ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Dai Nippon Toryo Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.21%.
As of today (2026-06-24), Dai Nippon Toryo Co's WACC % is 3.63%. Dai Nippon Toryo Co's ROIC % is 1.94% (calculated using TTM income statement data).
Dai Nippon Toryo Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Dai Nippon Toryo Co (OTCPK:DAIYF) 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, Dai Nippon Toryo Co's WACC % is 3.63%. Dai Nippon Toryo Co's ROIC % is 1.94% (calculated using TTM income statement data).
Dai Nippon Toryo Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Dai Nippon Toryo Co ROIC % Related Terms
Dai Nippon Toryo Co ROIC % Historical Data
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The historical data trend for Dai Nippon Toryo 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 Specialty Chemicals subindustry, Dai Nippon Toryo 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.
Dai Nippon Toryo Co ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Dai Nippon Toryo Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Dai Nippon Toryo Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Dai Nippon Toryo Co (DAIYF) has a ROIC % of 3.21% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Dai Nippon Toryo Co and its competitors.
Is Dai Nippon Toryo Co's ROIC % too high?
Dai Nippon Toryo Co's current ROIC % is 3.21%. The Chemicals industry median ROIC % is 4.46. Dai Nippon Toryo Co's value of 3.21% is 28% below this industry median. Overall, Dai Nippon Toryo Co has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dai Nippon Toryo Co's ROIC % compare to LIN and SHW?
Dai Nippon Toryo Co's ROIC % of 3.21% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. Dai Nippon Toryo Co's value of 3.21% is 28% 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 ROIC % for a Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,585 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. Dai Nippon Toryo Co's current ROIC % of 3.21% is 28% 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 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 Dai Nippon Toryo Co and its competitors. For the Chemicals industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dai Nippon Toryo Co's current ROIC % is 3.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dai Nippon Toryo Co stock overvalued right now?
Based on GuruFocus' analysis, Dai Nippon Toryo Co (DAIYF) is currently considered Modestly Undervalued. The stock's GF Value™ is $9.43, compared to a current price of $8.20 — trading 13% below its estimated fair value. The current ROIC % is 3.21% and 28% below the Chemicals industry median of 4.46. Dai Nippon Toryo Co's overall GF Score™ is 59/100 with 4 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 Dai Nippon Toryo Co (DAIYF), the current ROIC % is 3.21% 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 Dai Nippon Toryo Co (DAIYF) Overvalued in 2026?
Based on GuruFocus' analysis, Dai Nippon Toryo Co stock appears to be undervalued.
The current stock price of $8.20 is trading 13% below its estimated GF Value™ of $9.43.
GuruFocus considers Dai Nippon Toryo Co to be Modestly Undervalued.
Key valuation signals for DAIYF:
ROIC %: 3.21%
GF Value™: $9.43 vs. price of $8.20 (13% below fair value)
No single metric tells the full story. See the DAIYF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dai Nippon Toryo Co Ltd is a Japan-based company engaged in the production and sales of coatings and jet inks. Its product lines include protective, decorative, automobile, and industrial. Products offered by the company include anticorrosive coatings, water-based coatings, and coatings for industrial use. Protective coatings are used in the steel frames of buildings, bridges, industrial plants, and concrete structures. Decorative coatings are used for the interiors, exteriors, and roofs of residential buildings. Automobile coatings are used in automotive components, such as bumpers, door mirrors, and other interior and exterior components. Industrial coatings are designed for applications, such as curtain walls, aluminum sashes, steel furniture, agricultural and construction machinery.
59GF Score
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