Hikari Tsushin (FRA:HIK) ROCE %: 8.42% (As of Mar. 2026)

What is Hikari Tsushin ROCE %?

Hikari Tsushin FRA:HIK -3.68% 80 ROCE % is 8.42% as of Mar. 2026. GuruFocus rates FRA:HIK with a GF Score™ of 80/100 and a GF Value™ of €218.29 (Modestly Undervalued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hikari Tsushin's annualized ROCE % for the quarter that ended in Mar. 2026 was 8.42%.

Hikari Tsushin (FRA:HIK) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hikari Tsushin ROCE % Related Terms

Hikari Tsushin ROCE % Historical Data

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The historical data trend for Hikari Tsushin's ROCE % 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.

Hikari Tsushin ROCE % Chart

Hikari Tsushin Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

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11.95

10.43

11.83

9.55

9.85

Hikari Tsushin Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															2.80	10.18	9.91	13.22	8.42

80GF Score

Hikari Tsushin Inc FRA:HIK

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Hikari Tsushin ROCE % Calculation

Hikari Tsushin's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	1207.316	/	( ( (14713.769 - 3134.991)	+	(15556.794 - 2630.699) )	/ 2 )
	=	1207.316	/	( (11578.778	+	12926.095)	/ 2 )
	=	1207.316	/	12252.4365
	=	9.85 %

Hikari Tsushin's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	1058.02	/	( ( (14879.751 - 2688.658)	+	(15556.794 - 2630.699) )	/ 2 )
	=	1058.02	/	( ( 12191.093	+	12926.095 )	/ 2 )
	=	1058.02	/	12558.594
	=	8.42 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 8.42% mean?

Hikari Tsushin (FRA:HIK) has a ROCE % of 8.42% as of Mar. 2026.

Is Hikari Tsushin's ROCE % too high?

Hikari Tsushin's current ROCE % is 8.42%. The Conglomerates industry median ROCE % is 6.94. Hikari Tsushin's value of 8.42% is 21.4% above this industry median. Overall, Hikari Tsushin has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Hikari Tsushin's ROCE % compare to HON and MMM?

Hikari Tsushin's ROCE % of 8.42% can be compared against companies in the Conglomerates industry. The industry median ROCE % is 6.94. Hikari Tsushin's value of 8.42% is 21.4% 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 ROCE % for a Conglomerates company?

The median ROCE % among Conglomerates companies is 6.94, based on 558 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hikari Tsushin's current ROCE % of 8.42% is 21.4% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Conglomerates industry, the median ROCE % is 6.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Tsushin's current ROCE % is 8.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Hikari Tsushin stock overvalued right now?

Based on GuruFocus' analysis, Hikari Tsushin (FRA:HIK) is currently considered Modestly Undervalued. The stock's GF Value™ is €218.29, compared to a current price of €183.00 — trading 16.2% below its estimated fair value. The current ROCE % is 8.42% and 21.4% above the Conglomerates industry median of 6.94. Hikari Tsushin's overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Hikari Tsushin (FRA:HIK), the current ROCE % is 8.42% 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 Hikari Tsushin (FRA:HIK) Overvalued in 2026?

Based on GuruFocus' analysis, Hikari Tsushin stock appears to be undervalued. The current stock price of €183.00 is trading 16.2% below its estimated GF Value™ of €218.29. GuruFocus considers Hikari Tsushin to be Modestly Undervalued.

Key valuation signals for FRA:HIK:

ROCE %: 8.42%
GF Value™: €218.29 vs. price of €183.00 (16.2% below fair value)
GF Score™: 80/100 with 5 warning signs
Industry Position: 21.4% above the Conglomerates median

No single metric tells the full story. See the FRA:HIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hikari Tsushin Business Description

Industry Industrials Conglomerates

Comparable Companies TSE:5201 TSE:7911 TSE:7912 TSE:2768 TSE:4204 TSE:9042 TSE:9024 TSE:5393 TSE:5706 TSE:3407 ADX:IHC HON TSE:6501 TSE:8058 MMM TSE:8001 TSE:8031 TSE:5803 TSE:8002 TSE:8053

Other Exchanges HKTGF:USA 9435:Japan

Address 1-4-10 Nishi-Ikebukuro, Hikari West Gate Building, Toshima-ku, Tokyo, JPN, 171-0021

Website https://www.hikari.co.jp

Hikari Tsushin Inc operates as a holding company engaged in diversified businesses through seven segments: Electricity and Gas, Telecommunications, Beverages, Insurance, Finance, Solutions, and Agency Sales. The group provides electricity and gas supply, communication services, natural mineral water, non-life insurance, and warranty services, as well as financial services such as microfinance, industry-specific solution platforms, and agency sales of various products from telecommunications carriers and manufacturers. It generates the majority of its revenue from the Electricity and Gas segment.

80GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€183.00

Price

€218.29

GF Value

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