ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Shigematsu Works Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.62%.
As of today (2026-07-09), Shigematsu Works Co's WACC % is 1.75%. Shigematsu Works Co's ROC % is 4.84% (calculated using TTM income statement data).
Shigematsu Works 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.
Shigematsu Works Co (TSE:7980) 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, Shigematsu Works Co's WACC % is 1.75%. Shigematsu Works Co's ROC % is 4.84% (calculated using TTM income statement data).
Shigematsu Works 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.
Shigematsu Works Co ROC % Related Terms
Shigematsu Works Co ROC % Historical Data
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The historical data trend for Shigematsu Works 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.
Shigematsu Works Co (TSE:7980) has a ROC % of 8.62% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shigematsu Works Co and its competitors.
Is Shigematsu Works Co's ROC % too high?
Shigematsu Works Co's current ROC % is 8.62%. The Medical Devices & Instruments industry median ROC % is 1.27. Shigematsu Works Co's value of 8.62% is 581.4% above this industry median. Overall, Shigematsu Works Co has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shigematsu Works Co's ROC % compare to ISRG and BDX?
Shigematsu Works Co's ROC % of 8.62% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROC % is 1.27. Shigematsu Works Co's value of 8.62% is 581.4% 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 Medical Devices & Instruments company?
The median ROC % among Medical Devices & Instruments companies is 1.27, based on 844 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. Shigematsu Works Co's current ROC % of 8.62% is 581.4% 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 Shigematsu Works Co and its competitors. For the Medical Devices & Instruments industry, the median ROC % is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shigematsu Works Co's current ROC % is 8.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shigematsu Works Co stock overvalued right now?
Based on GuruFocus' analysis, Shigematsu Works Co (TSE:7980) is currently considered Modestly Undervalued. The stock's GF Value™ is 円946.81, compared to a current price of 円814.00 — trading 14% below its estimated fair value. The current ROC % is 8.62% and 581.4% above the Medical Devices & Instruments industry median of 1.27. Shigematsu Works Co's overall GF Score™ is 80/100 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 Shigematsu Works Co (TSE:7980), the current ROC % is 8.62% 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 Shigematsu Works Co (TSE:7980) Overvalued in 2026?
Based on GuruFocus' analysis, Shigematsu Works Co stock appears to be undervalued.
The current stock price of 円814.00 is trading 14% below its estimated GF Value™ of 円946.81.
GuruFocus considers Shigematsu Works Co to be Modestly Undervalued.
Key valuation signals for TSE:7980:
ROC %: 8.62%
GF Value™: 円946.81 vs. price of 円814.00 (14% below fair value)
Industry Position: 581.4% above the Medical Devices & Instruments median
No single metric tells the full story. See the TSE:7980 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shigematsu Works Co Ltd is a Japan based company engaged in the safety business. It manufactures personal and respiratory protective devices related to fire and industrial safety, equipment for air purifying, emergency and rescue operations. The company offers products such as gas respirators, chemical cartridge respirators, particulate respirators, self-contained breathing apparatus, powered air-purifying respirators, supplied-air respirators, eye protector, face shields, earmuffs, safety belts, protective clothing, protective gloves, stretchers, oxygen meters and other related products. The products offered by the organization has application in various industries including textile, chemical, automobile, fishery, mining, warehouse and others.
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