ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kubota Pharmaceutical Holdings Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -796.46%.
As of today (2026-07-01), Kubota Pharmaceutical Holdings Co's WACC % is 14.43%. Kubota Pharmaceutical Holdings Co's ROIC % is -356.56% (calculated using TTM income statement data).
Kubota Pharmaceutical Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kubota Pharmaceutical Holdings Co (TSE:4596) 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, Kubota Pharmaceutical Holdings Co's WACC % is 14.43%. Kubota Pharmaceutical Holdings Co's ROIC % is -356.56% (calculated using TTM income statement data).
Kubota Pharmaceutical Holdings 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.
Kubota Pharmaceutical Holdings Co ROIC % Related Terms
Kubota Pharmaceutical Holdings 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.
For the Biotechnology subindustry, Kubota Pharmaceutical Holdings 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.
Kubota Pharmaceutical Holdings Co ROIC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Kubota Pharmaceutical Holdings Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Kubota Pharmaceutical Holdings 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.
Kubota Pharmaceutical Holdings Co (TSE:4596) has a ROIC % of -796.46% 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 Kubota Pharmaceutical Holdings Co and its competitors.
Is Kubota Pharmaceutical Holdings Co's ROIC % too high?
Kubota Pharmaceutical Holdings Co's current ROIC % is -796.46%. Overall, Kubota Pharmaceutical Holdings Co has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kubota Pharmaceutical Holdings Co's ROIC % compare to VRTX and REGN?
Kubota Pharmaceutical Holdings Co's ROIC % of -796.46% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROIC % depends on the Biotechnology industry context. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Kubota Pharmaceutical Holdings Co and its competitors. Kubota Pharmaceutical Holdings Co's current ROIC % is -796.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kubota Pharmaceutical Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Kubota Pharmaceutical Holdings Co (TSE:4596) is currently considered Significantly Overvalued. The stock's GF Value™ is 円39.97, compared to a current price of 円55.00 — trading 37.6% above its estimated fair value. The current ROIC % is -796.46%. Kubota Pharmaceutical Holdings Co's overall GF Score™ is 49/100 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 Kubota Pharmaceutical Holdings Co (TSE:4596), the current ROIC % is -796.46% 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 Kubota Pharmaceutical Holdings Co (TSE:4596) Overvalued in 2026?
Based on GuruFocus' analysis, Kubota Pharmaceutical Holdings Co stock appears to be overvalued.
The current stock price of 円55.00 is trading 37.6% above its estimated GF Value™ of 円39.97.
GuruFocus considers Kubota Pharmaceutical Holdings Co to be Significantly Overvalued.
Key valuation signals for TSE:4596:
ROIC %: -796.46%
GF Value™: 円39.97 vs. price of 円55.00 (37.6% above fair value)
No single metric tells the full story. See the TSE:4596 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kubota Pharmaceutical Holdings Co Business Description
Kubota Pharmaceutical Holdings Co Ltd is a Japanese company providing portfolio of drugs and devices to preserve and restore millions of people. It identifies and develops therapeutics to treat the opthalmic disorder and operations incidental or related thereto. Its pipeline products include VCM-Emixustat HCI, Lanosterol and Optogenetics.
49GF Score
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