Showa Chemical Industry Co (TSE:4990) ROCE %: 7.69% (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

TSE:4990 Showa Chemical Industry Co Ltd TSE:4990
67 GF Score
Price 円508.00
GF Value 円458.77
Valuation Modestly Overvalued
! 2 Warning Signs
View Full Analysis

What is Showa Chemical Industry Co ROCE %?

Showa Chemical Industry Co TSE:4990 +0.40% 67 ROCE % is 7.69% as of Mar. 2026. GuruFocus rates TSE:4990 with a GF Score™ of 67/100 and a GF Value™ of 円458.77 (Modestly Overvalued). 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. Showa Chemical Industry Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 7.69%.

Showa Chemical Industry Co  (TSE:4990) 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.

Showa Chemical Industry Co ROCE % Related Terms

Showa Chemical Industry Co ROCE % Historical Data

* Premium members only.

The historical data trend for Showa Chemical Industry Co'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.

Showa Chemical Industry Co ROCE % Chart

Showa Chemical Industry Co 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 6.29 10.12 9.09 6.44 8.57

Showa Chemical Industry Co 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 5.59 6.28 6.54 9.59 7.69
TSE:4990
67GF Score
Showa Chemical Industry Co Ltd TSE:4990
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Showa Chemical Industry Co ROCE % Calculation

Showa Chemical Industry Co'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 )
=915.889/( ( (13655.309 - 3666.489) + (14569.529 - 3191.71) )/ 2 )
=915.889/( (9988.82+11377.819)/ 2 )
=915.889/10683.3195
=8.57 %

Showa Chemical Industry Co'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 )
=845.096/( ( (13941.133 - 3353.75) + (14569.529 - 3191.71) )/ 2 )
=845.096/( ( 10587.383 + 11377.819 )/ 2 )
=845.096/10982.601
=7.69 %

(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 7.69% mean?
Showa Chemical Industry Co (TSE:4990) has a ROCE % of 7.69% as of Mar. 2026.
Is Showa Chemical Industry Co's ROCE % too high?
Showa Chemical Industry Co's current ROCE % is 7.69%. The Chemicals industry median ROCE % is 6.49. Showa Chemical Industry Co's value of 7.69% is 18.5% above this industry median. Overall, Showa Chemical Industry Co has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Showa Chemical Industry Co's ROCE % compare to LIN and SHW?
Showa Chemical Industry Co's ROCE % of 7.69% can be compared against companies in the Chemicals industry. The industry median ROCE % is 6.49. Showa Chemical Industry Co's value of 7.69% 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 Chemicals company?
The median ROCE % among Chemicals companies is 6.49, based on 1,588 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. Showa Chemical Industry Co's current ROCE % of 7.69% 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 Chemicals industry, the median ROCE % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa Chemical Industry Co's current ROCE % is 7.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Showa Chemical Industry Co (TSE:4990) is currently considered Modestly Overvalued. The stock's GF Value™ is 円458.77, compared to a current price of 円508.00 — trading 10.7% above its estimated fair value. The current ROCE % is 7.69% and 18.5% above the Chemicals industry median of 6.49. Showa Chemical Industry Co's overall GF Score™ is 67/100 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 Showa Chemical Industry Co (TSE:4990), the current ROCE % is 7.69% 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 Showa Chemical Industry Co (TSE:4990) Overvalued in 2026?

Based on GuruFocus' analysis, Showa Chemical Industry Co stock appears to be overvalued. The current stock price of 円508.00 is trading 10.7% above its estimated GF Value™ of 円458.77. GuruFocus considers Showa Chemical Industry Co to be Modestly Overvalued.

Key valuation signals for TSE:4990:

  • ROCE %: 7.69%
  • GF Value™: 円458.77 vs. price of 円508.00 (10.7% above fair value)
  • GF Score™: 67/100 with 2 warning signs
  • Industry Position: 18.5% above the Chemicals median

No single metric tells the full story. See the TSE:4990 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Showa Chemical Industry Co Business Description

Address 2-23-18, Shimo-meguro, Meguro-ku, Tokyo, JPN, 153-0064
Showa Chemical Industry Co Ltd is engaged in the development and manufacturing of diatomite and perlite. The product range consists of radiolite diatomite filter aids and functional additives, and topco perlite products. Its products are used in a widening spectrum of applications from chemical manufacturing, pool water treatment, pharmaceuticals, incinerator exhaust filtration, the manufacture of building materials, silicone resins, and soil conditioners. It is operating a diatomite plant in Jilin Province, Northeast China.
67GF Score

Get the complete analysis for TSE:4990

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

円508.00
Price
円458.77
GF Value