ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sato Shoji's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.64%.
As of today (2026-07-11), Sato Shoji's WACC % is 4.66%. Sato Shoji's ROIC % is 4.78% (calculated using TTM income statement data).
Sato Shoji 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.
Sato Shoji (TSE:8065) 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, Sato Shoji's WACC % is 4.66%. Sato Shoji's ROIC % is 4.78% (calculated using TTM income statement data).
Sato Shoji 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.
Sato Shoji ROIC % Related Terms
Sato Shoji ROIC % Historical Data
* Premium members only.
The historical data trend for Sato Shoji'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 Steel subindustry, Sato Shoji'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.
Sato Shoji ROIC % vs Steel Industry
For the Steel industry and Basic Materials sector, Sato Shoji's ROIC % distribution charts can be found below:
* The bar in red indicates where Sato Shoji'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.
Sato Shoji (TSE:8065) has a ROIC % of 6.64% 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 Sato Shoji and its competitors.
Is Sato Shoji's ROIC % too high?
Sato Shoji's current ROIC % is 6.64%. The Steel industry median ROIC % is 2.55. Sato Shoji's value of 6.64% is 160.4% above this industry median. Overall, Sato Shoji has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sato Shoji's ROIC % compare to NUE and STLD?
Sato Shoji's ROIC % of 6.64% can be compared against companies in the Steel industry. The industry median ROIC % is 2.55. Sato Shoji's value of 6.64% is 160.4% 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 Steel company?
The median ROIC % among Steel companies is 2.55, based on 620 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. Sato Shoji's current ROIC % of 6.64% is 160.4% 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 Sato Shoji and its competitors. For the Steel industry, the median ROIC % is 2.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sato Shoji's current ROIC % is 6.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sato Shoji stock overvalued right now?
Based on GuruFocus' analysis, Sato Shoji (TSE:8065) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,654.87, compared to a current price of 円2,990.00 — trading 80.7% above its estimated fair value. The current ROIC % is 6.64% and 160.4% above the Steel industry median of 2.55. Sato Shoji's overall GF Score™ is 66/100 with 2 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 Sato Shoji (TSE:8065), the current ROIC % is 6.64% 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 Sato Shoji (TSE:8065) Overvalued in 2026?
Based on GuruFocus' analysis, Sato Shoji stock appears to be overvalued.
The current stock price of 円2,990.00 is trading 80.7% above its estimated GF Value™ of 円1,654.87.
GuruFocus considers Sato Shoji to be Significantly Overvalued.
Key valuation signals for TSE:8065:
ROIC %: 6.64%
GF Value™: 円1,654.87 vs. price of 円2,990.00 (80.7% above fair value)
No single metric tells the full story. See the TSE:8065 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sato Shoji Corp is a Japanese trading company mainly focused on metals and industrial metals. Along with its subsidiaries, the company operates in the following reportable segments: Iron and Steel, Nonferrous Metals, Electronics, Life Sales, Machinery and Tools, and Business Development. The majority of its revenue is generated from the Iron and Steel business segment, which sells hot-rolled steel sheets, pickled steel sheets, cold-rolled steel sheets, surface-treated steel sheets, steel bars, bar steel, special steel such as structural carbon steel, structural alloy steel, tool steel, and construction materials and equipment mainly to the automobile, construction machinery, bridge, construction, electrical equipment, shipbuilding, and mold industries.
66GF Score
Get the complete analysis for TSE:8065
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:8065 has been successfully added to your 
