ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Daiichi Life Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.44%.
As of today (2026-06-27), Daiichi Life Group's WACC % is 4.09%. Daiichi Life Group's ROIC % is 0.70% (calculated using TTM income statement data).
Daiichi Life Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Daiichi Life Group (OTCPK:DLICY) 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, Daiichi Life Group's WACC % is 4.09%. Daiichi Life Group's ROIC % is 0.70% (calculated using TTM income statement data).
Daiichi Life Group 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.
Daiichi Life Group ROIC % Related Terms
Daiichi Life Group ROIC % Historical Data
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The historical data trend for Daiichi Life Group'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 Insurance - Life subindustry, Daiichi Life Group'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.
Daiichi Life Group ROIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Daiichi Life Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Daiichi Life Group's ROIC % falls into.
Note:
The EBIT 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.
Daiichi Life Group (DLICY) has a ROIC % of 0.44% 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 Daiichi Life Group and its competitors.
Is Daiichi Life Group's ROIC % too high?
Daiichi Life Group's current ROIC % is 0.44%. The Insurance industry median ROIC % is 3.36. Daiichi Life Group's value of 0.44% is 86.9% below this industry median. Overall, Daiichi Life Group has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daiichi Life Group's ROIC % compare to AFL and MET?
Daiichi Life Group's ROIC % of 0.44% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.36. Daiichi Life Group's value of 0.44% is 86.9% 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 an Insurance company?
The median ROIC % among Insurance companies is 3.36, based on 368 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. Daiichi Life Group's current ROIC % of 0.44% is 86.9% 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 Daiichi Life Group and its competitors. For the Insurance industry, the median ROIC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiichi Life Group's current ROIC % is 0.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiichi Life Group stock overvalued right now?
Based on GuruFocus' analysis, Daiichi Life Group (DLICY) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.59, compared to a current price of $21.57 — trading 47.8% above its estimated fair value. The current ROIC % is 0.44% and 86.9% below the Insurance industry median of 3.36. Daiichi Life Group's overall GF Score™ is 72/100 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 Daiichi Life Group (DLICY), the current ROIC % is 0.44% 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 Daiichi Life Group (DLICY) Overvalued in 2026?
Based on GuruFocus' analysis, Daiichi Life Group stock appears to be overvalued.
The current stock price of $21.57 is trading 47.8% above its estimated GF Value™ of $14.59.
GuruFocus considers Daiichi Life Group to be Significantly Overvalued.
Key valuation signals for DLICY:
ROIC %: 0.44%
GF Value™: $14.59 vs. price of $21.57 (47.8% above fair value)
Industry Position: 86.9% below the Insurance median
No single metric tells the full story. See the DLICY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dai-ichi Life is Japan's second-largest life insurer (excluding the recently privatized Japan Post Insurance), commanding 11% of annualized net premiums. Unlike its largest domestic rivals—Nippon Life, Meiji Yasuda, and Sumitomo Life—which remain mutually owned by policyholders, Dai-ichi Life demutualized and listed on the Tokyo Stock Exchange in 2010. The group's profit profile is geographically diversified: The main domestic life business contributes roughly 75% of profits, the overseas life business contributes about 22%, and the noninsurance business contributes about 4% of total profits.
72GF Score
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