ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. GMO Financial Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 0.42%.
As of today (2026-07-04), GMO Financial Holdings's WACC % is 1.58%. GMO Financial Holdings's ROIC % is 0.95% (calculated using TTM income statement data).
GMO Financial Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, GMO Financial Holdings's WACC % is 1.58%. GMO Financial Holdings's ROIC % is 0.95% (calculated using TTM income statement data).
GMO Financial Holdings 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 Capital Markets subindustry, GMO Financial Holdings'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.
GMO Financial Holdings ROIC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, GMO Financial Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where GMO Financial Holdings's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Dec. 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.
GMO Financial Holdings (TSE:7177) has a ROIC % of 0.42% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on GMO Financial Holdings and its competitors.
Is GMO Financial Holdings' ROIC % too high?
GMO Financial Holdings' current ROIC % is 0.42%. The Capital Markets industry median ROIC % is 1.27. GMO Financial Holdings' value of 0.42% is 66.9% below this industry median. Overall, GMO Financial Holdings has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GMO Financial Holdings' ROIC % compare to MS and GS?
GMO Financial Holdings' ROIC % of 0.42% can be compared against companies in the Capital Markets industry. The industry median ROIC % is 1.27. GMO Financial Holdings' value of 0.42% is 66.9% 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 Capital Markets company?
The median ROIC % among Capital Markets companies is 1.27, based on 698 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. GMO Financial Holdings's current ROIC % of 0.42% is 66.9% 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 GMO Financial Holdings and its competitors. For the Capital Markets industry, the median ROIC % is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GMO Financial Holdings's current ROIC % is 0.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMO Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, GMO Financial Holdings (TSE:7177) is currently considered Significantly Overvalued. The stock's GF Value™ is 円699.24, compared to a current price of 円1,029.00 — trading 47.2% above its estimated fair value. The current ROIC % is 0.42% and 66.9% below the Capital Markets industry median of 1.27. GMO Financial Holdings' overall GF Score™ is 71/100 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 GMO Financial Holdings (TSE:7177), the current ROIC % is 0.42% as of Dec. 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 GMO Financial Holdings (TSE:7177) Overvalued in 2026?
Based on GuruFocus' analysis, GMO Financial Holdings stock appears to be overvalued.
The current stock price of 円1,029.00 is trading 47.2% above its estimated GF Value™ of 円699.24.
GuruFocus considers GMO Financial Holdings to be Significantly Overvalued.
Key valuation signals for TSE:7177:
ROIC %: 0.42%
GF Value™: 円699.24 vs. price of 円1,029.00 (47.2% above fair value)
Industry Position: 66.9% below the Capital Markets median
No single metric tells the full story. See the TSE:7177 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GMO Financial Holdings Inc is a Japan-based holding company that is principally engaged in providing financial product trading services in Japan and overseas markets and operates under two segments-securities and FX business and Cryptocurrency business. The company operates through various subsidiaries, such as GMO Click Securities and FX Prime from GMO Corp. in Japan; and GMO-Z.com Forex HK Limited, GMO-Z.com Bullion HK Limited, and GMO-Z.com Trade UK Limited in Hong Kong and the United Kingdom. Through the above subsidiaries, the company is involved in activities including foreign exchange trading, bullion trading, CFD trading, and others.
71GF Score
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