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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 %. Tobu Railway Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 3.10%.
As of today (2026-07-31), Tobu Railway Co's WACC % is 2.09%. Tobu Railway Co's ROIC % is 2.50% (calculated using TTM income statement data).
Tobu Railway 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.
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, Tobu Railway Co's WACC % is 2.09%. Tobu Railway Co's ROIC % is 2.50% (calculated using TTM income statement data).
Tobu Railway 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.
Tobu Railway Co ROIC % Related Terms
Tobu Railway Co ROIC % Historical Data
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The historical data trend for Tobu Railway Co'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 Railroads subindustry, Tobu Railway 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.
Tobu Railway Co ROIC % vs Transportation Industry
For the Transportation industry and Industrials sector, Tobu Railway Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Tobu Railway Co'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.
Tobu Railway Co (TSE:9001) has a ROIC % of 3.10% 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 Tobu Railway Co and its competitors.
Is Tobu Railway Co's ROIC % too high?
Tobu Railway Co's current ROIC % is 3.10%. The Transportation industry median ROIC % is 4.69. Tobu Railway Co's value of 3.10% is 33.9% below this industry median. Overall, Tobu Railway Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tobu Railway Co's ROIC % compare to UNP and CSX?
Tobu Railway Co's ROIC % of 3.10% can be compared against companies in the Transportation industry. The industry median ROIC % is 4.69. Tobu Railway Co's value of 3.10% is 33.9% 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 Transportation company?
The median ROIC % among Transportation companies is 4.69, based on 989 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. Tobu Railway Co's current ROIC % of 3.10% is 33.9% 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 Tobu Railway Co and its competitors. For the Transportation industry, the median ROIC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tobu Railway Co's current ROIC % is 3.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tobu Railway Co stock overvalued right now?
Based on GuruFocus' analysis, Tobu Railway Co (TSE:9001) is currently considered Fairly Valued. The stock's GF Value™ is 円2,938.48, compared to a current price of 円3,141.00 — trading 6.9% above its estimated fair value. The current ROIC % is 3.10% and 33.9% below the Transportation industry median of 4.69. Tobu Railway Co's overall GF Score™ is 74/100 with 3 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 Tobu Railway Co (TSE:9001), the current ROIC % is 3.10% 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 Tobu Railway Co (TSE:9001) Overvalued in 2026?
Based on GuruFocus' analysis, Tobu Railway Co stock appears to be overvalued.
The current stock price of 円3,141.00 is trading 6.9% above its estimated GF Value™ of 円2,938.48.
GuruFocus considers Tobu Railway Co to be Fairly Valued.
Key valuation signals for TSE:9001:
ROIC %: 3.10%
GF Value™: 円2,938.48 vs. price of 円3,141.00 (6.9% above fair value)
Industry Position: 33.9% below the Transportation median
No single metric tells the full story. See the TSE:9001 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tobu Railway Co Ltd is a transportation and industrial company in Japan. The company organises itself into five segments: transportation, leisure, real estate, retail distribution, and others. Transportation, which contributes a portion of revenue, operates passenger transportation services through rail, bus, and taxi, and freight and delivery services. Retail distribution operates department stores and a chain of supermarkets. The leisure segment operates hotels, theme parks, golf courses, and related leisure businesses. The real estate segment leases real estate and operates bicycle and parking lot businesses. The Other business is engaged in the construction industry, electrical work, etc.
74GF Score
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