ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Diamond Electric Holdings Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.45%.
As of today (2026-07-02), Diamond Electric Holdings Co's WACC % is 1.47%. Diamond Electric Holdings Co's ROIC % is 1.95% (calculated using TTM income statement data).
Diamond Electric Holdings 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.
Diamond Electric Holdings Co (TSE:6699) 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, Diamond Electric Holdings Co's WACC % is 1.47%. Diamond Electric Holdings Co's ROIC % is 1.95% (calculated using TTM income statement data).
Diamond Electric Holdings 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.
Diamond Electric Holdings Co ROIC % Related Terms
Diamond Electric 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 Auto Parts subindustry, Diamond Electric 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.
Diamond Electric Holdings Co ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Diamond Electric Holdings Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Diamond Electric Holdings Co'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.
Diamond Electric Holdings Co (TSE:6699) has a ROIC % of 2.45% 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 Diamond Electric Holdings Co and its competitors.
Is Diamond Electric Holdings Co's ROIC % too high?
Diamond Electric Holdings Co's current ROIC % is 2.45%. The Vehicles & Parts industry median ROIC % is 5.07. Diamond Electric Holdings Co's value of 2.45% is 51.7% below this industry median. Overall, Diamond Electric Holdings Co has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diamond Electric Holdings Co's ROIC % compare to ORLY and AZO?
Diamond Electric Holdings Co's ROIC % of 2.45% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.07. Diamond Electric Holdings Co's value of 2.45% is 51.7% below 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.07, based on 1,314 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. Diamond Electric Holdings Co's current ROIC % of 2.45% is 51.7% below 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 Diamond Electric Holdings Co and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamond Electric Holdings Co's current ROIC % is 2.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamond Electric Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Diamond Electric Holdings Co (TSE:6699) is currently considered Modestly Undervalued. The stock's GF Value™ is 円635.20, compared to a current price of 円474.00 — trading 25.4% below its estimated fair value. The current ROIC % is 2.45% and 51.7% below the Vehicles & Parts industry median of 5.07. Diamond Electric Holdings Co's overall GF Score™ is 53/100 with 3 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 Diamond Electric Holdings Co (TSE:6699), the current ROIC % is 2.45% 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 Diamond Electric Holdings Co (TSE:6699) Overvalued in 2026?
Based on GuruFocus' analysis, Diamond Electric Holdings Co stock appears to be undervalued.
The current stock price of 円474.00 is trading 25.4% below its estimated GF Value™ of 円635.20.
GuruFocus considers Diamond Electric Holdings Co to be Modestly Undervalued.
Key valuation signals for TSE:6699:
ROIC %: 2.45%
GF Value™: 円635.20 vs. price of 円474.00 (25.4% below fair value)
Industry Position: 51.7% below the Vehicles & Parts median
No single metric tells the full story. See the TSE:6699 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamond Electric Holdings Co Ltd is engaged in the manufacture and sale of electronic and energy-related components. The company has three reportable segments: Automotive Equipment Business, Energy Solutions Business, and Electronic Equipment Business. The Automotive Equipment segment manufactures ignition coils, transmission switches, rotation sensors, and in-vehicle control boards. The Energy Solutions segment produces power conditioners for solar power generation and energy storage hybrid systems. The Electronic Equipment segment manufactures electronic control devices for fan heaters, air conditioners, water heaters, and other related products such as ignition devices and power conditioners.
53GF Score
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