ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Taiyo Kagaku Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.24%.
As of today (2026-07-05), Taiyo Kagaku Co's WACC % is 3.92%. Taiyo Kagaku Co's ROIC % is 11.08% (calculated using TTM income statement data).
Taiyo Kagaku 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.
Taiyo Kagaku Co (NGO:2902) 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, Taiyo Kagaku Co's WACC % is 3.92%. Taiyo Kagaku Co's ROIC % is 11.08% (calculated using TTM income statement data).
Taiyo Kagaku 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.
Taiyo Kagaku Co ROIC % Related Terms
Taiyo Kagaku Co ROIC % Historical Data
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The historical data trend for Taiyo Kagaku 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 Specialty Chemicals subindustry, Taiyo Kagaku 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.
Taiyo Kagaku Co ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Taiyo Kagaku Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Taiyo Kagaku Co'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.
Taiyo Kagaku Co (NGO:2902) has a ROIC % of 11.24% 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 Taiyo Kagaku Co and its competitors.
Is Taiyo Kagaku Co's ROIC % too high?
Taiyo Kagaku Co's current ROIC % is 11.24%. The Chemicals industry median ROIC % is 4.46. Taiyo Kagaku Co's value of 11.24% is 152% above this industry median. Overall, Taiyo Kagaku Co has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiyo Kagaku Co's ROIC % compare to LIN and SHW?
Taiyo Kagaku Co's ROIC % of 11.24% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. Taiyo Kagaku Co's value of 11.24% is 152% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,575 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. Taiyo Kagaku Co's current ROIC % of 11.24% is 152% 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 Taiyo Kagaku Co and its competitors. For the Chemicals industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiyo Kagaku Co's current ROIC % is 11.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiyo Kagaku Co stock overvalued right now?
Based on GuruFocus' analysis, Taiyo Kagaku Co (NGO:2902) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,866.26, compared to a current price of 円2,796.00 — trading 49.8% above its estimated fair value. The current ROIC % is 11.24% and 152% above the Chemicals industry median of 4.46. Taiyo Kagaku Co's overall GF Score™ is 76/100 with 1 warning sign 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 Taiyo Kagaku Co (NGO:2902), the current ROIC % is 11.24% 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 Taiyo Kagaku Co (NGO:2902) Overvalued in 2026?
Based on GuruFocus' analysis, Taiyo Kagaku Co stock appears to be overvalued.
The current stock price of 円2,796.00 is trading 49.8% above its estimated GF Value™ of 円1,866.26.
GuruFocus considers Taiyo Kagaku Co to be Significantly Overvalued.
Key valuation signals for NGO:2902:
ROIC %: 11.24%
GF Value™: 円1,866.26 vs. price of 円2,796.00 (49.8% above fair value)
Industry Position: 152% above the Chemicals median
No single metric tells the full story. See the NGO:2902 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiyo Kagaku Co Ltd is based in Japan. The company has three reportable segments: the Nutrition Business, the Interface Solutions Business, and the Natural Ingredients Business. The Nutrition Business manufactures and sells functional food ingredients such as catechin (green tea extract), theanine (a functional amino acid), and water-soluble dietary fiber, as well as mineral and vitamin preparations. The Interface Solutions Business manufactures and sells quality improvers such as emulsifiers. The Natural Ingredients Business manufactures and sells food ingredients such as egg products, protein ingredients, ingredients for instant foods, and processed agricultural products, as well as quality improvers and stabilizers.
76GF Score
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