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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 %. Generation Pass Co's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 8.84%.
As of today (2026-07-17), Generation Pass Co's WACC % is 4.37%. Generation Pass Co's ROIC % is 5.60% (calculated using TTM income statement data).
Generation Pass 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.
Generation Pass Co (TSE:3195) 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, Generation Pass Co's WACC % is 4.37%. Generation Pass Co's ROIC % is 5.60% (calculated using TTM income statement data).
Generation Pass 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.
Generation Pass Co ROIC % Related Terms
Generation Pass Co ROIC % Historical Data
* Premium members only.
The historical data trend for Generation Pass 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 Internet Retail subindustry, Generation Pass 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.
Generation Pass Co ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Generation Pass Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Generation Pass Co'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.
Generation Pass Co (TSE:3195) has a ROIC % of 8.84% 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 Generation Pass Co and its competitors.
Is Generation Pass Co's ROIC % too high?
Generation Pass Co's current ROIC % is 8.84%. The Retail - Cyclical industry median ROIC % is 4.30. Generation Pass Co's value of 8.84% is 105.6% above this industry median. Overall, Generation Pass Co has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Generation Pass Co's ROIC % compare to AMZN and BABA?
Generation Pass Co's ROIC % of 8.84% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.30. Generation Pass Co's value of 8.84% is 105.6% 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 4.30, based on 1,111 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. Generation Pass Co's current ROIC % of 8.84% is 105.6% 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 Generation Pass Co and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Generation Pass Co's current ROIC % is 8.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Generation Pass Co stock overvalued right now?
Based on GuruFocus' analysis, Generation Pass Co (TSE:3195) is currently considered Significantly Overvalued. The stock's GF Value™ is 円324.88, compared to a current price of 円567.00 — trading 74.5% above its estimated fair value. The current ROIC % is 8.84% and 105.6% above the Retail - Cyclical industry median of 4.30. Generation Pass Co's overall GF Score™ is 51/100 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 Generation Pass Co (TSE:3195), the current ROIC % is 8.84% 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 Generation Pass Co (TSE:3195) Overvalued in 2026?
Based on GuruFocus' analysis, Generation Pass Co stock appears to be overvalued.
The current stock price of 円567.00 is trading 74.5% above its estimated GF Value™ of 円324.88.
GuruFocus considers Generation Pass Co to be Significantly Overvalued.
Key valuation signals for TSE:3195:
ROIC %: 8.84%
GF Value™: 円324.88 vs. price of 円567.00 (74.5% above fair value)
Industry Position: 105.6% above the Retail - Cyclical median
No single metric tells the full story. See the TSE:3195 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Generation Pass Co Ltd provides e-commerce marketing and support services in Japan. The company's operating segments include EC Marketing Business and Product Planning related business. The EC Marketing Business involves collecting and analyzing big data from EC sites operated by the group. The Product Planning related segment is a project that utilizes the product data acquired by the company's EC marketing business, and mainly engages in planning and development of products in collaboration with manufacturers.
51GF Score
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