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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. Sumitomo Rubber Industries's annualized ROCE % for the quarter that ended in Mar. 2026 was 7.29%.
Sumitomo Rubber Industries (TSE:5110) 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 four times the quarterly (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.
Sumitomo Rubber Industries (TSE:5110) has a ROCE % of 7.29% as of Mar. 2026.
Is Sumitomo Rubber Industries' ROCE % too high?
Sumitomo Rubber Industries' current ROCE % is 7.29%. The Vehicles & Parts industry median ROCE % is 8.00. Sumitomo Rubber Industries' value of 7.29% is 8.8% below this industry median. Overall, Sumitomo Rubber Industries has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Rubber Industries' ROCE % compare to ORLY and AZO?
Sumitomo Rubber Industries' ROCE % of 7.29% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 8.00. Sumitomo Rubber Industries' value of 7.29% is 8.8% below 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 Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 8.00, based on 1,316 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. Sumitomo Rubber Industries's current ROCE % of 7.29% is 8.8% below 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 Vehicles & Parts industry, the median ROCE % is 8.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Rubber Industries's current ROCE % is 7.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Rubber Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Rubber Industries (TSE:5110) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,437.03, compared to a current price of 円2,271.00 — trading 58% above its estimated fair value. The current ROCE % is 7.29% and 8.8% below the Vehicles & Parts industry median of 8.00. Sumitomo Rubber Industries' overall GF Score™ is 66/100 with 7 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 Sumitomo Rubber Industries (TSE:5110), the current ROCE % is 7.29% 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 Sumitomo Rubber Industries (TSE:5110) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Rubber Industries stock appears to be overvalued.
The current stock price of 円2,271.00 is trading 58% above its estimated GF Value™ of 円1,437.03.
GuruFocus considers Sumitomo Rubber Industries to be Significantly Overvalued.
Key valuation signals for TSE:5110:
ROCE %: 7.29%
GF Value™: 円1,437.03 vs. price of 円2,271.00 (58% above fair value)
Industry Position: 8.8% below the Vehicles & Parts median
No single metric tells the full story. See the TSE:5110 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Rubber Industries Ltd makes and sells rubber tires, sports equipment, and other products in three segments based on product type. The tire segment, which generates the majority of revenue, sells rubber tires for automobiles and motorcycles under the Dunlop and Falken brand names. The sports segment sells golf, tennis, and fitness equipment under the Srixon, XXIO, Cleveland, and Dunlop brand names. The industrial and other products segment sells rubber parts for printers, artificial turf for sporting use, floor coating materials, portable ramps, gloves, tubes, and valves. The majority of revenue comes from Japan than any other region.
66GF Score
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