ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ad-Sol Nissin's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 25.69%.
As of today (2026-07-02), Ad-Sol Nissin's WACC % is 5.01%. Ad-Sol Nissin's ROIC % is 26.12% (calculated using TTM income statement data).
Ad-Sol Nissin 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.
Ad-Sol Nissin (TSE:3837) 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, Ad-Sol Nissin's WACC % is 5.01%. Ad-Sol Nissin's ROIC % is 26.12% (calculated using TTM income statement data).
Ad-Sol Nissin 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.
Ad-Sol Nissin ROIC % Related Terms
Ad-Sol Nissin ROIC % Historical Data
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The historical data trend for Ad-Sol Nissin'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, Ad-Sol Nissin'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.
Ad-Sol Nissin ROIC % vs Software Industry
For the Software industry and Technology sector, Ad-Sol Nissin's ROIC % distribution charts can be found below:
* The bar in red indicates where Ad-Sol Nissin'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.
Ad-Sol Nissin (TSE:3837) has a ROIC % of 25.69% 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 Ad-Sol Nissin and its competitors.
Is Ad-Sol Nissin's ROIC % too high?
Ad-Sol Nissin's current ROIC % is 25.69%. The Software industry median ROIC % is 3.05. Ad-Sol Nissin's value of 25.69% is 743.7% above this industry median. Overall, Ad-Sol Nissin has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ad-Sol Nissin's ROIC % compare to IBM and ACN?
Ad-Sol Nissin's ROIC % of 25.69% can be compared against companies in the Software industry. The industry median ROIC % is 3.05. Ad-Sol Nissin's value of 25.69% is 743.7% 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 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. Ad-Sol Nissin's current ROIC % of 25.69% is 743.7% 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 Ad-Sol Nissin 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. Ad-Sol Nissin's current ROIC % is 25.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ad-Sol Nissin stock overvalued right now?
Based on GuruFocus' analysis, Ad-Sol Nissin (TSE:3837) is currently considered Fairly Valued. The stock's GF Value™ is 円1,267.21, compared to a current price of 円1,382.00 — trading 9.1% above its estimated fair value. The current ROIC % is 25.69% and 743.7% above the Software industry median of 3.05. Ad-Sol Nissin's overall GF Score™ is 96/100. 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 Ad-Sol Nissin (TSE:3837), the current ROIC % is 25.69% 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 Ad-Sol Nissin (TSE:3837) Overvalued in 2026?
Based on GuruFocus' analysis, Ad-Sol Nissin stock appears to be overvalued.
The current stock price of 円1,382.00 is trading 9.1% above its estimated GF Value™ of 円1,267.21.
GuruFocus considers Ad-Sol Nissin to be Fairly Valued.
Key valuation signals for TSE:3837:
ROIC %: 25.69%
GF Value™: 円1,267.21 vs. price of 円1,382.00 (9.1% above fair value)
Industry Position: 743.7% above the Software median
No single metric tells the full story. See the TSE:3837 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ad-Sol Nissin Corp develops information systems for enterprises. The company's segments include: Social Infrastructure Business, Advanced Industry Business. The Social Infrastructure Business develops system integration services in social infrastructures such as energy, road, aerospace, and others. Advanced Industry Business promotes Next Generation EV Vehicle, Industrial Equipment, and others.
96GF Score
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