Howa Machinery (TSE:6203) ROCE %: 6.84% (As of Mar. 2026)

What is Howa Machinery ROCE %?

Howa Machinery TSE:6203 +1.64% 64 ROCE % is 6.84% as of Mar. 2026. GuruFocus rates TSE:6203 with a GF Score™ of 64/100 and a GF Value™ of 円1,026.42 (Significantly Overvalued). The stock has 6 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. Howa Machinery's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.84%.

Howa Machinery (TSE:6203) 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.

Howa Machinery ROCE % Related Terms

Howa Machinery ROCE % Historical Data

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The historical data trend for Howa Machinery'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.

Howa Machinery ROCE % Chart

Howa Machinery Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

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6.38

3.04

-3.82

5.05

5.16

Howa Machinery 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															-9.64	5.57	4.53	3.44	6.84

64GF Score

Howa Machinery Ltd TSE:6203

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Howa Machinery ROCE % Calculation

Howa Machinery'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 )
	=	1393	/	( ( (34051 - 8416)	+	(35826 - 7478) )	/ 2 )
	=	1393	/	( (25635	+	28348)	/ 2 )
	=	1393	/	26991.5
	=	5.16 %

Howa Machinery'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 )
	=	1884	/	( ( (33845 - 7084)	+	(35826 - 7478) )	/ 2 )
	=	1884	/	( ( 26761	+	28348 )	/ 2 )
	=	1884	/	27554.5
	=	6.84 %

(1) Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 6.84% mean?

Howa Machinery (TSE:6203) has a ROCE % of 6.84% as of Mar. 2026.

Is Howa Machinery's ROCE % too high?

Howa Machinery's current ROCE % is 6.84%. The Industrial Products industry median ROCE % is 7.08. Howa Machinery's value of 6.84% is 3.4% below this industry median. Overall, Howa Machinery has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Howa Machinery's ROCE % compare to GEV and ETN?

Howa Machinery's ROCE % of 6.84% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.08. Howa Machinery's value of 6.84% is 3.4% 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 an Industrial Products company?

The median ROCE % among Industrial Products companies is 7.08, based on 3,026 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. Howa Machinery's current ROCE % of 6.84% is 3.4% 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 Industrial Products industry, the median ROCE % is 7.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howa Machinery's current ROCE % is 6.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Howa Machinery stock overvalued right now?

Based on GuruFocus' analysis, Howa Machinery (TSE:6203) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,026.42, compared to a current price of 円1,607.00 — trading 56.6% above its estimated fair value. The current ROCE % is 6.84% and 3.4% below the Industrial Products industry median of 7.08. Howa Machinery's overall GF Score™ is 64/100 with 6 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 Howa Machinery (TSE:6203), the current ROCE % is 6.84% 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 Howa Machinery (TSE:6203) Overvalued in 2026?

Based on GuruFocus' analysis, Howa Machinery stock appears to be overvalued. The current stock price of 円1,607.00 is trading 56.6% above its estimated GF Value™ of 円1,026.42. GuruFocus considers Howa Machinery to be Significantly Overvalued.

Key valuation signals for TSE:6203:

ROCE %: 6.84%
GF Value™: 円1,026.42 vs. price of 円1,607.00 (56.6% above fair value)
GF Score™: 64/100 with 6 warning signs
Industry Position: 3.4% below the Industrial Products median

No single metric tells the full story. See the TSE:6203 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Howa Machinery Business Description

Industry Industrials Industrial Products

Comparable Companies TSE:5367 TSE:6018 TSE:6246 TSE:6505 TSE:6224 TSE:6392 TSE:6482 TSE:6496 TSE:6365 TSE:6317 GEV XTER:SIE XPAR:SU ETN XTER:ENR PH CMI OSTO:ATCO A EMR ITW

Address 1900-1, Sukaguchi, Kiyosu, Aichi, JPN

Website http://www.howa.co.jp

Howa Machinery Ltd engages in the manufacture and sale of machine tools, pneumatic and hydraulic equipment, electronic machines, firearms, construction materials and construction machinery.

64GF Score

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

円1,607.00

Price

円1,026.42

GF Value

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