Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Seiko Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.19%.
As of today (2026-09-04), Seiko Group's WACC % is 9.67%. Seiko Group's ROC % is 8.43% (calculated using TTM income statement data).
Seiko Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Seiko Group's WACC % is 9.67%. Seiko Group's ROC % is 8.43% (calculated using TTM income statement data).
Seiko Group 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.
Seiko Group ROC % Related Terms
Seiko Group ROC % Historical Data
* Premium members only.
The historical data trend for Seiko Group'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 (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.
Seiko Group (TSE:8050) has a ROC % of 2.19% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Seiko Group and its competitors.
Is Seiko Group's ROC % too high?
Seiko Group's current ROC % is 2.19%. The Manufacturing - Apparel & Accessories industry median ROC % is 3.11. Seiko Group's value of 2.19% is 29.6% below this industry median. Overall, Seiko Group has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Seiko Group's ROC % compare to NKE and DECK?
Seiko Group's ROC % of 2.19% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 3.11. Seiko Group's value of 2.19% is 29.6% 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 Manufacturing - Apparel & Accessories company?
The median ROC % among Manufacturing - Apparel & Accessories companies is 3.11, based on 1,041 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. Seiko Group's current ROC % of 2.19% is 29.6% 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 Seiko Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Seiko Group's current ROC % is 2.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Seiko Group stock overvalued right now?
Based on GuruFocus' analysis, Seiko Group (TSE:8050) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,526.80, compared to a current price of 円10,350.00 — trading 309.6% above its estimated fair value. The current ROC % is 2.19% and 29.6% below the Manufacturing - Apparel & Accessories industry median of 3.11. Seiko Group's overall GF Score™ is 73/100 with 5 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 Seiko Group (TSE:8050), the current ROC % is 2.19% 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 Seiko Group (TSE:8050) Overvalued in 2026?
Based on GuruFocus' analysis, Seiko Group stock appears to be overvalued.
The current stock price of 円10,350.00 is trading 309.6% above its estimated GF Value™ of 円2,526.80.
GuruFocus considers Seiko Group to be Significantly Overvalued.
Key valuation signals for TSE:8050:
ROC %: 2.19%
GF Value™: 円2,526.80 vs. price of 円10,350.00 (309.6% above fair value)
Industry Position: 29.6% below the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the TSE:8050 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Seiko Group Corp is a Japanese manufacturer of watches and electronic devices. The company organizes itself into four segments, based on product type: watches, electronic devices, systems solutions, and others. The watches business, which contributes more than half of the company's revenue, manufactures men's and ladies' fashion watches. The electronic devices business, the next most significant contributor to revenue, produces components such as semiconductors, camera shutters, inkjet print heads, thermal printers, micro-batteries, and radiation-measuring equipment. Combined sales in the watches and electronic devices segments constitute the vast majority of consolidated revenue. The company derives approximately half its revenue domestically.
73GF Score
Get the complete analysis for TSE:8050
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:8050 has been successfully added to your 
