ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tokai Carbon Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 3.11%.
As of today (2026-06-27), Tokai Carbon Co's WACC % is 4.93%. Tokai Carbon Co's ROIC % is 3.39% (calculated using TTM income statement data).
Tokai Carbon Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tokai Carbon Co (OTCPK:TKCBF) 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, Tokai Carbon Co's WACC % is 4.93%. Tokai Carbon Co's ROIC % is 3.39% (calculated using TTM income statement data).
Tokai Carbon Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Tokai Carbon Co ROIC % Related Terms
Tokai Carbon Co ROIC % Historical Data
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The historical data trend for Tokai Carbon 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, Tokai Carbon 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.
Tokai Carbon Co ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tokai Carbon Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Tokai Carbon Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Tokai Carbon Co (TKCBF) has a ROIC % of 3.11% 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 Tokai Carbon Co and its competitors.
Is Tokai Carbon Co's ROIC % too high?
Tokai Carbon Co's current ROIC % is 3.11%. The Chemicals industry median ROIC % is 4.46. Tokai Carbon Co's value of 3.11% is 30.2% below this industry median. Overall, Tokai Carbon 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 Tokai Carbon Co's ROIC % compare to LIN and SHW?
Tokai Carbon Co's ROIC % of 3.11% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. Tokai Carbon Co's value of 3.11% is 30.2% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,586 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. Tokai Carbon Co's current ROIC % of 3.11% is 30.2% 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 Tokai Carbon 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. Tokai Carbon Co's current ROIC % is 3.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Carbon Co stock overvalued right now?
Based on GuruFocus' analysis, Tokai Carbon Co (TKCBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.27, compared to a current price of $11.08 — trading 76.7% above its estimated fair value. The current ROIC % is 3.11% and 30.2% below the Chemicals industry median of 4.46. Tokai Carbon Co's overall GF Score™ is 76/100 with 10 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 Tokai Carbon Co (TKCBF), the current ROIC % is 3.11% 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.
Is Tokai Carbon Co (TKCBF) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Carbon Co stock appears to be overvalued.
The current stock price of $11.08 is trading 76.7% above its estimated GF Value™ of $6.27.
GuruFocus considers Tokai Carbon Co to be Significantly Overvalued.
Key valuation signals for TKCBF:
ROIC %: 3.11%
GF Value™: $6.27 vs. price of $11.08 (76.7% above fair value)
Industry Position: 30.2% below the Chemicals median
No single metric tells the full story. See the TKCBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Carbon Co Ltd is a Japan-based manufacturer of carbon products which include, Carbon black, graphite electrodes, fine carbon friction material and manufactures industrial furnaces, and related products. It operates through three reportable segments, Carbon Black business, Carbon and Ceramics business, and Industrial Furnaces and Related Products business. Carbon black is mainly used as a reinforcing agent of industrial rubber products, typically auto tires. Carbon and Ceramics business segment produces artificial graphite electrodes for electric arc furnaces, fine carbon, carbon brush, impervious graphite, pencil lead-cores. Industrial Furnaces and Related Products segment include Industrial electric furnaces, gas furnaces, silicon carbide heating elements refractory, amongst others.
76GF Score
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