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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 %. Japan Ecosystem Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.87%.
As of today (2026-07-14), Japan Ecosystem Co's WACC % is 5.03%. Japan Ecosystem Co's ROIC % is 3.61% (calculated using TTM income statement data).
Japan Ecosystem Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Japan Ecosystem Co (TSE:9249) 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, Japan Ecosystem Co's WACC % is 5.03%. Japan Ecosystem Co's ROIC % is 3.61% (calculated using TTM income statement data).
Japan Ecosystem Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Japan Ecosystem Co ROIC % Related Terms
Japan Ecosystem Co ROIC % Historical Data
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The historical data trend for Japan Ecosystem 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 Entertainment subindustry, Japan Ecosystem 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.
Japan Ecosystem Co ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Japan Ecosystem Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Japan Ecosystem Co's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Japan Ecosystem Co (TSE:9249) has a ROIC % of 9.87% 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 Japan Ecosystem Co and its competitors.
Is Japan Ecosystem Co's ROIC % too high?
Japan Ecosystem Co's current ROIC % is 9.87%. The Media - Diversified industry median ROIC % is 1.39. Japan Ecosystem Co's value of 9.87% is 610.1% above this industry median. Overall, Japan Ecosystem Co has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Japan Ecosystem Co's ROIC % compare to NFLX and DIS?
Japan Ecosystem Co's ROIC % of 9.87% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.39. Japan Ecosystem Co's value of 9.87% is 610.1% 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 Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.39, based on 1,007 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. Japan Ecosystem Co's current ROIC % of 9.87% is 610.1% 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 Japan Ecosystem Co and its competitors. For the Media - Diversified industry, the median ROIC % is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Ecosystem Co's current ROIC % is 9.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Ecosystem Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Ecosystem Co (TSE:9249) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,999.64, compared to a current price of 円1,645.00 — trading 17.7% below its estimated fair value. The current ROIC % is 9.87% and 610.1% above the Media - Diversified industry median of 1.39. Japan Ecosystem Co's overall GF Score™ is 77/100 with 10 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 Japan Ecosystem Co (TSE:9249), the current ROIC % is 9.87% 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 Japan Ecosystem Co (TSE:9249) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Ecosystem Co stock appears to be undervalued.
The current stock price of 円1,645.00 is trading 17.7% below its estimated GF Value™ of 円1,999.64.
GuruFocus considers Japan Ecosystem Co to be Modestly Undervalued.
Key valuation signals for TSE:9249:
ROIC %: 9.87%
GF Value™: 円1,999.64 vs. price of 円1,645.00 (17.7% below fair value)
Industry Position: 610.1% above the Media - Diversified median
No single metric tells the full story. See the TSE:9249 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Ecosystem Co Ltd is engaged in the Environmental Business, Public Service Business, Transportation Infrastructure Business, and other businesses. Under the Environmental Business the company enhances the efficiency of wastewater purification; Public service business includes designs, production, sale, installation and maintenance of totalizator system in public competition stadiums; the Transportation Infrastructure Business focuses on engineering of highway such as structure inspection, maintenance of telecommunication facilities and traffic control; and other business includes the system maintenance business, business related to the provision of ICT solutions utilizing AI technology, and real estate brokerage, sales, leasing, and other real estate related businesses.
77GF Score
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