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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Precision Tsugami (China)'s annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 47.69%.
As of today (2026-08-27), Precision Tsugami (China)'s WACC % is 7.42%. Precision Tsugami (China)'s ROIC % is 44.04% (calculated using TTM income statement data).
Precision Tsugami (China) 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.
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, Precision Tsugami (China)'s WACC % is 7.42%. Precision Tsugami (China)'s ROIC % is 44.04% (calculated using TTM income statement data).
Precision Tsugami (China) 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.
* 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 Tools & Accessories subindustry, Precision Tsugami (China)'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.
Precision Tsugami (China) ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Precision Tsugami (China)'s ROIC % distribution charts can be found below:
* The bar in red indicates where Precision Tsugami (China)'s ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Precision Tsugami (China) (HKSE:01651) has a ROIC % of 47.69% 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 Precision Tsugami (China) and its competitors.
Is Precision Tsugami (China)'s ROIC % too high?
Precision Tsugami (China)'s current ROIC % is 47.69%. The Industrial Products industry median ROIC % is 5.36. Precision Tsugami (China)'s value of 47.69% is 789.7% above this industry median. Overall, Precision Tsugami (China) has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precision Tsugami (China)'s ROIC % compare to SNA and RBC?
Precision Tsugami (China)'s ROIC % of 47.69% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.36. Precision Tsugami (China)'s value of 47.69% is 789.7% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.36, based on 3,032 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. Precision Tsugami (China)'s current ROIC % of 47.69% is 789.7% 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 Precision Tsugami (China) and its competitors. For the Industrial Products industry, the median ROIC % is 5.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Tsugami (China)'s current ROIC % is 47.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Tsugami (China) stock overvalued right now?
Based on GuruFocus' analysis, Precision Tsugami (China) (HKSE:01651) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$20.43, compared to a current price of HK$52.35 — trading 156.2% above its estimated fair value. The current ROIC % is 47.69% and 789.7% above the Industrial Products industry median of 5.36. Precision Tsugami (China)'s overall GF Score™ is 81/100. 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 Precision Tsugami (China) (HKSE:01651), the current ROIC % is 47.69% 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 Precision Tsugami (China) (HKSE:01651) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Tsugami (China) stock appears to be overvalued.
The current stock price of HK$52.35 is trading 156.2% above its estimated GF Value™ of HK$20.43.
GuruFocus considers Precision Tsugami (China) to be Significantly Overvalued.
Key valuation signals for HKSE:01651:
ROIC %: 47.69%
GF Value™: HK$20.43 vs. price of HK$52.35 (156.2% above fair value)
Industry Position: 789.7% above the Industrial Products median
No single metric tells the full story. See the HKSE:01651 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Tsugami (China) Corp Ltd is engaged in the manufacturing and distribution of computer numerical control (CNC) high precision machine tools; and the provision of commercial consultation services. It manufactures and sells CNC machine tools including Precision lathes, Precision machining centers, Precision thread and form rolling machines and Precision grinding machines under the TSUGAMI brand. The company only has one reportable operating segment which is the manufacture and sale of high precision CNC machine tools. Its products are mainly for the Chinese market and are also sold to Japan, Europe, the USA, Southeast Asia and other countries.
81GF Score
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