ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Leader Electronics's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.89%.
As of today (2026-07-02), Leader Electronics's WACC % is 4.25%. Leader Electronics's ROIC % is 0.35% (calculated using TTM income statement data).
Leader Electronics earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Leader Electronics (TSE:6867) 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, Leader Electronics's WACC % is 4.25%. Leader Electronics's ROIC % is 0.35% (calculated using TTM income statement data).
Leader Electronics 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.
Leader Electronics ROIC % Related Terms
Leader Electronics ROIC % Historical Data
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The historical data trend for Leader Electronics'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 Scientific & Technical Instruments subindustry, Leader Electronics'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.
Leader Electronics ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Leader Electronics's ROIC % distribution charts can be found below:
* The bar in red indicates where Leader Electronics'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.
Leader Electronics (TSE:6867) has a ROIC % of 2.89% 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 Leader Electronics and its competitors.
Is Leader Electronics' ROIC % too high?
Leader Electronics' current ROIC % is 2.89%. The Hardware industry median ROIC % is 4.11. Leader Electronics' value of 2.89% is 29.7% below this industry median. Overall, Leader Electronics has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Leader Electronics' ROIC % compare to COHR and KEYS?
Leader Electronics' ROIC % of 2.89% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.11. Leader Electronics' value of 2.89% is 29.7% 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 Hardware company?
The median ROIC % among Hardware companies is 4.11, based on 2,447 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. Leader Electronics's current ROIC % of 2.89% is 29.7% 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 Leader Electronics and its competitors. For the Hardware industry, the median ROIC % is 4.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leader Electronics's current ROIC % is 2.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leader Electronics stock overvalued right now?
Based on GuruFocus' analysis, Leader Electronics (TSE:6867) is currently considered Modestly Undervalued. The stock's GF Value™ is 円510.25, compared to a current price of 円423.00 — trading 17.1% below its estimated fair value. The current ROIC % is 2.89% and 29.7% below the Hardware industry median of 4.11. Leader Electronics' overall GF Score™ is 62/100 with 5 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 Leader Electronics (TSE:6867), the current ROIC % is 2.89% 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 Leader Electronics (TSE:6867) Overvalued in 2026?
Based on GuruFocus' analysis, Leader Electronics stock appears to be undervalued.
The current stock price of 円423.00 is trading 17.1% below its estimated GF Value™ of 円510.25.
GuruFocus considers Leader Electronics to be Modestly Undervalued.
Key valuation signals for TSE:6867:
ROIC %: 2.89%
GF Value™: 円510.25 vs. price of 円423.00 (17.1% below fair value)
Industry Position: 29.7% below the Hardware median
No single metric tells the full story. See the TSE:6867 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leader Electronics Corp is engaged in the research, development, manufacturing, and sales of electronic measuring instruments, including those for broadcasting stations, manufacturers of professional video-related equipment, and signal monitoring during live broadcasts of sporting events.
62GF Score
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