ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nihon Chouzai Co's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was 6.29%.
As of today (2026-07-01), Nihon Chouzai Co's WACC % is 5.96%. Nihon Chouzai Co's ROIC % is 1.82% (calculated using TTM income statement data).
Nihon Chouzai Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Nihon Chouzai Co (TSE:3341) 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, Nihon Chouzai Co's WACC % is 5.96%. Nihon Chouzai Co's ROIC % is 1.82% (calculated using TTM income statement data).
Nihon Chouzai Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Nihon Chouzai Co ROIC % Related Terms
Nihon Chouzai Co ROIC % Historical Data
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The historical data trend for Nihon Chouzai 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 Pharmaceutical Retailers subindustry, Nihon Chouzai 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.
Nihon Chouzai Co ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Nihon Chouzai Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Nihon Chouzai Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Sep. 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.
Nihon Chouzai Co (TSE:3341) has a ROIC % of 6.29% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Nihon Chouzai Co and its competitors.
Is Nihon Chouzai Co's ROIC % too high?
Nihon Chouzai Co's current ROIC % is 6.29%. The Healthcare Providers & Services industry median ROIC % is 3.06. Nihon Chouzai Co's value of 6.29% is 105.6% above this industry median. Overall, Nihon Chouzai Co has a GF Score™ of 51/100, reflecting its overall financial health beyond just this single metric.
How does Nihon Chouzai Co's ROIC % compare to competitors?
Nihon Chouzai Co's ROIC % of 6.29% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.06. Nihon Chouzai Co's value of 6.29% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.06, based on 669 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. Nihon Chouzai Co's current ROIC % of 6.29% 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 Nihon Chouzai Co and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Chouzai Co's current ROIC % is 6.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Chouzai Co stock overvalued right now?
Nihon Chouzai Co (TSE:3341) has a current ROIC % of 6.29%. The stock's GF Value™ is 円1,563.20, compared to a current price of 円3,925.00 — trading 151.1% above its estimated fair value. The current ROIC % is 6.29% and 105.6% above the Healthcare Providers & Services industry median of 3.06. Nihon Chouzai Co's overall GF Score™ is 51/100 with 10 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 Nihon Chouzai Co (TSE:3341), the current ROIC % is 6.29% as of Sep. 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 Nihon Chouzai Co (TSE:3341) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Chouzai Co stock appears to be overvalued.
The current stock price of 円3,925.00 is trading 151.1% above its estimated GF Value™ of 円1,563.20.
Key valuation signals for TSE:3341:
ROIC %: 6.29%
GF Value™: 円1,563.20 vs. price of 円3,925.00 (151.1% above fair value)
Industry Position: 105.6% above the Healthcare Providers & Services median
No single metric tells the full story. See the TSE:3341 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Chouzai Co Ltd operates in the pharmaceutical industry. The company is organized into segments: Pharmacy, Pharmaceutical Manufacturing and Sales, and Healthcare Staffing Services and operates mainly from Japan. Through its operating segments, the firm manages a chain of pharmacies nationwide, manufactures and sells generic drugs, and provides staffing services that are specialized in pharmacy.
51GF Score
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