ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. True Data's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 22.31%.
As of today (2026-07-12), True Data's WACC % is 3.97%. True Data's ROIC % is 19.60% (calculated using TTM income statement data).
True Data 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.
True Data (TSE:4416) 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, True Data's WACC % is 3.97%. True Data's ROIC % is 19.60% (calculated using TTM income statement data).
True Data 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.
True Data ROIC % Related Terms
True Data ROIC % Historical Data
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The historical data trend for True Data'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 Software - Application subindustry, True Data'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.
True Data ROIC % vs Software Industry
For the Software industry and Technology sector, True Data's ROIC % distribution charts can be found below:
* The bar in red indicates where True Data'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.
True Data (TSE:4416) has a ROIC % of 22.31% 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 True Data and its competitors.
Is True Data's ROIC % too high?
True Data's current ROIC % is 22.31%. The Software industry median ROIC % is 3.09. True Data's value of 22.31% is 622% above this industry median. Overall, True Data has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does True Data's ROIC % compare to UBER and SHOP?
True Data's ROIC % of 22.31% can be compared against companies in the Software industry. The industry median ROIC % is 3.09. True Data's value of 22.31% is 622% 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 3.09, based on 2,829 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. True Data's current ROIC % of 22.31% is 622% 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 True Data and its competitors. For the Software industry, the median ROIC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. True Data's current ROIC % is 22.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is True Data stock overvalued right now?
Based on GuruFocus' analysis, True Data (TSE:4416) is currently considered Modestly Undervalued. The stock's GF Value™ is 円647.97, compared to a current price of 円462.00 — trading 28.7% below its estimated fair value. The current ROIC % is 22.31% and 622% above the Software industry median of 3.09. True Data's overall GF Score™ is 65/100. 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 True Data (TSE:4416), the current ROIC % is 22.31% 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 True Data (TSE:4416) Overvalued in 2026?
Based on GuruFocus' analysis, True Data stock appears to be undervalued.
The current stock price of 円462.00 is trading 28.7% below its estimated GF Value™ of 円647.97.
GuruFocus considers True Data to be Modestly Undervalued.
Key valuation signals for TSE:4416:
ROIC %: 22.31%
GF Value™: 円647.97 vs. price of 円462.00 (28.7% below fair value)
No single metric tells the full story. See the TSE:4416 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
True Data Inc operates a big data platform based on the data generated daily from consumer purchasing behavior. The company deals with POS data with customer IDs from drug stores, supermarkets, and other retailers, and provides analysis and disclosure support tools using such data, as well as other services related to data marketing. Its services are divided into solutions for manufacturers, retailers, and all industries. In the solutions for manufacturers, it provides services such as Eagle Eye, Dolphin Eye, and POS Analysis Cloud. In the solutions for retailers, it offers services such as Shopping Scan, and for all industries, it provides data and analysis reports related to consumer purchases, data utilization support services such as AI, and other related services.
65GF Score
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