Kokyo (TSE:5887) ROCE %: 12.14% (As of Dec. 2025)


TSE:5887 Kokyo Inc TSE:5887
23 GF Score
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What is Kokyo ROCE %?

Kokyo TSE:5887 23 ROCE % is 12.14% as of Dec. 2025. GuruFocus rates TSE:5887 with a GF Score™ of 23/100. 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. Kokyo's annualized ROCE % for the quarter that ended in Dec. 2025 was 12.14%.

Kokyo  (TSE:5887) 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.

Kokyo ROCE % Related Terms

Kokyo ROCE % Historical Data

* Premium members only.

The historical data trend for Kokyo'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.

Kokyo ROCE % Chart

Kokyo Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
17.18 27.26 37.40 36.35 13.74

Kokyo Semi-Annual Data
Dec21 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial 17.05 -3.93 75.54 12.09 12.14
TSE:5887
23GF Score
Kokyo Inc TSE:5887
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Kokyo ROCE % Calculation

Kokyo'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 )
=82.641/( ( (874.164 - 444.637) + (1528.062 - 754.868) )/ 2 )
=82.641/( (429.527+773.194)/ 2 )
=82.641/601.3605
=13.74 %

Kokyo'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: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=93.22/( ( (1227.893 - 465.819) + (1528.062 - 754.868) )/ 2 )
=93.22/( ( 762.074 + 773.194 )/ 2 )
=93.22/767.634
=12.14 %

(1) Note: The EBIT data used here is two times the semi-annual (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 12.14% mean?
Kokyo (TSE:5887) has a ROCE % of 12.14% as of Dec. 2025.
Is Kokyo's ROCE % too high?
Kokyo's current ROCE % is 12.14%. The Hardware industry median ROCE % is 5.83. Kokyo's value of 12.14% is 108.2% above this industry median. Overall, Kokyo has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Kokyo's ROCE % compare to ?
Kokyo's ROCE % of 12.14% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.83. Kokyo's value of 12.14% is 108.2% 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 Hardware company?
The median ROCE % among Hardware companies is 5.83, based on 2,445 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. Kokyo's current ROCE % of 12.14% is 108.2% 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 Hardware industry, the median ROCE % is 5.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kokyo's current ROCE % is 12.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kokyo stock overvalued right now?
Kokyo (TSE:5887) has a current ROCE % of 12.14%. The current ROCE % is 12.14% and 108.2% above the Hardware industry median of 5.83. Kokyo's overall GF Score™ is 23/100 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 Kokyo (TSE:5887), the current ROCE % is 12.14% 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.

Kokyo Business Description

Comparable Companies
Address 131, Takeda Nishidan Kawaramachi, Fushimi Ward, Kyoto Prefecture, Kyoto, JPN, 612-8429
Kokyo Inc is specializes in the laser industry, providing a platform that connects companies, engineers, and researchers involved in light and lasers. The company is a single segment engaged in the sale of laser-related products and related businesses.
23GF Score

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

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