ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. NTT DOCOMO's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2020 was 13.38%.
As of today (2026-06-29), NTT DOCOMO's WACC % is 5.96%. NTT DOCOMO's ROIC % is 10.02% (calculated using TTM income statement data).
NTT DOCOMO 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.
NTT DOCOMO (BUE:DCM) 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, NTT DOCOMO's WACC % is 5.96%. NTT DOCOMO's ROIC % is 10.02% (calculated using TTM income statement data).
NTT DOCOMO 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.
NTT DOCOMO ROIC % Related Terms
NTT DOCOMO ROIC % Historical Data
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The historical data trend for NTT DOCOMO'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 Telecom Services subindustry, NTT DOCOMO'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.
NTT DOCOMO ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NTT DOCOMO's ROIC % distribution charts can be found below:
* The bar in red indicates where NTT DOCOMO's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Sep. 2020) 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.
NTT DOCOMO (BUE:DCM) has a ROIC % of 13.38% as of Sep. 2020. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on NTT DOCOMO and its competitors.
Is NTT DOCOMO's ROIC % too high?
NTT DOCOMO's current ROIC % is 13.38%. The Telecommunication Services industry median ROIC % is 4.53. NTT DOCOMO's value of 13.38% is 195.7% above this industry median. Overall, NTT DOCOMO has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does NTT DOCOMO's ROIC % compare to VZ and T?
NTT DOCOMO's ROIC % of 13.38% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.53. NTT DOCOMO's value of 13.38% is 195.7% 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 Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.53, based on 364 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. NTT DOCOMO's current ROIC % of 13.38% is 195.7% 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 NTT DOCOMO and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTT DOCOMO's current ROIC % is 13.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT DOCOMO stock overvalued right now?
NTT DOCOMO (BUE:DCM) has a current ROIC % of 13.38%. The current ROIC % is 13.38% and 195.7% above the Telecommunication Services industry median of 4.53. NTT DOCOMO's overall GF Score™ is 10/100 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 NTT DOCOMO (BUE:DCM), the current ROIC % is 13.38% as of Sep. 2020. 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.
NTT DoCoMo is Japan's largest wireless telephone operator. It has 78 million subscribers, leading to its market share of approximately 44%. The firm has been a technological leader, introducing wireless Internet access through its i-mode service in 1999, along with the ability to use a handset like a credit card. NTT DoCoMo also owns minority stakes in Philippine Long Distance Telephone, Hutchison Telecom Hong Kong Holdings, and other smaller phone companies. The firm's objective is to have the highest-quality network and customer service in Japan.
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