysis, TOKYO KOKI Co stock appears to be overvalued.
The current stock price of 円523.00 is trading 81.2% above its estimated GF Value™ of 円288.58.
GuruFocus considers TOKYO KOKI Co to be Significantly Overvalued.
Key valuation signals for TSE:7719:
ROC %: 9.49%
GF Value™: 円288.58 vs. price of 円523.00 (81.2% above fair value)
Industry Position: 82.9% above the Industrial Products median
No single metric tells the full story. See the TSE:7719 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOKYO KOKI Co Ltd is engaged in the manufacturing and sales of testing and measuring machines and systems. In addition, it is also involved in the manufacturing and distribution of locking nuts, locking springs, special springs, bolts, and other fastening members. Its product offering includes material testing machines, component testing machines, structure testing machines, power testing machines, performance testing equipment, environmental testing equipment, high temperature/ high-pressure environment testing machines, and other testing machines.
57GF Score
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