Nihon Office Automation Research Co (NGO:5241) ROIC %: 24.84% (As of Dec. 2025)

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NGO:5241 Nihon Office Automation Research Co Ltd NGO:5241
20 GF Score
Price 円742.00
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What is Nihon Office Automation Research Co ROIC %?

Nihon Office Automation Research Co NGO:5241 +1.92% 20 ROIC % is 24.84% as of Dec. 2025. GuruFocus rates NGO:5241 with a GF Score™ of 20/100. The stock has 1 warning sign investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nihon Office Automation Research Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 24.84%.

As of today (2026-07-14), Nihon Office Automation Research Co's WACC % is 7.28%. Nihon Office Automation Research Co's ROIC % is 25.65% (calculated using TTM income statement data). Nihon Office Automation Research 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.

Nihon Office Automation Research Co  (NGO:5241) 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, Nihon Office Automation Research Co's WACC % is 7.28%. Nihon Office Automation Research Co's ROIC % is 25.65% (calculated using TTM income statement data). Nihon Office Automation Research 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.

Nihon Office Automation Research Co ROIC % Related Terms

Nihon Office Automation Research Co ROIC % Historical Data

* Premium members only.

The historical data trend for Nihon Office Automation Research 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.

Nihon Office Automation Research Co ROIC % Chart

Nihon Office Automation Research Co Annual Data
Trend Dec20 Dec21 Dec23 Dec24 Dec25
ROIC %
3.33 19.00 6.42 18.11 26.05

Nihon Office Automation Research Co Semi-Annual Data
Dec20 Dec21 Jun22 Dec23 Jun24 Dec24 Jun25 Dec25
ROIC % Get a 7-Day Free Trial 0.00 19.14 16.87 26.13 24.84

NGO:5241 vs IBM, ACN, FISV: ROIC % Comparison

For the Information Technology Services subindustry, Nihon Office Automation Research 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.

Nihon Office Automation Research Co ROIC % vs Software Industry

For the Software industry and Technology sector, Nihon Office Automation Research Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Nihon Office Automation Research Co's ROIC % falls into.


NGO:5241
20GF Score
Nihon Office Automation Research Co Ltd NGO:5241
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Nihon Office Automation Research Co ROIC % Calculation

Nihon Office Automation Research Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROIC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=154.5 * ( 1 - 34% )/( (382.984 + 399.747)/ 2 )
=101.97/391.3655
=26.05 %

where

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1336.303 - 270.088 - ( 683.231 - max(0, 456.887 - 1167.833+683.231))
=382.984

Invested Capital(A: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1257.705 - 245.237 - ( 612.721 - max(0, 376.605 - 1105.849+612.721))
=399.747

Nihon Office Automation Research Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2025 is calculated as:

ROIC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=148.468 * ( 1 - 32.26% )/( (409.851 + 399.747)/ 2 )
=100.5722232/404.799
=24.84 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1288.499 - 190.554 - ( 688.094 - max(0, 421.972 - 1136.41+688.094))
=409.851

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1257.705 - 245.237 - ( 612.721 - max(0, 376.605 - 1105.849+612.721))
=399.747

Note: The Operating Income data used here is two times the semi-annual (Dec. 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 24.84% mean?
Nihon Office Automation Research Co (NGO:5241) has a ROIC % of 24.84% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Nihon Office Automation Research Co and its competitors.
Is Nihon Office Automation Research Co's ROIC % too high?
Nihon Office Automation Research Co's current ROIC % is 24.84%. The Software industry median ROIC % is 3.09. Nihon Office Automation Research Co's value of 24.84% is 703.9% above this industry median. Overall, Nihon Office Automation Research Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Nihon Office Automation Research Co's ROIC % compare to IBM and ACN?
Nihon Office Automation Research Co's ROIC % of 24.84% can be compared against companies in the Software industry. The industry median ROIC % is 3.09. Nihon Office Automation Research Co's value of 24.84% is 703.9% 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 Software company?
The median ROIC % among Software companies is 3.09, based on 2,829 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. Nihon Office Automation Research Co's current ROIC % of 24.84% is 703.9% 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 Nihon Office Automation Research Co and its competitors. For the Software industry, the median ROIC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Office Automation Research Co's current ROIC % is 24.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Office Automation Research Co stock overvalued right now?
Nihon Office Automation Research Co (NGO:5241) has a current ROIC % of 24.84%. The current ROIC % is 24.84% and 703.9% above the Software industry median of 3.09. Nihon Office Automation Research Co's overall GF Score™ is 20/100 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 Nihon Office Automation Research Co (NGO:5241), the current ROIC % is 24.84% as of Dec. 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.

Nihon Office Automation Research Co Business Description

Address 3-2-1 Nishikanda, First Building South Wing, 4th Floor, Tokyo Sumitomo Real Estate, Chiyoda, Chiyoda-ku, Tokyo, JPN, 101-0065
Nihon Office Automation Research Co Ltd is involved in system development, continuous maintenance, support, system modifications, and related services. The company provides high-value-added IT services by participating in the development of central government office systems.
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ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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