ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Daito Trust Construction Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 8.79%.
As of today (2026-06-29), Daito Trust Construction Co's WACC % is 2.03%. Daito Trust Construction Co's ROIC % is 10.00% (calculated using TTM income statement data).
Daito Trust Construction 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.
Daito Trust Construction Co (OTCPK:DITTF) 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, Daito Trust Construction Co's WACC % is 2.03%. Daito Trust Construction Co's ROIC % is 10.00% (calculated using TTM income statement data).
Daito Trust Construction 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.
Daito Trust Construction Co ROIC % Related Terms
Daito Trust Construction Co ROIC % Historical 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.
Daito Trust Construction Co ROIC % Competitor Comparison
For the Real Estate - Diversified subindustry, Daito Trust Construction 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.
Daito Trust Construction Co ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Daito Trust Construction Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Daito Trust Construction 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.
Daito Trust Construction Co (DITTF) has a ROIC % of 8.79% 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 Daito Trust Construction Co and its competitors.
Is Daito Trust Construction Co's ROIC % too high?
Daito Trust Construction Co's current ROIC % is 8.79%. The Real Estate industry median ROIC % is 2.19. Daito Trust Construction Co's value of 8.79% is 301.4% above this industry median. Overall, Daito Trust Construction Co has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Daito Trust Construction Co's ROIC % compare to competitors?
Daito Trust Construction Co's ROIC % of 8.79% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.19. Daito Trust Construction Co's value of 8.79% is 301.4% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.19, based on 1,760 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. Daito Trust Construction Co's current ROIC % of 8.79% is 301.4% 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 Daito Trust Construction Co and its competitors. For the Real Estate industry, the median ROIC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daito Trust Construction Co's current ROIC % is 8.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daito Trust Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Daito Trust Construction Co (DITTF) is currently considered Modestly Undervalued. The stock's GF Value™ is $24.50, compared to a current price of $18.62 — trading 24% below its estimated fair value. The current ROIC % is 8.79% and 301.4% above the Real Estate industry median of 2.19. Daito Trust Construction Co's overall GF Score™ is 87/100 with 2 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 Daito Trust Construction Co (DITTF), the current ROIC % is 8.79% 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 Daito Trust Construction Co (DITTF) Overvalued in 2026?
Based on GuruFocus' analysis, Daito Trust Construction Co stock appears to be undervalued.
The current stock price of $18.62 is trading 24% below its estimated GF Value™ of $24.50.
GuruFocus considers Daito Trust Construction Co to be Modestly Undervalued.
Key valuation signals for DITTF:
ROIC %: 8.79%
GF Value™: $24.50 vs. price of $18.62 (24% below fair value)
Industry Position: 301.4% above the Real Estate median
No single metric tells the full story. See the DITTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daito Trust Construction Co Ltd is a Japan-based company engaged in the construction and real estate businesses. The company operates through four reportable segments: Construction Business, Real Estate Leasing Business, Real Estate Development Business, and Financial Business segment. It proposes land use plans, undertakes construction and installation of rental housing, and engages in bulk leasing of properties, which are subleased to tenants under a rental management system. The company also acts as an intermediary for tenants, develops and sells income-generating real estate, and conducts investment condominium development. It generates the majority of its revenue from the Real estate rental business segment.
87GF Score
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