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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 %. Awa Paper & Technological Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.95%.
As of today (2026-07-14), Awa Paper & Technological Co's WACC % is 1.86%. Awa Paper & Technological Co's ROIC % is 0.18% (calculated using TTM income statement data).
Awa Paper & Technological Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Awa Paper & Technological Co (TSE:3896) 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, Awa Paper & Technological Co's WACC % is 1.86%. Awa Paper & Technological Co's ROIC % is 0.18% (calculated using TTM income statement data).
Awa Paper & Technological 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.
Awa Paper & Technological Co ROIC % Related Terms
Awa Paper & Technological Co ROIC % Historical Data
* 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.
Awa Paper & Technological Co ROIC % Competitor Comparison
For the Paper & Paper Products subindustry, Awa Paper & Technological 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.
Awa Paper & Technological Co ROIC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Awa Paper & Technological Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Awa Paper & Technological 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.
Awa Paper & Technological Co (TSE:3896) has a ROIC % of 1.95% 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 Awa Paper & Technological Co and its competitors.
Is Awa Paper & Technological Co's ROIC % too high?
Awa Paper & Technological Co's current ROIC % is 1.95%. The Forest Products industry median ROIC % is 1.57. Awa Paper & Technological Co's value of 1.95% is 24.2% above this industry median. Overall, Awa Paper & Technological Co has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Awa Paper & Technological Co's ROIC % compare to competitors?
Awa Paper & Technological Co's ROIC % of 1.95% can be compared against companies in the Forest Products industry. The industry median ROIC % is 1.57. Awa Paper & Technological Co's value of 1.95% is 24.2% 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 Forest Products company?
The median ROIC % among Forest Products companies is 1.57, based on 278 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. Awa Paper & Technological Co's current ROIC % of 1.95% is 24.2% 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 Awa Paper & Technological Co and its competitors. For the Forest Products industry, the median ROIC % is 1.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Awa Paper & Technological Co's current ROIC % is 1.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Awa Paper & Technological Co stock overvalued right now?
Based on GuruFocus' analysis, Awa Paper & Technological Co (TSE:3896) is currently considered Modestly Undervalued. The stock's GF Value™ is 円499.08, compared to a current price of 円366.00 — trading 26.7% below its estimated fair value. The current ROIC % is 1.95% and 24.2% above the Forest Products industry median of 1.57. Awa Paper & Technological Co's overall GF Score™ is 56/100 with 7 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 Awa Paper & Technological Co (TSE:3896), the current ROIC % is 1.95% 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 Awa Paper & Technological Co (TSE:3896) Overvalued in 2026?
Based on GuruFocus' analysis, Awa Paper & Technological Co stock appears to be undervalued.
The current stock price of 円366.00 is trading 26.7% below its estimated GF Value™ of 円499.08.
GuruFocus considers Awa Paper & Technological Co to be Modestly Undervalued.
Key valuation signals for TSE:3896:
ROIC %: 1.95%
GF Value™: 円499.08 vs. price of 円366.00 (26.7% below fair value)
Industry Position: 24.2% above the Forest Products median
No single metric tells the full story. See the TSE:3896 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Awa Paper & Technological Co Inc is engaged in manufacturing and selling papers. The company provides air filter media, polyolefin sheets, base papers, cabin filter media, heat radiation sheets and fins, carbon fiber reinforced plastics, ceramic sheets, and cushion papers, as well as graphitic, carbon fiber, activated carbon fiber, and activated carbon.
56GF Score
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