ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fukuda Denshi Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 19.78%.
As of today (2026-06-30), Fukuda Denshi Co's WACC % is 5.48%. Fukuda Denshi Co's ROIC % is 13.56% (calculated using TTM income statement data).
Fukuda Denshi 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.
Fukuda Denshi Co (OTCPK:FKDSF) 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, Fukuda Denshi Co's WACC % is 5.48%. Fukuda Denshi Co's ROIC % is 13.56% (calculated using TTM income statement data).
Fukuda Denshi 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.
Fukuda Denshi Co ROIC % Related Terms
Fukuda Denshi Co ROIC % Historical Data
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The historical data trend for Fukuda Denshi 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 Medical Devices subindustry, Fukuda Denshi 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.
Fukuda Denshi Co ROIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Fukuda Denshi Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Fukuda Denshi 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.
Fukuda Denshi Co (FKDSF) has a ROIC % of 19.78% 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 Fukuda Denshi Co and its competitors.
Is Fukuda Denshi Co's ROIC % too high?
Fukuda Denshi Co's current ROIC % is 19.78%. The Medical Devices & Instruments industry median ROIC % is 1.25. Fukuda Denshi Co's value of 19.78% is 1482.4% above this industry median. Overall, Fukuda Denshi Co has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Fukuda Denshi Co's ROIC % compare to ABT and SYK?
Fukuda Denshi Co's ROIC % of 19.78% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROIC % is 1.25. Fukuda Denshi Co's value of 19.78% is 1482.4% 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 Medical Devices & Instruments company?
The median ROIC % among Medical Devices & Instruments companies is 1.25, based on 847 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. Fukuda Denshi Co's current ROIC % of 19.78% is 1482.4% 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 Fukuda Denshi Co and its competitors. For the Medical Devices & Instruments industry, the median ROIC % is 1.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fukuda Denshi Co's current ROIC % is 19.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fukuda Denshi Co stock overvalued right now?
Fukuda Denshi Co (FKDSF) has a current ROIC % of 19.78%. The stock's GF Value™ is $27.75, compared to a current price of $42.55 — trading 53.3% above its estimated fair value. The current ROIC % is 19.78% and 1482.4% above the Medical Devices & Instruments industry median of 1.25. Fukuda Denshi Co's overall GF Score™ is 83/100 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 Fukuda Denshi Co (FKDSF), the current ROIC % is 19.78% 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 Fukuda Denshi Co (FKDSF) Overvalued in 2026?
Based on GuruFocus' analysis, Fukuda Denshi Co stock appears to be overvalued.
The current stock price of $42.55 is trading 53.3% above its estimated GF Value™ of $27.75.
Key valuation signals for FKDSF:
ROIC %: 19.78%
GF Value™: $27.75 vs. price of $42.55 (53.3% above fair value)
Industry Position: 1482.4% above the Medical Devices & Instruments median
No single metric tells the full story. See the FKDSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fukuda Denshi Co Ltd develops and manufactures medical electronic equipment. The firm operates in four segments: physiological diagnostic equipment, patient monitoring equipment, medical treatment equipment, and consumables and other products. The physiological diagnostic equipment business sells electrocardiographs, vascular screening systems, and blood cell counters. The patient monitoring equipment segment sells patient monitors and transmitters. The medical treatment equipment segment contributes the largest proportion of revenue and sells pacemakers and medical equipment for home treatment. The consumables and other products segment sells disposable electrodes and consumables used for the firm's devices. Fukuda Denshi generates the vast majority of its sales in Japan.
83GF Score
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