Showa Paxxs (TSE:3954) ROIC %: 4.54% (As of Mar. 2026)


TSE:3954 Showa Paxxs Corp TSE:3954
57 GF Score
Price 円2,842.00
GF Value 円2,024.86
Valuation Significantly Overvalued
! 2 Warning Signs
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What is Showa Paxxs ROIC %?

Showa Paxxs TSE:3954 +1.68% 57 ROIC % is 4.54% as of Mar. 2026. GuruFocus rates TSE:3954 with a GF Score™ of 57/100 and a GF Value™ of 円2,024.86 (Significantly Overvalued). The stock has 2 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Showa Paxxs's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.54%.

As of today (2026-07-04), Showa Paxxs's WACC % is 2.41%. Showa Paxxs's ROIC % is 5.08% (calculated using TTM income statement data). Showa Paxxs 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.

Showa Paxxs  (TSE:3954) 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, Showa Paxxs's WACC % is 2.41%. Showa Paxxs's ROIC % is 5.08% (calculated using TTM income statement data). Showa Paxxs 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.

Showa Paxxs ROIC % Related Terms

Showa Paxxs ROIC % Historical Data

* Premium members only.

The historical data trend for Showa Paxxs'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.

Showa Paxxs ROIC % Chart

Showa Paxxs Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.94 4.55 3.49 4.65 5.04

Showa Paxxs Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.43 4.95 4.17 5.77 4.54

TSE:3954 vs SW, PKG, IP: ROIC % Comparison

For the Packaging & Containers subindustry, Showa Paxxs'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.

Showa Paxxs ROIC % vs Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Showa Paxxs's ROIC % distribution charts can be found below:

* The bar in red indicates where Showa Paxxs's ROIC % falls into.


TSE:3954
57GF Score
Showa Paxxs Corp TSE:3954
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Showa Paxxs ROIC % Calculation

Showa Paxxs's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2026 is calculated as:

ROIC % (A: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2025 ) + Invested Capital (A: Mar. 2026 ))/ count )
=1632.374 * ( 1 - 30.23% )/( (21177.011 + 24057.79)/ 2 )
=1138.9073398/22617.4005
=5.04 %

where

Invested Capital(A: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=33384.523 - 3263.926 - ( 8943.586 - max(0, 7075.041 - 19260.696+8943.586))
=21177.011

Invested Capital(A: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=36921.064 - 3218.685 - ( 9644.589 - max(0, 6647.811 - 19891.972+9644.589))
=24057.79

Showa Paxxs's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2026 is calculated as:

ROIC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1625.572 * ( 1 - 35.67% )/( (21979.824 + 24057.79)/ 2 )
=1045.7304676/23018.807
=4.54 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=34577.538 - 3228.598 - ( 9369.116 - max(0, 7190.056 - 19578.669+9369.116))
=21979.824

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=36921.064 - 3218.685 - ( 9644.589 - max(0, 6647.811 - 19891.972+9644.589))
=24057.79

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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 4.54% mean?
Showa Paxxs (TSE:3954) has a ROIC % of 4.54% 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 Showa Paxxs and its competitors.
Is Showa Paxxs' ROIC % too high?
Showa Paxxs' current ROIC % is 4.54%. The Packaging & Containers industry median ROIC % is 4.19. Showa Paxxs' value of 4.54% is 8.4% above this industry median. Overall, Showa Paxxs has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Showa Paxxs' ROIC % compare to SW and PKG?
Showa Paxxs' ROIC % of 4.54% can be compared against companies in the Packaging & Containers industry. The industry median ROIC % is 4.19. Showa Paxxs' value of 4.54% is 8.4% 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 Packaging & Containers company?
The median ROIC % among Packaging & Containers companies is 4.19, based on 393 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. Showa Paxxs's current ROIC % of 4.54% is 8.4% 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 Showa Paxxs and its competitors. For the Packaging & Containers industry, the median ROIC % is 4.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa Paxxs's current ROIC % is 4.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa Paxxs stock overvalued right now?
Based on GuruFocus' analysis, Showa Paxxs (TSE:3954) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,024.86, compared to a current price of 円2,842.00 — trading 40.4% above its estimated fair value. The current ROIC % is 4.54% and 8.4% above the Packaging & Containers industry median of 4.19. Showa Paxxs' overall GF Score™ is 57/100 with 2 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 Showa Paxxs (TSE:3954), the current ROIC % is 4.54% 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 Showa Paxxs (TSE:3954) Overvalued in 2026?

Based on GuruFocus' analysis, Showa Paxxs stock appears to be overvalued. The current stock price of 円2,842.00 is trading 40.4% above its estimated GF Value™ of 円2,024.86. GuruFocus considers Showa Paxxs to be Significantly Overvalued.

Key valuation signals for TSE:3954:

  • ROIC %: 4.54%
  • GF Value™: 円2,024.86 vs. price of 円2,842.00 (40.4% above fair value)
  • GF Score™: 57/100 with 2 warning signs
  • Industry Position: 8.4% above the Packaging & Containers median

No single metric tells the full story. See the TSE:3954 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Showa Paxxs Business Description

Address 2-12 Ichigayahonmura-cho, Shinjuku-ku, Tokyo, JPN, 162-0845
Showa Paxxs Corporation is an industrial packaging container manufacturer. It is engaged in manufacturing and selling packaging materials and containers. The products offered by the company include heavy wrapping paper bags, containers, film, and packaging machine equipment systems.
57GF Score

Get the complete analysis for TSE:3954

ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,842.00
Price
円2,024.86
GF Value