ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tama Home Co's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2025 was 11.23%.
As of today (2026-07-02), Tama Home Co's WACC % is 1.48%. Tama Home Co's ROIC % is 5.18% (calculated using TTM income statement data).
Tama Home 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.
Tama Home Co (FSE:1419) 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, Tama Home Co's WACC % is 1.48%. Tama Home Co's ROIC % is 5.18% (calculated using TTM income statement data).
Tama Home 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.
Tama Home Co ROIC % Related Terms
Tama Home Co ROIC % Historical Data
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The historical data trend for Tama Home 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 Residential Construction subindustry, Tama Home 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.
Tama Home Co ROIC % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Tama Home Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Tama Home Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Nov. 2025) 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.
Tama Home Co (FSE:1419) has a ROIC % of 11.23% as of Nov. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Tama Home Co and its competitors.
Is Tama Home Co's ROIC % too high?
Tama Home Co's current ROIC % is 11.23%. The Homebuilding & Construction industry median ROIC % is 4.52. Tama Home Co's value of 11.23% is 148.5% above this industry median. Overall, Tama Home Co has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Tama Home Co's ROIC % compare to DHI and PHM?
Tama Home Co's ROIC % of 11.23% can be compared against companies in the Homebuilding & Construction industry. The industry median ROIC % is 4.52. Tama Home Co's value of 11.23% is 148.5% 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 Homebuilding & Construction company?
The median ROIC % among Homebuilding & Construction companies is 4.52, based on 95 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. Tama Home Co's current ROIC % of 11.23% is 148.5% 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 Tama Home Co and its competitors. For the Homebuilding & Construction industry, the median ROIC % is 4.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tama Home Co's current ROIC % is 11.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tama Home Co stock overvalued right now?
Tama Home Co (FSE:1419) has a current ROIC % of 11.23%. The stock's GF Value™ is 円3,968.45, compared to a current price of 円3,405.00 — trading 14.2% below its estimated fair value. The current ROIC % is 11.23% and 148.5% above the Homebuilding & Construction industry median of 4.52. Tama Home Co's overall GF Score™ is 79/100 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 Tama Home Co (FSE:1419), the current ROIC % is 11.23% as of Nov. 2025. 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 Tama Home Co (FSE:1419) Overvalued in 2026?
Based on GuruFocus' analysis, Tama Home Co stock appears to be undervalued.
The current stock price of 円3,405.00 is trading 14.2% below its estimated GF Value™ of 円3,968.45.
Key valuation signals for FSE:1419:
ROIC %: 11.23%
GF Value™: 円3,968.45 vs. price of 円3,405.00 (14.2% below fair value)
Industry Position: 148.5% above the Homebuilding & Construction median
No single metric tells the full story. See the FSE:1419 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tama Home Co Ltd is engaged in construction, architectural design, real estate, and insurance agency. It operates through the segments namely Housing Segment, Real Estate Segment, Financial Segment and Other Business Segment. It is involved in construction contractor for custom-built homes, multi-unit homes, the sale of residential lots, development and sale of condominiums and subleasing of office buildings. In addition, it also includes insurance agency services for fire, earthquake, additional policies and agency services, the sale of home furniture and interior construction work, construction contractor for retail facilities and others. It is also involved in the energy and restaurant business. The company generates the majority of its revenue from the Housing segment.
79GF Score
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