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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Japan Foundation Engineering Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.60%.
As of today (2026-07-16), Japan Foundation Engineering Co's WACC % is 2.49%. Japan Foundation Engineering Co's ROIC % is 3.97% (calculated using TTM income statement data).
Japan Foundation Engineering 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.
Japan Foundation Engineering Co (TSE:1914) 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, Japan Foundation Engineering Co's WACC % is 2.49%. Japan Foundation Engineering Co's ROIC % is 3.97% (calculated using TTM income statement data).
Japan Foundation Engineering 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.
Japan Foundation Engineering Co ROIC % Related Terms
Japan Foundation Engineering 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 Engineering & Construction subindustry, Japan Foundation Engineering 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.
Japan Foundation Engineering Co ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Japan Foundation Engineering Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Japan Foundation Engineering Co's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Japan Foundation Engineering Co (TSE:1914) has a ROIC % of 3.60% 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 Japan Foundation Engineering Co and its competitors.
Is Japan Foundation Engineering Co's ROIC % too high?
Japan Foundation Engineering Co's current ROIC % is 3.60%. The Construction industry median ROIC % is 4.67. Japan Foundation Engineering Co's value of 3.60% is 22.9% below this industry median. Overall, Japan Foundation Engineering Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Foundation Engineering Co's ROIC % compare to PWR and FIX?
Japan Foundation Engineering Co's ROIC % of 3.60% can be compared against companies in the Construction industry. The industry median ROIC % is 4.67. Japan Foundation Engineering Co's value of 3.60% is 22.9% 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 Construction company?
The median ROIC % among Construction companies is 4.67, based on 1,757 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. Japan Foundation Engineering Co's current ROIC % of 3.60% is 22.9% 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 Japan Foundation Engineering Co and its competitors. For the Construction industry, the median ROIC % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Foundation Engineering Co's current ROIC % is 3.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Foundation Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Foundation Engineering Co (TSE:1914) is currently considered Fairly Valued. The stock's GF Value™ is 円664.04, compared to a current price of 円698.00 — trading 5.1% above its estimated fair value. The current ROIC % is 3.60% and 22.9% below the Construction industry median of 4.67. Japan Foundation Engineering Co's overall GF Score™ is 71/100 with 4 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 Japan Foundation Engineering Co (TSE:1914), the current ROIC % is 3.60% 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 Japan Foundation Engineering Co (TSE:1914) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Foundation Engineering Co stock appears to be overvalued.
The current stock price of 円698.00 is trading 5.1% above its estimated GF Value™ of 円664.04.
GuruFocus considers Japan Foundation Engineering Co to be Fairly Valued.
Key valuation signals for TSE:1914:
ROIC %: 3.60%
GF Value™: 円664.04 vs. price of 円698.00 (5.1% above fair value)
Industry Position: 22.9% below the Construction median
No single metric tells the full story. See the TSE:1914 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Foundation Engineering Co Business Description
Japan Foundation Engineering Co Ltd is a Japan-based company engaged in the provisions of construction services. The company offers surface and physical exploration, hydrologic and geological and soil features surveys, in-site tests, grouting tests, hydrostatic pressure permeability tests, automatic surveillance, and analysis system for slopes and landslides and design and construction management services. Additionally, it also provides ground-reinforcing and environmental preservation works.
71GF Score
Get the complete analysis for TSE:1914
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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