ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Morinaga Milk Industry Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.10%.
As of today (2026-07-02), Morinaga Milk Industry Co's WACC % is 2.45%. Morinaga Milk Industry Co's ROIC % is 5.44% (calculated using TTM income statement data).
Morinaga Milk Industry 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.
Morinaga Milk Industry Co (TSE:2264) 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, Morinaga Milk Industry Co's WACC % is 2.45%. Morinaga Milk Industry Co's ROIC % is 5.44% (calculated using TTM income statement data).
Morinaga Milk Industry 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 Packaged Foods subindustry, Morinaga Milk Industry 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.
Morinaga Milk Industry Co ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Morinaga Milk Industry Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Morinaga Milk Industry 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.
Morinaga Milk Industry Co (TSE:2264) has a ROIC % of 3.10% 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 Morinaga Milk Industry Co and its competitors.
Is Morinaga Milk Industry Co's ROIC % too high?
Morinaga Milk Industry Co's current ROIC % is 3.10%. The Consumer Packaged Goods industry median ROIC % is 5.13. Morinaga Milk Industry Co's value of 3.10% is 39.6% below this industry median. Overall, Morinaga Milk Industry Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morinaga Milk Industry Co's ROIC % compare to KHC and GIS?
Morinaga Milk Industry Co's ROIC % of 3.10% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.13. Morinaga Milk Industry Co's value of 3.10% is 39.6% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.13, based on 1,942 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. Morinaga Milk Industry Co's current ROIC % of 3.10% is 39.6% 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 Morinaga Milk Industry Co and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morinaga Milk Industry Co's current ROIC % is 3.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morinaga Milk Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Morinaga Milk Industry Co (TSE:2264) is currently considered Significantly Overvalued. The stock's GF Value™ is 円885.60, compared to a current price of 円1,278.50 — trading 44.4% above its estimated fair value. The current ROIC % is 3.10% and 39.6% below the Consumer Packaged Goods industry median of 5.13. Morinaga Milk Industry Co's overall GF Score™ is 66/100 with 6 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 Morinaga Milk Industry Co (TSE:2264), the current ROIC % is 3.10% 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 Morinaga Milk Industry Co (TSE:2264) Overvalued in 2026?
Based on GuruFocus' analysis, Morinaga Milk Industry Co stock appears to be overvalued.
The current stock price of 円1,278.50 is trading 44.4% above its estimated GF Value™ of 円885.60.
GuruFocus considers Morinaga Milk Industry Co to be Significantly Overvalued.
Key valuation signals for TSE:2264:
ROIC %: 3.10%
GF Value™: 円885.60 vs. price of 円1,278.50 (44.4% above fair value)
Industry Position: 39.6% below the Consumer Packaged Goods median
No single metric tells the full story. See the TSE:2264 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morinaga Milk Industry Co Ltd is a Japanese company engaged in the production and distribution of dairy products. It produces a variety of milk and milk-based products such as dairy-based beverages, yogurt, desserts, condensed milk, powdered milk, butter, cheese, ice cream, clinical liquid diets. It also manufactures and sells animal feed, and constructs plant equipment. The company through its subsidiaries markets its products internationally.
66GF Score
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