ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kitabo Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -12.47%.
As of today (2026-07-02), Kitabo Co's WACC % is 2.54%. Kitabo Co's ROIC % is -7.47% (calculated using TTM income statement data).
Kitabo Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kitabo Co (TSE:3409) 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, Kitabo Co's WACC % is 2.54%. Kitabo Co's ROIC % is -7.47% (calculated using TTM income statement data).
Kitabo 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.
Kitabo Co ROIC % Related Terms
Kitabo Co ROIC % Historical Data
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The historical data trend for Kitabo 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 Textile Manufacturing subindustry, Kitabo 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.
Kitabo Co ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Kitabo Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Kitabo Co's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Kitabo Co (TSE:3409) has a ROIC % of -12.47% 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 Kitabo Co and its competitors.
Is Kitabo Co's ROIC % too high?
Kitabo Co's current ROIC % is -12.47%. Overall, Kitabo Co has a GF Score™ of 50/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kitabo Co's ROIC % compare to competitors?
Kitabo Co's ROIC % of -12.47% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. 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 Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,045 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. 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 Kitabo Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kitabo Co's current ROIC % is -12.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kitabo Co stock overvalued right now?
Based on GuruFocus' analysis, Kitabo Co (TSE:3409) is currently considered Fairly Valued. The stock's GF Value™ is 円89.79, compared to a current price of 円91.00 — trading 1.3% above its estimated fair value. The current ROIC % is -12.47%. Kitabo Co's overall GF Score™ is 50/100 with 5 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 Kitabo Co (TSE:3409), the current ROIC % is -12.47% 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 Kitabo Co (TSE:3409) Overvalued in 2026?
Based on GuruFocus' analysis, Kitabo Co stock appears to be overvalued.
The current stock price of 円91.00 is trading 1.3% above its estimated GF Value™ of 円89.79.
GuruFocus considers Kitabo Co to be Fairly Valued.
Key valuation signals for TSE:3409:
ROIC %: -12.47%
GF Value™: 円89.79 vs. price of 円91.00 (1.3% above fair value)
No single metric tells the full story. See the TSE:3409 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kitabo Co Ltd is a Japan-based company that engages in the business, which is divided into spinning, textile, healthcare, and recycling businesses. The spinning business is mainly engaged in the manufacture and sale of synthetic spun yarn. The textile business is mainly engaged in the sale of fabrics for ethnic costumes in the Middle East. The healthcare business is mainly engaged in the manufacture and sale of nonwoven masks, the manufacture of other hygiene products, and the planning and sale of functional foods.
50GF Score
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