ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Honeys Holdings Co's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2025 was 10.29%.
As of today (2026-07-06), Honeys Holdings Co's WACC % is 3.29%. Honeys Holdings Co's ROIC % is 8.55% (calculated using TTM income statement data).
Honeys Holdings 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.
Honeys Holdings Co (TSE:2792) 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, Honeys Holdings Co's WACC % is 3.29%. Honeys Holdings Co's ROIC % is 8.55% (calculated using TTM income statement data).
Honeys Holdings 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.
Honeys Holdings Co ROIC % Related Terms
Honeys Holdings Co ROIC % Historical Data
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The historical data trend for Honeys Holdings 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 Apparel Retail subindustry, Honeys Holdings 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.
Honeys Holdings Co ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Honeys Holdings Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Honeys Holdings Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Nov. 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.
Honeys Holdings Co (TSE:2792) has a ROIC % of 10.29% as of Nov. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Honeys Holdings Co and its competitors.
Is Honeys Holdings Co's ROIC % too high?
Honeys Holdings Co's current ROIC % is 10.29%. The Retail - Cyclical industry median ROIC % is 4.38. Honeys Holdings Co's value of 10.29% is 135.2% above this industry median. Overall, Honeys Holdings Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Honeys Holdings Co's ROIC % compare to TJX and ROST?
Honeys Holdings Co's ROIC % of 10.29% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.38. Honeys Holdings Co's value of 10.29% is 135.2% above 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.38, based on 1,106 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. Honeys Holdings Co's current ROIC % of 10.29% is 135.2% above 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 Honeys Holdings Co and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honeys Holdings Co's current ROIC % is 10.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honeys Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Honeys Holdings Co (TSE:2792) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,807.38, compared to a current price of 円1,419.00 — trading 21.5% below its estimated fair value. The current ROIC % is 10.29% and 135.2% above the Retail - Cyclical industry median of 4.38. Honeys Holdings Co's overall GF Score™ is 64/100. 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 Honeys Holdings Co (TSE:2792), the current ROIC % is 10.29% as of Nov. 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 Honeys Holdings Co (TSE:2792) Overvalued in 2026?
Based on GuruFocus' analysis, Honeys Holdings Co stock appears to be undervalued.
The current stock price of 円1,419.00 is trading 21.5% below its estimated GF Value™ of 円1,807.38.
GuruFocus considers Honeys Holdings Co to be Modestly Undervalued.
Key valuation signals for TSE:2792:
ROIC %: 10.29%
GF Value™: 円1,807.38 vs. price of 円1,419.00 (21.5% below fair value)
Industry Position: 135.2% above the Retail - Cyclical median
No single metric tells the full story. See the TSE:2792 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honeys Holdings Co Ltd is a Japan-based company, engages in the planning, manufacturing, and selling of women's clothing and fashion accessories The company offers its products under the brands named CINEMA CLUB, GLACIER, COLZA and Comfort Basic through specialty retail stores located in suburban shopping malls and station buildings, as well as online shopping site.
64GF Score
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