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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 %. Chugai Pharmaceutical Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 36.22%.
As of today (2026-07-14), Chugai Pharmaceutical Co's WACC % is 4.94%. Chugai Pharmaceutical Co's ROIC % is 38.31% (calculated using TTM income statement data).
Chugai Pharmaceutical Co 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.
Chugai Pharmaceutical Co (TSE:4519) 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, Chugai Pharmaceutical Co's WACC % is 4.94%. Chugai Pharmaceutical Co's ROIC % is 38.31% (calculated using TTM income statement data).
Chugai Pharmaceutical Co 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.
* 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 Drug Manufacturers - General subindustry, Chugai Pharmaceutical 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.
Chugai Pharmaceutical Co ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Chugai Pharmaceutical Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Chugai Pharmaceutical Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Chugai Pharmaceutical Co (TSE:4519) has a ROIC % of 36.22% 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 Chugai Pharmaceutical Co and its competitors.
Is Chugai Pharmaceutical Co's ROIC % too high?
Chugai Pharmaceutical Co's current ROIC % is 36.22%. The Drug Manufacturers industry median ROIC % is 4.49. Chugai Pharmaceutical Co's value of 36.22% is 707.6% above this industry median. Overall, Chugai Pharmaceutical Co has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chugai Pharmaceutical Co's ROIC % compare to LLY and JNJ?
Chugai Pharmaceutical Co's ROIC % of 36.22% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.49. Chugai Pharmaceutical Co's value of 36.22% is 707.6% 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.49, based on 990 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. Chugai Pharmaceutical Co's current ROIC % of 36.22% is 707.6% 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 Chugai Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chugai Pharmaceutical Co's current ROIC % is 36.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chugai Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Chugai Pharmaceutical Co (TSE:4519) is currently considered Fairly Valued. The stock's GF Value™ is 円7,735.19, compared to a current price of 円7,230.00 — trading 6.5% below its estimated fair value. The current ROIC % is 36.22% and 707.6% above the Drug Manufacturers industry median of 4.49. Chugai Pharmaceutical Co's overall GF Score™ is 96/100 with 1 warning sign 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 Chugai Pharmaceutical Co (TSE:4519), the current ROIC % is 36.22% 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 Chugai Pharmaceutical Co (TSE:4519) Overvalued in 2026?
Based on GuruFocus' analysis, Chugai Pharmaceutical Co stock appears to be undervalued.
The current stock price of 円7,230.00 is trading 6.5% below its estimated GF Value™ of 円7,735.19.
GuruFocus considers Chugai Pharmaceutical Co to be Fairly Valued.
Key valuation signals for TSE:4519:
ROIC %: 36.22%
GF Value™: 円7,735.19 vs. price of 円7,230.00 (6.5% below fair value)
Industry Position: 707.6% above the Drug Manufacturers median
No single metric tells the full story. See the TSE:4519 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chugai Pharmaceutical is a Japanese drug developer and subsidiary of Roche Holding, which owns roughly 60% of the company. Founded in 1925, Chugai deals primarily in the Japanese market, where it generates roughly half of its revenue. It has been the leader in Japan's oncology market for the past decade, largely due to drugs licensed from its parent's portfolio. The company also develops its own innovative medicines. It is an industry leader in antibody technology with several flagship therapies, including Hemlibra (hemophilia), Actemra (rheumatoid arthritis, covid), Foundayo (oral obesity pill), and Nemluvio (atopic dermatitis, prurigo nodularis).
96GF Score
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