Shinko (TSE:7120) ROCE %: 39.90% (As of Mar. 2026)

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TSE:7120 Shinko Inc TSE:7120
85 GF Score
Price 円1,092.00
GF Value 円1,029.93
Valuation Fairly Valued
! 3 Warning Signs
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What is Shinko ROCE %?

Shinko TSE:7120 +2.15% 85 ROCE % is 39.90% as of Mar. 2026. GuruFocus rates TSE:7120 with a GF Score™ of 85/100 and a GF Value™ of 円1,029.93 (Fairly Valued). The stock has 3 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. Shinko's annualized ROCE % for the quarter that ended in Mar. 2026 was 39.90%.

Shinko  (TSE:7120) 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.

Shinko ROCE % Related Terms

Shinko ROCE % Historical Data

* Premium members only.

The historical data trend for Shinko'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.

Shinko ROCE % Chart

Shinko Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial 24.96 27.81 19.48 20.00 25.11

Shinko Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only 26.09 10.39 29.53 9.61 39.90
TSE:7120
85GF Score
Shinko Inc TSE:7120
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Shinko ROCE % Calculation

Shinko'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 )
=924.979/( ( (6369.629 - 3063.861) + (8768.702 - 4706.927) )/ 2 )
=924.979/( (3305.768+4061.775)/ 2 )
=924.979/3683.7715
=25.11 %

Shinko'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 )
=1520.15/( ( (6544.216 - 2986.789) + (8768.702 - 4706.927) )/ 2 )
=1520.15/( ( 3557.427 + 4061.775 )/ 2 )
=1520.15/3809.601
=39.90 %

(1) Note: The EBIT data used here is two times the semi-annual (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 39.90% mean?
Shinko (TSE:7120) has a ROCE % of 39.90% as of Mar. 2026.
Is Shinko's ROCE % too high?
Shinko's current ROCE % is 39.90%. The Software industry median ROCE % is 5.29. Shinko's value of 39.90% is 654.3% above this industry median. Overall, Shinko has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shinko's ROCE % compare to IBM and ACN?
Shinko's ROCE % of 39.90% can be compared against companies in the Software industry. The industry median ROCE % is 5.29. Shinko's value of 39.90% is 654.3% 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 Software company?
The median ROCE % among Software companies is 5.29, based on 2,719 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. Shinko's current ROCE % of 39.90% is 654.3% 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 Software industry, the median ROCE % is 5.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinko's current ROCE % is 39.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinko stock overvalued right now?
Based on GuruFocus' analysis, Shinko (TSE:7120) is currently considered Fairly Valued. The stock's GF Value™ is 円1,029.93, compared to a current price of 円1,092.00 — trading 6% above its estimated fair value. The current ROCE % is 39.90% and 654.3% above the Software industry median of 5.29. Shinko's overall GF Score™ is 85/100 with 3 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 Shinko (TSE:7120), the current ROCE % is 39.90% 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 Shinko (TSE:7120) Overvalued in 2026?

Based on GuruFocus' analysis, Shinko stock appears to be overvalued. The current stock price of 円1,092.00 is trading 6% above its estimated GF Value™ of 円1,029.93. GuruFocus considers Shinko to be Fairly Valued.

Key valuation signals for TSE:7120:

  • ROCE %: 39.90%
  • GF Value™: 円1,029.93 vs. price of 円1,092.00 (6% above fair value)
  • GF Score™: 85/100 with 3 warning signs
  • Industry Position: 654.3% above the Software median

No single metric tells the full story. See the TSE:7120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Shinko Business Description

Address 8F CS Tower, 5-20-8 Asakusabashi, Taito-ku, Tokyo, JPN, 111-0053
Shinko Inc is engaged in providing maintenance services for IT equipment and Staffing services. The company's services and products include; Maintenance services, human resource services, Introduction design and installation development services, and Network security-related products. The Maintenance services include Onsite maintenance service, Help desk service, Remote monitoring service, and call center service. The human resource services include an Engineer dispatch service and a Business contract. The Introduction design and installation development services include Network design and construction, Wireless environment construction, and Communication system construction.
85GF Score

Get the complete analysis for TSE:7120

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

円1,092.00
Price
円1,029.93
GF Value