ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. KOKUSAI Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 15.42%.
As of today (2026-06-27), KOKUSAI Co's WACC % is 1.95%. KOKUSAI Co's ROC % is 13.53% (calculated using TTM income statement data).
KOKUSAI 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.
KOKUSAI Co (TSE:7722) 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, KOKUSAI Co's WACC % is 1.95%. KOKUSAI Co's ROC % is 13.53% (calculated using TTM income statement data).
KOKUSAI 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.
KOKUSAI Co ROC % Related Terms
KOKUSAI Co ROC % Historical Data
* Premium members only.
The historical data trend for KOKUSAI 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 (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.
KOKUSAI Co (TSE:7722) has a ROC % of 15.42% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on KOKUSAI Co and its competitors.
Is KOKUSAI Co's ROC % too high?
KOKUSAI Co's current ROC % is 15.42%. The Industrial Products industry median ROC % is 5.23. KOKUSAI Co's value of 15.42% is 195.1% above this industry median. Overall, KOKUSAI Co has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KOKUSAI Co's ROC % compare to GEV and ETN?
KOKUSAI Co's ROC % of 15.42% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. KOKUSAI Co's value of 15.42% is 195.1% 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 5.23, based on 3,040 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. KOKUSAI Co's current ROC % of 15.42% is 195.1% 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 KOKUSAI Co and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KOKUSAI Co's current ROC % is 15.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KOKUSAI Co stock overvalued right now?
Based on GuruFocus' analysis, KOKUSAI Co (TSE:7722) is currently considered Fairly Valued. The stock's GF Value™ is 円782.34, compared to a current price of 円748.00 — trading 4.4% below its estimated fair value. The current ROC % is 15.42% and 195.1% above the Industrial Products industry median of 5.23. KOKUSAI Co's overall GF Score™ is 70/100. 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 KOKUSAI Co (TSE:7722), the current ROC % is 15.42% 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 KOKUSAI Co (TSE:7722) Overvalued in 2026?
Based on GuruFocus' analysis, KOKUSAI Co stock appears to be undervalued.
The current stock price of 円748.00 is trading 4.4% below its estimated GF Value™ of 円782.34.
GuruFocus considers KOKUSAI Co to be Fairly Valued.
Key valuation signals for TSE:7722:
ROC %: 15.42%
GF Value™: 円782.34 vs. price of 円748.00 (4.4% below fair value)
Industry Position: 195.1% above the Industrial Products median
No single metric tells the full story. See the TSE:7722 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KOKUSAI Co Ltd is a professional manufacturer of test measurement equipment with vibration measurement technology as base technology. The company serves the automobile industry. The product line includes - Dynamic balancing machine, Tire balancer for production line, Balanced compound testing machine, Tire drum type endurance testing machine, Runout measuring machine, Tire balance weight applier, Winding Tester, Gear Tester, Earthquake measurement system, Electric servo motor type vibration test machine, and Dynamic vibration type vibration test machine.
70GF Score
Get the complete analysis for TSE:7722
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:7722 has been successfully added to your 
