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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 %. Japan Resistor Mfg Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 0.00%.
As of today (2026-08-24), Japan Resistor Mfg Co's WACC % is 3.32%. Japan Resistor Mfg Co's ROIC % is -0.44% (calculated using TTM income statement data).
Japan Resistor Mfg Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Japan Resistor Mfg Co (TSE:6977) 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, Japan Resistor Mfg Co's WACC % is 3.32%. Japan Resistor Mfg Co's ROIC % is -0.44% (calculated using TTM income statement data).
Japan Resistor Mfg 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.
* 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 Electronic Components subindustry, Japan Resistor Mfg 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.
Japan Resistor Mfg Co ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Japan Resistor Mfg Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Japan Resistor Mfg Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Japan Resistor Mfg Co (TSE:6977) has a ROIC % of 0.00% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Japan Resistor Mfg Co and its competitors.
Is Japan Resistor Mfg Co's ROIC % too high?
Japan Resistor Mfg Co's current ROIC % is 0.00%. Overall, Japan Resistor Mfg Co has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Resistor Mfg Co's ROIC % compare to APH and GLW?
Japan Resistor Mfg Co's ROIC % of 0.00% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.61. 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 4.61, based on 2,439 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. 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 Japan Resistor Mfg Co and its competitors. For the Hardware industry, the median ROIC % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Resistor Mfg Co's current ROIC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Resistor Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Resistor Mfg Co (TSE:6977) is currently considered Significantly Overvalued. The stock's GF Value™ is 円794.08, compared to a current price of 円1,469.00 — trading 85% above its estimated fair value. The current ROIC % is 0.00%. Japan Resistor Mfg Co's overall GF Score™ is 43/100 with 8 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 Japan Resistor Mfg Co (TSE:6977), the current ROIC % is 0.00% as of Jun. 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 Japan Resistor Mfg Co (TSE:6977) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Resistor Mfg Co stock appears to be overvalued.
The current stock price of 円1,469.00 is trading 85% above its estimated GF Value™ of 円794.08.
GuruFocus considers Japan Resistor Mfg Co to be Significantly Overvalued.
Key valuation signals for TSE:6977:
ROIC %: 0.00%
GF Value™: 円794.08 vs. price of 円1,469.00 (85% above fair value)
No single metric tells the full story. See the TSE:6977 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Resistor Mfg Co Ltd is engaged in the manufacture and sale of electronic components (main product groups include resistors, potentiometers, hybrid ICs, and electronic devices). Its product offering comprises fixed and variable resistors, heaters, sensors/potentiometers, hybrid ICs, circuit boards, and units. The company supplies its products to various industries and fields.
43GF Score
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