ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Alps Alpine Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 6.39%.
As of today (2026-06-25), Alps Alpine Co's WACC % is 3.80%. Alps Alpine Co's ROIC % is 4.37% (calculated using TTM income statement data).
Alps Alpine Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Alps Alpine Co (OTCPK:APELY) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Alps Alpine Co's WACC % is 3.80%. Alps Alpine Co's ROIC % is 4.37% (calculated using TTM income statement data).
Alps Alpine Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Alps Alpine Co ROIC % Related Terms
Alps Alpine Co ROIC % Historical Data
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The historical data trend for Alps Alpine Co's ROIC % 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.
For the Electronic Components subindustry, Alps Alpine Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alps Alpine Co ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Alps Alpine Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Alps Alpine Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Alps Alpine Co (APELY) has a ROIC % of 6.39% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Alps Alpine Co and its competitors.
Is Alps Alpine Co's ROIC % too high?
Alps Alpine Co's current ROIC % is 6.39%. The Hardware industry median ROIC % is 4.12. Alps Alpine Co's value of 6.39% is 55.1% above this industry median. Overall, Alps Alpine Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alps Alpine Co's ROIC % compare to APH and GLW?
Alps Alpine Co's ROIC % of 6.39% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.12. Alps Alpine Co's value of 6.39% is 55.1% 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 ROIC % for a Hardware company?
The median ROIC % among Hardware companies is 4.12, based on 2,443 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alps Alpine Co's current ROIC % of 6.39% is 55.1% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Alps Alpine Co and its competitors. For the Hardware industry, the median ROIC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alps Alpine Co's current ROIC % is 6.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alps Alpine Co stock overvalued right now?
Based on GuruFocus' analysis, Alps Alpine Co (APELY) is currently considered Modestly Overvalued. The stock's GF Value™ is $21.80, compared to a current price of $25.90 — trading 18.8% above its estimated fair value. The current ROIC % is 6.39% and 55.1% above the Hardware industry median of 4.12. Alps Alpine Co's overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Alps Alpine Co (APELY), the current ROIC % is 6.39% 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 Alps Alpine Co (APELY) Overvalued in 2026?
Based on GuruFocus' analysis, Alps Alpine Co stock appears to be overvalued.
The current stock price of $25.90 is trading 18.8% above its estimated GF Value™ of $21.80.
GuruFocus considers Alps Alpine Co to be Modestly Overvalued.
Key valuation signals for APELY:
ROIC %: 6.39%
GF Value™: $21.80 vs. price of $25.90 (18.8% above fair value)
Industry Position: 55.1% above the Hardware median
No single metric tells the full story. See the APELY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alps Alpine Co Ltd is a Japan-based company mainly engaged in businesses related to the components, sensors and communications, and modules and systems businesses. The company operates through three segments. The Component segment manufactures and sells electronic components such as switches, actuators, and haptics. The Module/System segment provides automotive modules, infotainment systems, displays, and related services. The Sensor Communication segment handles sensors and communication devices. The Others segment includes system development, office services, screws, as well as finance and leasing businesses. It generates the majority of its revenue from the Module/System business segment.
65GF Score
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