ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fukuta Electric & Machinery Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -0.06%.
As of today (2026-07-06), Fukuta Electric & Machinery Co's WACC % is 8.15%. Fukuta Electric & Machinery Co's ROIC % is 1.10% (calculated using TTM income statement data).
Fukuta Electric & Machinery Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Fukuta Electric & Machinery Co (TPE:4590) 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, Fukuta Electric & Machinery Co's WACC % is 8.15%. Fukuta Electric & Machinery Co's ROIC % is 1.10% (calculated using TTM income statement data).
Fukuta Electric & Machinery 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.
Fukuta Electric & Machinery Co ROIC % Related Terms
Fukuta Electric & Machinery Co ROIC % Historical Data
* 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 Industrial Machinery subindustry, Fukuta Electric & Machinery 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.
Fukuta Electric & Machinery Co ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Fukuta Electric & Machinery Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Fukuta Electric & Machinery 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.
Fukuta Electric & Machinery Co (TPE:4590) has a ROIC % of -0.06% 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 Fukuta Electric & Machinery Co and its competitors.
Is Fukuta Electric & Machinery Co's ROIC % too high?
Fukuta Electric & Machinery Co's current ROIC % is -0.06%. Overall, Fukuta Electric & Machinery Co has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Fukuta Electric & Machinery Co's ROIC % compare to GEV and ETN?
Fukuta Electric & Machinery Co's ROIC % of -0.06% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.21. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.21, based on 3,026 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. 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 Fukuta Electric & Machinery Co and its competitors. For the Industrial Products industry, the median ROIC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fukuta Electric & Machinery Co's current ROIC % is -0.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fukuta Electric & Machinery Co stock overvalued right now?
Fukuta Electric & Machinery Co (TPE:4590) has a current ROIC % of -0.06%. The current ROIC % is -0.06%. Fukuta Electric & Machinery Co's overall GF Score™ is 39/100 with 9 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 Fukuta Electric & Machinery Co (TPE:4590), the current ROIC % is -0.06% 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.
Fukuta Electric & Machinery Co Business Description
Fukuta Electric & Machinery Co Ltd is engaged in the research, development, design, manufacturing, and sale of various electric motors and power systems. Its products include AC three-phase induction motors (IEC), inverter motors, inverter duty motors, AC induction servo motors, synchronous motors, and others. The company operates in Taiwan, Japan, the USA, China, and other regions, with Japan generating the majority of its revenue.
39GF Score
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