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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 %. Tokai Tokyo Financial Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.97%.
As of today (2026-07-14), Tokai Tokyo Financial Holdings's WACC % is 0.89%. Tokai Tokyo Financial Holdings's ROIC % is 1.09% (calculated using TTM income statement data).
Tokai Tokyo Financial Holdings 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.
Tokai Tokyo Financial Holdings (TSE:8616) 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, Tokai Tokyo Financial Holdings's WACC % is 0.89%. Tokai Tokyo Financial Holdings's ROIC % is 1.09% (calculated using TTM income statement data).
Tokai Tokyo Financial Holdings 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.
Tokai Tokyo Financial Holdings ROIC % Related Terms
Tokai Tokyo Financial Holdings ROIC % Historical Data
* 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, Tokai Tokyo 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.
Tokai Tokyo Financial Holdings ROIC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Tokai Tokyo Financial Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Tokai Tokyo Financial Holdings'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.
Tokai Tokyo Financial Holdings (TSE:8616) has a ROIC % of 0.97% 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 Tokai Tokyo Financial Holdings and its competitors.
Is Tokai Tokyo Financial Holdings' ROIC % too high?
Tokai Tokyo Financial Holdings' current ROIC % is 0.97%. The Capital Markets industry median ROIC % is 1.34. Tokai Tokyo Financial Holdings' value of 0.97% is 27.3% below this industry median. Overall, Tokai Tokyo Financial Holdings has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokai Tokyo Financial Holdings' ROIC % compare to MS and GS?
Tokai Tokyo Financial Holdings' ROIC % of 0.97% can be compared against companies in the Capital Markets industry. The industry median ROIC % is 1.34. Tokai Tokyo Financial Holdings' value of 0.97% is 27.3% 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 1.34, 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. Tokai Tokyo Financial Holdings's current ROIC % of 0.97% is 27.3% 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 Tokai Tokyo Financial Holdings and its competitors. For the Capital Markets industry, the median ROIC % is 1.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Tokyo Financial Holdings's current ROIC % is 0.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Tokyo Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tokai Tokyo Financial Holdings (TSE:8616) is currently considered Modestly Overvalued. The stock's GF Value™ is 円627.65, compared to a current price of 円774.00 — trading 23.3% above its estimated fair value. The current ROIC % is 0.97% and 27.3% below the Capital Markets industry median of 1.34. Tokai Tokyo Financial Holdings' overall GF Score™ is 72/100 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 Tokai Tokyo Financial Holdings (TSE:8616), the current ROIC % is 0.97% 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 Tokai Tokyo Financial Holdings (TSE:8616) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Tokyo Financial Holdings stock appears to be overvalued.
The current stock price of 円774.00 is trading 23.3% above its estimated GF Value™ of 円627.65.
GuruFocus considers Tokai Tokyo Financial Holdings to be Modestly Overvalued.
Key valuation signals for TSE:8616:
ROIC %: 0.97%
GF Value™: 円627.65 vs. price of 円774.00 (23.3% above fair value)
Industry Position: 27.3% below the Capital Markets median
No single metric tells the full story. See the TSE:8616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Tokyo Financial Holdings Business Description
Tokai Tokyo Financial Holdings Inc. is the holding company of the Tokai Tokyo Financial Group. It operates and manages the group's companies. Tokai Tokyo Financial Group consists primarily of companies in Japan, but a few are in overseas markets. Tokyo Securities is the operating nucleus of the group and manages financial instruments businesses, fund management, back-office services, and research. For the overall group, operations are divided into trading activities and commissions. Tokai's commissions are gained through brokerage services and underwriting and distribution.
72GF Score
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