Nippon RAD (TSE:4736) ROCE %: 6.13% (As of Mar. 2026)


TSE:4736 Nippon RAD Inc TSE:4736
70 GF Score
Price 円607.00
GF Value 円722.91
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Nippon RAD ROCE %?

Nippon RAD TSE:4736 -1.78% 70 ROCE % is 6.13% as of Mar. 2026. GuruFocus rates TSE:4736 with a GF Score™ of 70/100 and a GF Value™ of 円722.91 (Modestly Undervalued). The stock has 4 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. Nippon RAD's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.13%.

Nippon RAD  (TSE:4736) 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.

Nippon RAD ROCE % Related Terms

Nippon RAD ROCE % Historical Data

* Premium members only.

The historical data trend for Nippon RAD'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.

Nippon RAD ROCE % Chart

Nippon RAD 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 1.15 4.73 9.33 10.14 5.87

Nippon RAD 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 8.53 9.93 10.52 5.53 6.13
TSE:4736
70GF Score
Nippon RAD Inc TSE:4736
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon RAD ROCE % Calculation

Nippon RAD'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 )
=241.75/( ( (4938.934 - 879.844) + (4950.395 - 772.09) )/ 2 )
=241.75/( (4059.09+4178.305)/ 2 )
=241.75/4118.6975
=5.87 %

Nippon RAD'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 )
=255.85/( ( (4845.681 - 675.342) + (4950.395 - 772.09) )/ 2 )
=255.85/( ( 4170.339 + 4178.305 )/ 2 )
=255.85/4174.322
=6.13 %

(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 6.13% mean?
Nippon RAD (TSE:4736) has a ROCE % of 6.13% as of Mar. 2026.
Is Nippon RAD's ROCE % too high?
Nippon RAD's current ROCE % is 6.13%. The Software industry median ROCE % is 5.18. Nippon RAD's value of 6.13% is 18.5% above this industry median. Overall, Nippon RAD has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon RAD's ROCE % compare to IBM and ACN?
Nippon RAD's ROCE % of 6.13% can be compared against companies in the Software industry. The industry median ROCE % is 5.18. Nippon RAD's value of 6.13% is 18.5% 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 Software company?
The median ROCE % among Software companies is 5.18, based on 2,710 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. Nippon RAD's current ROCE % of 6.13% is 18.5% 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 Software industry, the median ROCE % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon RAD's current ROCE % is 6.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon RAD stock overvalued right now?
Based on GuruFocus' analysis, Nippon RAD (TSE:4736) is currently considered Modestly Undervalued. The stock's GF Value™ is 円722.91, compared to a current price of 円607.00 — trading 16% below its estimated fair value. The current ROCE % is 6.13% and 18.5% above the Software industry median of 5.18. Nippon RAD's overall GF Score™ is 70/100 with 4 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 Nippon RAD (TSE:4736), the current ROCE % is 6.13% 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 Nippon RAD (TSE:4736) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon RAD stock appears to be undervalued. The current stock price of 円607.00 is trading 16% below its estimated GF Value™ of 円722.91. GuruFocus considers Nippon RAD to be Modestly Undervalued.

Key valuation signals for TSE:4736:

  • ROCE %: 6.13%
  • GF Value™: 円722.91 vs. price of 円607.00 (16% below fair value)
  • GF Score™: 70/100 with 4 warning signs
  • Industry Position: 18.5% above the Software median

No single metric tells the full story. See the TSE:4736 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nippon RAD Business Description

Address Akasaka, 1-12-32 Ark Mori Building 30th floor, Minato-ku, Tokyo, JPN, 107-6030
Nippon RAD Inc is engaged in the development of systems and software for various industries and operations. The solutions of the company include the GW system, card operation system, risk management system, vehicle management system, risk management system, and others.
70GF Score

Get the complete analysis for TSE:4736

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

円607.00
Price
円722.91
GF Value