ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Osaka Organic Chemical Industry's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2025 was 11.75%.
As of today (2026-07-02), Osaka Organic Chemical Industry's WACC % is 11.80%. Osaka Organic Chemical Industry's ROIC % is 12.28% (calculated using TTM income statement data).
Osaka Organic Chemical Industry 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.
Osaka Organic Chemical Industry (TSE:4187) 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, Osaka Organic Chemical Industry's WACC % is 11.80%. Osaka Organic Chemical Industry's ROIC % is 12.28% (calculated using TTM income statement data).
Osaka Organic Chemical Industry 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.
Osaka Organic Chemical Industry ROIC % Related Terms
Osaka Organic Chemical Industry 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.
For the Specialty Chemicals subindustry, Osaka Organic Chemical Industry'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.
Osaka Organic Chemical Industry ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Osaka Organic Chemical Industry's ROIC % distribution charts can be found below:
* The bar in red indicates where Osaka Organic Chemical Industry's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Nov. 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.
Osaka Organic Chemical Industry (TSE:4187) has a ROIC % of 11.75% as of Nov. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Osaka Organic Chemical Industry and its competitors.
Is Osaka Organic Chemical Industry's ROIC % too high?
Osaka Organic Chemical Industry's current ROIC % is 11.75%. The Chemicals industry median ROIC % is 4.46. Osaka Organic Chemical Industry's value of 11.75% is 163.5% above this industry median. Overall, Osaka Organic Chemical Industry has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Osaka Organic Chemical Industry's ROIC % compare to LIN and SHW?
Osaka Organic Chemical Industry's ROIC % of 11.75% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. Osaka Organic Chemical Industry's value of 11.75% is 163.5% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,580 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. Osaka Organic Chemical Industry's current ROIC % of 11.75% is 163.5% 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 Osaka Organic Chemical Industry and its competitors. For the Chemicals industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Osaka Organic Chemical Industry's current ROIC % is 11.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Osaka Organic Chemical Industry stock overvalued right now?
Based on GuruFocus' analysis, Osaka Organic Chemical Industry (TSE:4187) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,523.78, compared to a current price of 円5,880.00 — trading 66.9% above its estimated fair value. The current ROIC % is 11.75% and 163.5% above the Chemicals industry median of 4.46. Osaka Organic Chemical Industry's overall GF Score™ is 89/100 with 8 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 Osaka Organic Chemical Industry (TSE:4187), the current ROIC % is 11.75% as of Nov. 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 Osaka Organic Chemical Industry (TSE:4187) Overvalued in 2026?
Based on GuruFocus' analysis, Osaka Organic Chemical Industry stock appears to be overvalued.
The current stock price of 円5,880.00 is trading 66.9% above its estimated GF Value™ of 円3,523.78.
GuruFocus considers Osaka Organic Chemical Industry to be Significantly Overvalued.
Key valuation signals for TSE:4187:
ROIC %: 11.75%
GF Value™: 円3,523.78 vs. price of 円5,880.00 (66.9% above fair value)
Industry Position: 163.5% above the Chemicals median
No single metric tells the full story. See the TSE:4187 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Osaka Organic Chemical Industry Business Description
Osaka Organic Chemical Industry Ltd is engaged in the production and marketing of organic chemistry industry products, organic reagents, petrochemical products, and special polymers, refining and processing of solvents. It operates in three segments: Chemical segment manufactures and sells speciality acrylic acid ester and acrylic acid for paints, adhesives and inks. The Electronic Materials segment manufactures and sells electronic materials, such as liquid crystal materials and semiconductors. The Specialty Chemicals segment manufactures and sells cosmetics raw materials and functional materials.
89GF Score
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