ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nishi-Nippon Railroad Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.64%.
As of today (2026-06-27), Nishi-Nippon Railroad Co's WACC % is 1.40%. Nishi-Nippon Railroad Co's ROIC % is 3.14% (calculated using TTM income statement data).
Nishi-Nippon Railroad 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.
Nishi-Nippon Railroad Co (OTCPK:NNRDF) 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, Nishi-Nippon Railroad Co's WACC % is 1.40%. Nishi-Nippon Railroad Co's ROIC % is 3.14% (calculated using TTM income statement data).
Nishi-Nippon Railroad 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, Nishi-Nippon Railroad 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.
Nishi-Nippon Railroad Co ROIC % vs Transportation Industry
For the Transportation industry and Industrials sector, Nishi-Nippon Railroad Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Nishi-Nippon Railroad 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.
Nishi-Nippon Railroad Co (NNRDF) has a ROIC % of 2.64% 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 Nishi-Nippon Railroad Co and its competitors.
Is Nishi-Nippon Railroad Co's ROIC % too high?
Nishi-Nippon Railroad Co's current ROIC % is 2.64%. The Transportation industry median ROIC % is 4.69. Nishi-Nippon Railroad Co's value of 2.64% is 43.7% below this industry median. Overall, Nishi-Nippon Railroad Co has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Nishi-Nippon Railroad Co's ROIC % compare to UNP and CSX?
Nishi-Nippon Railroad Co's ROIC % of 2.64% can be compared against companies in the Transportation industry. The industry median ROIC % is 4.69. Nishi-Nippon Railroad Co's value of 2.64% is 43.7% 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 994 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. Nishi-Nippon Railroad Co's current ROIC % of 2.64% is 43.7% 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 Nishi-Nippon Railroad 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. Nishi-Nippon Railroad Co's current ROIC % is 2.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nishi-Nippon Railroad Co stock overvalued right now?
Nishi-Nippon Railroad Co (NNRDF) has a current ROIC % of 2.64%. The stock's GF Value™ is $14.03, compared to a current price of $15.00 — trading 6.9% above its estimated fair value. The current ROIC % is 2.64% and 43.7% below the Transportation industry median of 4.69. Nishi-Nippon Railroad Co's overall GF Score™ is 71/100 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 Nishi-Nippon Railroad Co (NNRDF), the current ROIC % is 2.64% 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 Nishi-Nippon Railroad Co (NNRDF) Overvalued in 2026?
Based on GuruFocus' analysis, Nishi-Nippon Railroad Co stock appears to be overvalued.
The current stock price of $15.00 is trading 6.9% above its estimated GF Value™ of $14.03.
Key valuation signals for NNRDF:
ROIC %: 2.64%
GF Value™: $14.03 vs. price of $15.00 (6.9% above fair value)
Industry Position: 43.7% below the Transportation median
No single metric tells the full story. See the NNRDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nishi-Nippon Railroad Co Ltd organises itself into six segments: transportation, real estate, distribution, logistics, leisure, and other. The transportation segment transports passengers by rail, bus, and taxi. The real estate business develops, sells, and leases commercial and residential buildings. The distribution segment operates supermarkets. The logistics segment operates an international air-cargo-handling business. The leisure segment operates hotels and other leisure businesses. The company derives the majority of its revenue domestically.
71GF Score
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