Nippon Denko Co (TSE:5563) ROCE %: 7.48% (As of Dec. 2025)

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TSE:5563 Nippon Denko Co Ltd TSE:5563
72 GF Score
Price 円422.00
GF Value 円308.34
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Nippon Denko Co ROCE %?

Nippon Denko Co TSE:5563 -1.17% 72 ROCE % is 7.48% as of Dec. 2025. GuruFocus rates TSE:5563 with a GF Score™ of 72/100 and a GF Value™ of 円308.34 (Significantly Overvalued). 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 Denko Co's annualized ROCE % for the quarter that ended in Dec. 2025 was 7.48%.

Nippon Denko Co  (TSE:5563) 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 Denko Co ROCE % Related Terms

Nippon Denko Co ROCE % Historical Data

* Premium members only.

The historical data trend for Nippon Denko 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.

Nippon Denko Co ROCE % Chart

Nippon Denko Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.69 13.74 4.19 6.35 3.80

Nippon Denko Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 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 1.65 4.53 1.68 7.48 6.35
TSE:5563
72GF Score
Nippon Denko Co Ltd TSE:5563
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon Denko Co ROCE % Calculation

Nippon Denko Co's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=3090/( ( (102200 - 18817) + (93414 - 13981) )/ 2 )
=3090/( (83383+79433)/ 2 )
=3090/81408
=3.80 %

Nippon Denko Co's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=5900/( ( (94102 - 15842) + (93414 - 13981) )/ 2 )
=5900/( ( 78260 + 79433 )/ 2 )
=5900/78846.5
=7.48 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2025) 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 7.48% mean?
Nippon Denko Co (TSE:5563) has a ROCE % of 7.48% as of Dec. 2025.
Is Nippon Denko Co's ROCE % too high?
Nippon Denko Co's current ROCE % is 7.48%. The Steel industry median ROCE % is 5.63. Nippon Denko Co's value of 7.48% is 33% above this industry median. Overall, Nippon Denko Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Denko Co's ROCE % compare to NUE and STLD?
Nippon Denko Co's ROCE % of 7.48% can be compared against companies in the Steel industry. The industry median ROCE % is 5.63. Nippon Denko Co's value of 7.48% is 33% 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 Steel company?
The median ROCE % among Steel companies is 5.63, based on 620 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 Denko Co's current ROCE % of 7.48% is 33% 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 Steel industry, the median ROCE % is 5.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Denko Co's current ROCE % is 7.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Denko Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Denko Co (TSE:5563) is currently considered Significantly Overvalued. The stock's GF Value™ is 円308.34, compared to a current price of 円422.00 — trading 36.9% above its estimated fair value. The current ROCE % is 7.48% and 33% above the Steel industry median of 5.63. Nippon Denko Co's overall GF Score™ is 72/100 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 Denko Co (TSE:5563), the current ROCE % is 7.48% as of Dec. 2025. 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 Denko Co (TSE:5563) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Denko Co stock appears to be overvalued. The current stock price of 円422.00 is trading 36.9% above its estimated GF Value™ of 円308.34. GuruFocus considers Nippon Denko Co to be Significantly Overvalued.

Key valuation signals for TSE:5563:

  • ROCE %: 7.48%
  • GF Value™: 円308.34 vs. price of 円422.00 (36.9% above fair value)
  • GF Score™: 72/100 with 4 warning signs
  • Industry Position: 33% above the Steel median

No single metric tells the full story. See the TSE:5563 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nippon Denko Co Business Description

Other Exchanges NJ5:Germany
Address 4-16,1-chome, Yaesu, 4th Floor, Tokyo Tatemono Yaesu Building, Chuo-ku, Tokyo, JPN, 103-8282
Nippon Denko Co Ltd is mainly engaged in the manufacturing and distribution of ferroalloys. In addition, it is also involved in the electric power generation. The company's core business activities are categorized into four segments: Ferroalloys, Functional Materials, Environment, and Other. The company serves a diverse range of markets including power companies, agricultural cooperatives, local governments and companies discharging industrial waste.
72GF Score

Get the complete analysis for TSE:5563

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

円422.00
Price
円308.34
GF Value