ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Upcon's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2026 was 34.20%.
As of today (2026-06-30), Upcon's WACC % is 0.71%. Upcon's ROIC % is 51.98% (calculated using TTM income statement data).
Upcon 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.
Upcon (NGO:5075) 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, Upcon's WACC % is 0.71%. Upcon's ROIC % is 51.98% (calculated using TTM income statement data).
Upcon 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.
Upcon ROIC % Related Terms
Upcon ROIC % Historical Data
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The historical data trend for Upcon'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 Engineering & Construction subindustry, Upcon'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.
Upcon ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Upcon's ROIC % distribution charts can be found below:
* The bar in red indicates where Upcon's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jan. 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.
Upcon (NGO:5075) has a ROIC % of 34.20% as of Jan. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Upcon and its competitors.
Is Upcon's ROIC % too high?
Upcon's current ROIC % is 34.20%. The Construction industry median ROIC % is 4.66. Upcon's value of 34.20% is 633.9% above this industry median. Overall, Upcon has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Upcon's ROIC % compare to PWR and FIX?
Upcon's ROIC % of 34.20% can be compared against companies in the Construction industry. The industry median ROIC % is 4.66. Upcon's value of 34.20% is 633.9% 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 Construction company?
The median ROIC % among Construction companies is 4.66, based on 1,750 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. Upcon's current ROIC % of 34.20% is 633.9% 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 Upcon and its competitors. For the Construction industry, the median ROIC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Upcon's current ROIC % is 34.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Upcon stock overvalued right now?
Based on GuruFocus' analysis, Upcon (NGO:5075) is currently considered Significantly Overvalued. The stock's GF Value™ is 円738.20, compared to a current price of 円1,350.00 — trading 82.9% above its estimated fair value. The current ROIC % is 34.20% and 633.9% above the Construction industry median of 4.66. Upcon's overall GF Score™ is 66/100 with 2 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 Upcon (NGO:5075), the current ROIC % is 34.20% as of Jan. 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 Upcon (NGO:5075) Overvalued in 2026?
Based on GuruFocus' analysis, Upcon stock appears to be overvalued.
The current stock price of 円1,350.00 is trading 82.9% above its estimated GF Value™ of 円738.20.
GuruFocus considers Upcon to be Significantly Overvalued.
Key valuation signals for NGO:5075:
ROIC %: 34.20%
GF Value™: 円738.20 vs. price of 円1,350.00 (82.9% above fair value)
Industry Position: 633.9% above the Construction median
No single metric tells the full story. See the NGO:5075 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Upcon Corp operates in the civil engineering and construction industry predominantly in Japan. The company applies its Upcon method, which uses completely non-freon urethane resin and small machines to repair subsidence, tilt, steps, gaps, etc., in concrete floors, caused by earthquakes or uneven ground settlement. The Upcon method is also used to correct unevenness on roads, ports, and airports, mainly for public works projects. In addition, the company provides gap and cavity filling services, maintains and repairs waterway tunnels, and is working on several projects, including a new construction method using urethane foam resin. It operates in a single segment, the subsidence correction business.
66GF Score
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