Nippon Gear Co (TSE:6356) ROCE %: 29.50% (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:6356 Nippon Gear Co Ltd TSE:6356
71 GF Score
Price 円1,317.00
GF Value 円590.21
Valuation Significantly Overvalued
! 1 Warning Sign
View Full Analysis

What is Nippon Gear Co ROCE %?

Nippon Gear Co TSE:6356 +1.07% 71 ROCE % is 29.50% as of Mar. 2026. GuruFocus rates TSE:6356 with a GF Score™ of 71/100 and a GF Value™ of 円590.21 (Significantly Overvalued). The stock has 1 warning sign 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 Gear Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 29.50%.

Nippon Gear Co  (TSE:6356) 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 Gear Co ROCE % Related Terms

Nippon Gear Co ROCE % Historical Data

* Premium members only.

The historical data trend for Nippon Gear 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 Gear Co ROCE % Chart

Nippon Gear Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.87 10.18 19.86 18.25 18.13

Nippon Gear Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 11.93 12.33 18.90 29.50 13.56
TSE:6356
71GF Score
Nippon Gear Co Ltd TSE:6356
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nippon Gear Co ROCE % Calculation

Nippon Gear Co'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 )
=2574.293/( ( (15233.746 - 2016.983) + (17201.128 - 2016.585) )/ 2 )
=2574.293/( (13216.763+15184.543)/ 2 )
=2574.293/14200.653
=18.13 %

Nippon Gear Co'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: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=4359.64/( ( (16150.118 - 1773.167) + (17201.128 - 2016.585) )/ 2 )
=4359.64/( ( 14376.951 + 15184.543 )/ 2 )
=4359.64/14780.747
=29.50 %

(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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 29.50% mean?
Nippon Gear Co (TSE:6356) has a ROCE % of 29.50% as of Mar. 2026.
Is Nippon Gear Co's ROCE % too high?
Nippon Gear Co's current ROCE % is 29.50%. The Vehicles & Parts industry median ROCE % is 8.36. Nippon Gear Co's value of 29.50% is 252.9% above this industry median. Overall, Nippon Gear Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Gear Co's ROCE % compare to ORLY and AZO?
Nippon Gear Co's ROCE % of 29.50% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 8.36. Nippon Gear Co's value of 29.50% is 252.9% 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 Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 8.36, based on 1,323 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 Gear Co's current ROCE % of 29.50% is 252.9% 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 Vehicles & Parts industry, the median ROCE % is 8.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Gear Co's current ROCE % is 29.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Gear Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Gear Co (TSE:6356) is currently considered Significantly Overvalued. The stock's GF Value™ is 円590.21, compared to a current price of 円1,317.00 — trading 123.1% above its estimated fair value. The current ROCE % is 29.50% and 252.9% above the Vehicles & Parts industry median of 8.36. Nippon Gear Co's overall GF Score™ is 71/100 with 1 warning sign 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 Gear Co (TSE:6356), the current ROCE % is 29.50% 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 Nippon Gear Co (TSE:6356) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Gear Co stock appears to be overvalued. The current stock price of 円1,317.00 is trading 123.1% above its estimated GF Value™ of 円590.21. GuruFocus considers Nippon Gear Co to be Significantly Overvalued.

Key valuation signals for TSE:6356:

  • ROCE %: 29.50%
  • GF Value™: 円590.21 vs. price of 円1,317.00 (123.1% above fair value)
  • GF Score™: 71/100 with 1 warning sign
  • Industry Position: 252.9% above the Vehicles & Parts median

No single metric tells the full story. See the TSE:6356 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nippon Gear Co Business Description

Address 1-7-14 Nishi-Shinbashi, 2nd Floor, Keihanshin Toranomon Building, Tokyo, JPN, 252-0811
Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.
71GF Score

Get the complete analysis for TSE:6356

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

円1,317.00
Price
円590.21
GF Value