Nextgen (TSE:3842) ROCE %: 10.78% (As of Mar. 2026)

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TSE:3842 Nextgen Inc TSE:3842
64 GF Score
Price 円924.00
GF Value 円1,022.40
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Nextgen ROCE %?

Nextgen TSE:3842 +1.87% 64 ROCE % is 10.78% as of Mar. 2026. GuruFocus rates TSE:3842 with a GF Score™ of 64/100 and a GF Value™ of 円1,022.40 (Modestly Undervalued). The stock has 1 warning sign 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. Nextgen's annualized ROCE % for the quarter that ended in Mar. 2026 was 10.78%.

Nextgen  (TSE:3842) 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.

Nextgen ROCE % Related Terms

Nextgen ROCE % Historical Data

* Premium members only.

The historical data trend for Nextgen'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.

Nextgen ROCE % Chart

Nextgen Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.18 -19.41 8.09 9.34 12.97

Nextgen Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.36 9.38 9.61 15.15 10.78
TSE:3842
64GF Score
Nextgen Inc TSE:3842
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Nextgen ROCE % Calculation

Nextgen'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 )
=329.016/( ( (3536.496 - 1049.945) + (3690.938 - 1103.934) )/ 2 )
=329.016/( (2486.551+2587.004)/ 2 )
=329.016/2536.7775
=12.97 %

Nextgen'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: Sep. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=276.674/( ( (3796.307 - 1249.334) + (3690.938 - 1103.934) )/ 2 )
=276.674/( ( 2546.973 + 2587.004 )/ 2 )
=276.674/2566.9885
=10.78 %

(1) Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 10.78% mean?
Nextgen (TSE:3842) has a ROCE % of 10.78% as of Mar. 2026.
Is Nextgen's ROCE % too high?
Nextgen's current ROCE % is 10.78%. The Telecommunication Services industry median ROCE % is 7.74. Nextgen's value of 10.78% is 39.3% above this industry median. Overall, Nextgen has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nextgen's ROCE % compare to TMUS and VZ?
Nextgen's ROCE % of 10.78% can be compared against companies in the Telecommunication Services industry. The industry median ROCE % is 7.74. Nextgen's value of 10.78% is 39.3% 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 Telecommunication Services company?
The median ROCE % among Telecommunication Services companies is 7.74, based on 351 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. Nextgen's current ROCE % of 10.78% is 39.3% 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 Telecommunication Services industry, the median ROCE % is 7.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nextgen's current ROCE % is 10.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nextgen stock overvalued right now?
Based on GuruFocus' analysis, Nextgen (TSE:3842) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,022.40, compared to a current price of 円924.00 — trading 9.6% below its estimated fair value. The current ROCE % is 10.78% and 39.3% above the Telecommunication Services industry median of 7.74. Nextgen's overall GF Score™ is 64/100 with 1 warning sign 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 Nextgen (TSE:3842), the current ROCE % is 10.78% 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 Nextgen (TSE:3842) Overvalued in 2026?

Based on GuruFocus' analysis, Nextgen stock appears to be undervalued. The current stock price of 円924.00 is trading 9.6% below its estimated GF Value™ of 円1,022.40. GuruFocus considers Nextgen to be Modestly Undervalued.

Key valuation signals for TSE:3842:

  • ROCE %: 10.78%
  • GF Value™: 円1,022.40 vs. price of 円924.00 (9.6% below fair value)
  • GF Score™: 64/100 with 1 warning sign
  • Industry Position: 39.3% above the Telecommunication Services median

No single metric tells the full story. See the TSE:3842 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nextgen Business Description

Address 1-27-6 Shirokane, Minatoku, Shirokane-takanawa Station Building, 6th floor, Tokyo, JPN, 108-0072
Nextgen Inc is engaged in providing software & hardware solutions on Internet protocol telephone system for telecommunication carriers. It has three business segments: Communication system solution; Security solution; Cloud and smartphone solutions. Communication system solution provides carrier-grade SIP/VoIP systems to telecommunication carriers; security solution provides protection consultations.
64GF Score

Get the complete analysis for TSE:3842

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

円924.00
Price
円1,022.40
GF Value