ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. France Bed Holdings Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 7.30%.
As of today (2026-07-03), France Bed Holdings Co's WACC % is 2.73%. France Bed Holdings Co's ROIC % is 5.61% (calculated using TTM income statement data).
France Bed 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.
France Bed Holdings Co (TSE:7840) 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, France Bed Holdings Co's WACC % is 2.73%. France Bed Holdings Co's ROIC % is 5.61% (calculated using TTM income statement data).
France Bed 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.
* 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 Furnishings, Fixtures & Appliances subindustry, France Bed 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.
France Bed Holdings Co ROIC % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, France Bed Holdings Co's ROIC % distribution charts can be found below:
* The bar in red indicates where France Bed Holdings Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
France Bed Holdings Co (TSE:7840) has a ROIC % of 7.30% 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 France Bed Holdings Co and its competitors.
Is France Bed Holdings Co's ROIC % too high?
France Bed Holdings Co's current ROIC % is 7.30%. The Furnishings, Fixtures & Appliances industry median ROIC % is 3.46. France Bed Holdings Co's value of 7.30% is 111% above this industry median. Overall, France Bed Holdings Co has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does France Bed Holdings Co's ROIC % compare to SN and SGI?
France Bed Holdings Co's ROIC % of 7.30% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROIC % is 3.46. France Bed Holdings Co's value of 7.30% is 111% 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 Furnishings, Fixtures & Appliances company?
The median ROIC % among Furnishings, Fixtures & Appliances companies is 3.46, based on 428 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. France Bed Holdings Co's current ROIC % of 7.30% is 111% 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 France Bed Holdings Co and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROIC % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. France Bed Holdings Co's current ROIC % is 7.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is France Bed Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, France Bed Holdings Co (TSE:7840) is currently considered Fairly Valued. The stock's GF Value™ is 円1,294.37, compared to a current price of 円1,249.00 — trading 3.5% below its estimated fair value. The current ROIC % is 7.30% and 111% above the Furnishings, Fixtures & Appliances industry median of 3.46. France Bed Holdings Co's overall GF Score™ is 69/100. 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 France Bed Holdings Co (TSE:7840), the current ROIC % is 7.30% 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 France Bed Holdings Co (TSE:7840) Overvalued in 2026?
Based on GuruFocus' analysis, France Bed Holdings Co stock appears to be undervalued.
The current stock price of 円1,249.00 is trading 3.5% below its estimated GF Value™ of 円1,294.37.
GuruFocus considers France Bed Holdings Co to be Fairly Valued.
Key valuation signals for TSE:7840:
ROIC %: 7.30%
GF Value™: 円1,294.37 vs. price of 円1,249.00 (3.5% below fair value)
Industry Position: 111% above the Furnishings, Fixtures & Appliances median
No single metric tells the full story. See the TSE:7840 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
France Bed Holdings Co Ltd operates a holding company which provides management plan and audits the business activities of all group companies. It operates through the following divisions: Medical Services Business, Home Furnishing and Health Business, and Others. The Medical Services division manufactures, purchases, leases, retails and wholesales nursing beds and welfare equipment. The Home Furnishing division manufactures, purchases, and wholesales beds, furniture, and bedroom products. The Others division involves the door-to-door selling, sells daily necessities, exhibit hall construction and real estate leasing businesses.
69GF Score
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