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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. Japan Business Systems's annualized ROCE % for the quarter that ended in Mar. 2026 was 26.88%.
Japan Business Systems (TSE:5036) 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.
* 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.
(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.
Japan Business Systems (TSE:5036) has a ROCE % of 26.88% as of Mar. 2026.
Is Japan Business Systems' ROCE % too high?
Japan Business Systems' current ROCE % is 26.88%. The Software industry median ROCE % is 5.35. Japan Business Systems' value of 26.88% is 402.9% above this industry median. Overall, Japan Business Systems has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Japan Business Systems' ROCE % compare to MSFT and ORCL?
Japan Business Systems' ROCE % of 26.88% can be compared against companies in the Software industry. The industry median ROCE % is 5.35. Japan Business Systems' value of 26.88% is 402.9% 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 5.35, based on 2,726 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. Japan Business Systems's current ROCE % of 26.88% is 402.9% 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 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Business Systems's current ROCE % is 26.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Business Systems stock overvalued right now?
Based on GuruFocus' analysis, Japan Business Systems (TSE:5036) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,018.53, compared to a current price of 円1,600.00 — trading 20.7% below its estimated fair value. The current ROCE % is 26.88% and 402.9% above the Software industry median of 5.35. Japan Business Systems' overall GF Score™ is 77/100 with 3 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 Japan Business Systems (TSE:5036), the current ROCE % is 26.88% 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 Japan Business Systems (TSE:5036) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Business Systems stock appears to be undervalued.
The current stock price of 円1,600.00 is trading 20.7% below its estimated GF Value™ of 円2,018.53.
GuruFocus considers Japan Business Systems to be Modestly Undervalued.
Key valuation signals for TSE:5036:
ROCE %: 26.88%
GF Value™: 円2,018.53 vs. price of 円1,600.00 (20.7% below fair value)
Industry Position: 402.9% above the Software median
No single metric tells the full story. See the TSE:5036 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Business Systems Inc operates in the information technology sector. The company works with cloud companies, various hardware and software manufacturers, research institutes and universities, etc., to provide cloud services to its clients. It is a cloud services integrator that provides consulting and IT services that can maximize customer performance by utilizing cloud services centered on Microsoft. The various services offered by the company include digital transformation, cloud infrastructure solutions, SAP system solutions, Microsoft 365 and Power platform-related solutions, and others. Its reportable segments are; Cloud Integration, which derives key revenue, and Cloud Services. Geographically, the company operates in Japan.
77GF Score
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