ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Isetan Mitsukoshi Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 7.55%.
As of today (2026-06-28), Isetan Mitsukoshi Holdings's WACC % is 6.87%. Isetan Mitsukoshi Holdings's ROIC % is 5.47% (calculated using TTM income statement data).
Isetan Mitsukoshi Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Isetan Mitsukoshi Holdings's WACC % is 6.87%. Isetan Mitsukoshi Holdings's ROIC % is 5.47% (calculated using TTM income statement data).
Isetan Mitsukoshi Holdings 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.
* 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 Department Stores subindustry, Isetan Mitsukoshi Holdings'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.
Isetan Mitsukoshi Holdings ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Isetan Mitsukoshi Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Isetan Mitsukoshi Holdings'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.
Isetan Mitsukoshi Holdings (IMHDF) has a ROIC % of 7.55% 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 Isetan Mitsukoshi Holdings and its competitors.
Is Isetan Mitsukoshi Holdings' ROIC % too high?
Isetan Mitsukoshi Holdings' current ROIC % is 7.55%. The Retail - Cyclical industry median ROIC % is 4.36. Isetan Mitsukoshi Holdings' value of 7.55% is 73.2% above this industry median. Overall, Isetan Mitsukoshi Holdings has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Isetan Mitsukoshi Holdings' ROIC % compare to DDS?
Isetan Mitsukoshi Holdings' ROIC % of 7.55% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.36. Isetan Mitsukoshi Holdings' value of 7.55% is 73.2% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.36, based on 1,108 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. Isetan Mitsukoshi Holdings's current ROIC % of 7.55% is 73.2% 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 Isetan Mitsukoshi Holdings and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Isetan Mitsukoshi Holdings's current ROIC % is 7.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Isetan Mitsukoshi Holdings stock overvalued right now?
Isetan Mitsukoshi Holdings (IMHDF) has a current ROIC % of 7.55%. The stock's GF Value™ is $11.65, compared to a current price of $19.51 — trading 67.5% above its estimated fair value. The current ROIC % is 7.55% and 73.2% above the Retail - Cyclical industry median of 4.36. Isetan Mitsukoshi Holdings' overall GF Score™ is 65/100 with 8 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 Isetan Mitsukoshi Holdings (IMHDF), the current ROIC % is 7.55% 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 Isetan Mitsukoshi Holdings (IMHDF) Overvalued in 2026?
Based on GuruFocus' analysis, Isetan Mitsukoshi Holdings stock appears to be overvalued.
The current stock price of $19.51 is trading 67.5% above its estimated GF Value™ of $11.65.
Key valuation signals for IMHDF:
ROIC %: 7.55%
GF Value™: $11.65 vs. price of $19.51 (67.5% above fair value)
Industry Position: 73.2% above the Retail - Cyclical median
No single metric tells the full story. See the IMHDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Isetan Mitsukoshi Holdings Ltd is a Japan-based company engaged in the department store business. The company operates through three segments. The Credit, Finance, and Friends Association segment handles credit card services, lending, insurance agency operations, and friend association management. The Department Store segment offers a wide range of clothing, personal goods, household products, and foodstuffs. The Real Estate segment engages in leasing, tenant management, and building interiors. The Others segment covers diverse businesses, including retail, manufacturing, import/export, wholesale, logistics, human resources, information processing, media, and travel services. It generates the majority of its revenue from the Department store business segment.
65GF Score
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