ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. West Japan Railway Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.10%.
As of today (2026-07-05), West Japan Railway Co's WACC % is 1.82%. West Japan Railway Co's ROIC % is 4.09% (calculated using TTM income statement data).
West Japan Railway 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.
West Japan Railway Co (NGO:9021) 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, West Japan Railway Co's WACC % is 1.82%. West Japan Railway Co's ROIC % is 4.09% (calculated using TTM income statement data).
West Japan Railway 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.
* 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 Railroads subindustry, West Japan Railway 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.
West Japan Railway Co ROIC % vs Transportation Industry
For the Transportation industry and Industrials sector, West Japan Railway Co's ROIC % distribution charts can be found below:
* The bar in red indicates where West Japan Railway Co'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.
West Japan Railway Co (NGO:9021) has a ROIC % of 0.10% 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 West Japan Railway Co and its competitors.
Is West Japan Railway Co's ROIC % too high?
West Japan Railway Co's current ROIC % is 0.10%. The Transportation industry median ROIC % is 4.69. West Japan Railway Co's value of 0.10% is 97.9% below this industry median. Overall, West Japan Railway Co has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does West Japan Railway Co's ROIC % compare to UNP and CSX?
West Japan Railway Co's ROIC % of 0.10% can be compared against companies in the Transportation industry. The industry median ROIC % is 4.69. West Japan Railway Co's value of 0.10% is 97.9% below 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 Transportation company?
The median ROIC % among Transportation companies is 4.69, based on 988 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. West Japan Railway Co's current ROIC % of 0.10% is 97.9% below 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 West Japan Railway Co and its competitors. For the Transportation industry, the median ROIC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Japan Railway Co's current ROIC % is 0.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is West Japan Railway Co stock overvalued right now?
West Japan Railway Co (NGO:9021) has a current ROIC % of 0.10%. The stock's GF Value™ is 円3,159.39, compared to a current price of 円2,501.00 — trading 20.8% below its estimated fair value. The current ROIC % is 0.10% and 97.9% below the Transportation industry median of 4.69. West Japan Railway Co's overall GF Score™ is 61/100 with 3 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 West Japan Railway Co (NGO:9021), the current ROIC % is 0.10% 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 West Japan Railway Co (NGO:9021) Overvalued in 2026?
Based on GuruFocus' analysis, West Japan Railway Co stock appears to be undervalued.
The current stock price of 円2,501.00 is trading 20.8% below its estimated GF Value™ of 円3,159.39.
Key valuation signals for NGO:9021:
ROIC %: 0.10%
GF Value™: 円3,159.39 vs. price of 円2,501.00 (20.8% below fair value)
Industry Position: 97.9% below the Transportation median
No single metric tells the full story. See the NGO:9021 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
West Japan Railway, or JR West, is the main railway operator in Western Japan, headquartered in Osaka. It was originally established when the government-owned nationwide railway operator underwent a six-way territorial split in 1987. Its main assets are the Sanyo Shinkansen, which stretches from Osaka to Fukuoka, and the urban rail network in the Osaka-Kobe-Kyoto metropolitan area. Its nearly 5,000 kilometers of rail track covers a third of Japan's population and a fifth of its land area. Rail operations contribute more than half of revenue, with most of the balance from retail operations, real estate investments, travel agencies, and hotels.
61GF Score
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