ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Two stone & Sons's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2026 was 11.05%.
As of today (2026-06-30), Two stone & Sons's WACC % is 1.90%. Two stone & Sons's ROIC % is 6.08% (calculated using TTM income statement data).
Two stone & Sons 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.
Two stone & Sons (TSE:7352) 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, Two stone & Sons's WACC % is 1.90%. Two stone & Sons's ROIC % is 6.08% (calculated using TTM income statement data).
Two stone & Sons 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.
Two stone & Sons ROIC % Related Terms
Two stone & Sons ROIC % Historical Data
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The historical data trend for Two stone & Sons'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 Specialty Business Services subindustry, Two stone & Sons'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.
Two stone & Sons ROIC % vs Business Services Industry
For the Business Services industry and Industrials sector, Two stone & Sons's ROIC % distribution charts can be found below:
* The bar in red indicates where Two stone & Sons's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Feb. 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.
Two stone & Sons (TSE:7352) has a ROIC % of 11.05% as of Feb. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Two stone & Sons and its competitors.
Is Two stone & Sons' ROIC % too high?
Two stone & Sons' current ROIC % is 11.05%. The Business Services industry median ROIC % is 5.93. Two stone & Sons' value of 11.05% is 86.3% above this industry median. Overall, Two stone & Sons has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Two stone & Sons' ROIC % compare to CTAS and CPRT?
Two stone & Sons' ROIC % of 11.05% can be compared against companies in the Business Services industry. The industry median ROIC % is 5.93. Two stone & Sons' value of 11.05% is 86.3% 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 a Business Services company?
The median ROIC % among Business Services companies is 5.93, based on 1,075 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. Two stone & Sons's current ROIC % of 11.05% is 86.3% 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 Two stone & Sons and its competitors. For the Business Services industry, the median ROIC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two stone & Sons's current ROIC % is 11.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Two stone & Sons stock overvalued right now?
Based on GuruFocus' analysis, Two stone & Sons (TSE:7352) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,423.46, compared to a current price of 円450.00 — trading 68.4% below its estimated fair value. The current ROIC % is 11.05% and 86.3% above the Business Services industry median of 5.93. Two stone & Sons' overall GF Score™ is 75/100 with 4 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 Two stone & Sons (TSE:7352), the current ROIC % is 11.05% as of Feb. 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 Two stone & Sons (TSE:7352) Overvalued in 2026?
Based on GuruFocus' analysis, Two stone & Sons stock appears to be undervalued.
The current stock price of 円450.00 is trading 68.4% below its estimated GF Value™ of 円1,423.46.
GuruFocus considers Two stone & Sons to be Significantly Undervalued.
Key valuation signals for TSE:7352:
ROIC %: 11.05%
GF Value™: 円1,423.46 vs. price of 円450.00 (68.4% below fair value)
Industry Position: 86.3% above the Business Services median
No single metric tells the full story. See the TSE:7352 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Two stone & Sons Inc is an engineering company providing engineering resources to companies, media businesses, and programming school businesses. The company develops services such as in-house media management and client solutions such as contract development.
75GF Score
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