Muromachi Chemicals (TSE:4885) ROCE %: 16.69% (As of Feb. 2026)

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TSE:4885 Muromachi Chemicals Inc TSE:4885
76 GF Score
Price 円900.00
GF Value 円990.45
Valuation Fairly Valued
! 2 Warning Signs
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What is Muromachi Chemicals ROCE %?

Muromachi Chemicals TSE:4885 +0.11% 76 ROCE % is 16.69% as of Feb. 2026. GuruFocus rates TSE:4885 with a GF Score™ of 76/100 and a GF Value™ of 円990.45 (Fairly Valued). The stock has 2 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. Muromachi Chemicals's annualized ROCE % for the quarter that ended in Feb. 2026 was 16.69%.

Muromachi Chemicals  (TSE:4885) 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.

Muromachi Chemicals ROCE % Related Terms

Muromachi Chemicals ROCE % Historical Data

* Premium members only.

The historical data trend for Muromachi Chemicals'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.

Muromachi Chemicals ROCE % Chart

Muromachi Chemicals Annual Data
Trend May19 May20 May21 May22 May23 May24 May25 May26
ROCE %
Get a 7-Day Free Trial 17.46 13.49 15.32 10.42 9.70

Muromachi Chemicals Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
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 0.37 8.04 23.84 16.69 -16.50
TSE:4885
76GF Score
Muromachi Chemicals Inc TSE:4885
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Muromachi Chemicals ROCE % Calculation

Muromachi Chemicals's annualized ROCE % for the fiscal year that ended in May. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=373.567/( ( (5264.574 - 1455.333) + (6352.689 - 2457.106) )/ 2 )
=373.567/( (3809.241+3895.583)/ 2 )
=373.567/3852.412
=9.70 %

Muromachi Chemicals's ROCE % of for the quarter that ended in Feb. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=761.292/( ( (6469.836 - 1935.749) + (6420.656 - 1830.947) )/ 2 )
=761.292/( ( 4534.087 + 4589.709 )/ 2 )
=761.292/4561.898
=16.69 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 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 16.69% mean?
Muromachi Chemicals (TSE:4885) has a ROCE % of 16.69% as of Feb. 2026.
Is Muromachi Chemicals' ROCE % too high?
Muromachi Chemicals' current ROCE % is 16.69%. The Chemicals industry median ROCE % is 7.15. Muromachi Chemicals' value of 16.69% is 133.4% above this industry median. Overall, Muromachi Chemicals has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' ROCE % compare to DOW?
Muromachi Chemicals' ROCE % of 16.69% can be compared against companies in the Chemicals industry. The industry median ROCE % is 7.15. Muromachi Chemicals' value of 16.69% is 133.4% 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 Chemicals company?
The median ROCE % among Chemicals companies is 7.15, based on 1,594 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. Muromachi Chemicals's current ROCE % of 16.69% is 133.4% 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 Chemicals industry, the median ROCE % is 7.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muromachi Chemicals's current ROCE % is 16.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Fairly Valued. The stock's GF Value™ is 円990.45, compared to a current price of 円900.00 — trading 9.1% below its estimated fair value. The current ROCE % is 16.69% and 133.4% above the Chemicals industry median of 7.15. Muromachi Chemicals' overall GF Score™ is 76/100 with 2 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 Muromachi Chemicals (TSE:4885), the current ROCE % is 16.69% as of Feb. 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?

Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be undervalued. The current stock price of 円900.00 is trading 9.1% below its estimated GF Value™ of 円990.45. GuruFocus considers Muromachi Chemicals to be Fairly Valued.

Key valuation signals for TSE:4885:

  • ROCE %: 16.69%
  • GF Value™: 円990.45 vs. price of 円900.00 (9.1% below fair value)
  • GF Score™: 76/100 with 2 warning signs
  • Industry Position: 133.4% above the Chemicals median

No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Muromachi Chemicals Business Description

Address 38-5 Shinshotachicho 1-chome, Omuta, Fukuoka, JPN, 836-0895
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
76GF Score

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

円900.00
Price
円990.45
GF Value