ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. GIG Works's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 0.86%.
As of today (2026-07-02), GIG Works's WACC % is -0.28%. GIG Works's ROIC % is 5.58% (calculated using TTM income statement data).
GIG Works 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.
GIG Works (TSE:2375) 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, GIG Works's WACC % is -0.28%. GIG Works's ROIC % is 5.58% (calculated using TTM income statement data).
GIG Works 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.
GIG Works ROIC % Related Terms
GIG Works ROIC % Historical Data
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The historical data trend for GIG Works'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 Information Technology Services subindustry, GIG Works'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.
GIG Works ROIC % vs Software Industry
For the Software industry and Technology sector, GIG Works's ROIC % distribution charts can be found below:
* The bar in red indicates where GIG Works's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Apr. 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.
GIG Works (TSE:2375) has a ROIC % of 0.86% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on GIG Works and its competitors.
Is GIG Works' ROIC % too high?
GIG Works' current ROIC % is 0.86%. The Software industry median ROIC % is 3.05. GIG Works' value of 0.86% is 71.8% below this industry median. Overall, GIG Works has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GIG Works' ROIC % compare to IBM and ACN?
GIG Works' ROIC % of 0.86% can be compared against companies in the Software industry. The industry median ROIC % is 3.05. GIG Works' value of 0.86% is 71.8% 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 Software company?
The median ROIC % among Software companies is 3.05, based on 2,828 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. GIG Works's current ROIC % of 0.86% is 71.8% 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 GIG Works and its competitors. For the Software industry, the median ROIC % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GIG Works's current ROIC % is 0.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GIG Works stock overvalued right now?
Based on GuruFocus' analysis, GIG Works (TSE:2375) is currently considered Modestly Undervalued. The stock's GF Value™ is 円238.82, compared to a current price of 円203.00 — trading 15% below its estimated fair value. The current ROIC % is 0.86% and 71.8% below the Software industry median of 3.05. GIG Works' overall GF Score™ is 65/100 with 1 warning sign 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 GIG Works (TSE:2375), the current ROIC % is 0.86% as of Apr. 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 GIG Works (TSE:2375) Overvalued in 2026?
Based on GuruFocus' analysis, GIG Works stock appears to be undervalued.
The current stock price of 円203.00 is trading 15% below its estimated GF Value™ of 円238.82.
GuruFocus considers GIG Works to be Modestly Undervalued.
Key valuation signals for TSE:2375:
ROIC %: 0.86%
GF Value™: 円238.82 vs. price of 円203.00 (15% below fair value)
Industry Position: 71.8% below the Software median
No single metric tells the full story. See the TSE:2375 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GIG Works Inc is a Japan based company engaged in providing marketing and communication service which include sales agency and sales support service, field support service, contact service, and technology service which include engineering development consignment and staff support service.
65GF Score
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