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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 %. Tokyo Individualized Educational Institute's annualized return on invested capital (ROIC %) for the quarter that ended in Aug. 2025 was 6.36%.
As of today (2026-07-27), Tokyo Individualized Educational Institute's WACC % is 8.67%. Tokyo Individualized Educational Institute's ROIC % is 18.32% (calculated using TTM income statement data).
Tokyo Individualized Educational Institute 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.
Tokyo Individualized Educational Institute (TSE:4745) 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, Tokyo Individualized Educational Institute's WACC % is 8.67%. Tokyo Individualized Educational Institute's ROIC % is 18.32% (calculated using TTM income statement data).
Tokyo Individualized Educational Institute 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.
Tokyo Individualized Educational Institute ROIC % Related Terms
Tokyo Individualized Educational Institute 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.
Tokyo Individualized Educational Institute ROIC % Chart
Tokyo Individualized Educational Institute Annual Data
For the Education & Training Services subindustry, Tokyo Individualized Educational Institute'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.
Tokyo Individualized Educational Institute ROIC % vs Education Industry
Note:
The Operating Income data used here is two times the semi-annual (Aug. 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.
Tokyo Individualized Educational Institute (TSE:4745) has a ROIC % of 6.36% as of Aug. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Tokyo Individualized Educational Institute and its competitors.
Is Tokyo Individualized Educational Institute's ROIC % too high?
Tokyo Individualized Educational Institute's current ROIC % is 6.36%. The Education industry median ROIC % is 5.04. Tokyo Individualized Educational Institute's value of 6.36% is 26.2% above this industry median. Overall, Tokyo Individualized Educational Institute has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Tokyo Individualized Educational Institute's ROIC % compare to EDU and TAL?
Tokyo Individualized Educational Institute's ROIC % of 6.36% can be compared against companies in the Education industry. The industry median ROIC % is 5.04. Tokyo Individualized Educational Institute's value of 6.36% is 26.2% 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 an Education company?
The median ROIC % among Education companies is 5.04, based on 259 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. Tokyo Individualized Educational Institute's current ROIC % of 6.36% is 26.2% 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 Tokyo Individualized Educational Institute and its competitors. For the Education industry, the median ROIC % is 5.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokyo Individualized Educational Institute's current ROIC % is 6.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Individualized Educational Institute stock overvalued right now?
Tokyo Individualized Educational Institute (TSE:4745) has a current ROIC % of 6.36%. The stock's GF Value™ is 円467.68, compared to a current price of 円444.00 — trading 5.1% below its estimated fair value. The current ROIC % is 6.36% and 26.2% above the Education industry median of 5.04. Tokyo Individualized Educational Institute's overall GF Score™ is 68/100 with 6 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 Tokyo Individualized Educational Institute (TSE:4745), the current ROIC % is 6.36% as of Aug. 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 Tokyo Individualized Educational Institute (TSE:4745) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Individualized Educational Institute stock appears to be undervalued.
The current stock price of 円444.00 is trading 5.1% below its estimated GF Value™ of 円467.68.
Key valuation signals for TSE:4745:
ROIC %: 6.36%
GF Value™: 円467.68 vs. price of 円444.00 (5.1% below fair value)
Industry Position: 26.2% above the Education median
No single metric tells the full story. See the TSE:4745 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Individualized Educational Institute Business Description
Tokyo Individualized Educational Institute Inc is a Japan based company engaged in providing educational services. It operates private preparatory schools; and provides semi-private tutorial services in Tokyo, Kansai, Tokai, and Kyushu areas.
68GF Score
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