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 Kyoto Hotel's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.40%.
As of today (2026-07-09), The Kyoto Hotel's WACC % is 1.88%. The Kyoto Hotel's ROIC % is 8.00% (calculated using TTM income statement data).
The Kyoto Hotel 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.
The Kyoto Hotel (TSE:9723) 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, The Kyoto Hotel's WACC % is 1.88%. The Kyoto Hotel's ROIC % is 8.00% (calculated using TTM income statement data).
The Kyoto Hotel 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.
The Kyoto Hotel ROIC % Related Terms
The Kyoto Hotel ROIC % Historical Data
* Premium members only.
The historical data trend for The Kyoto Hotel'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 Lodging subindustry, The Kyoto Hotel'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.
The Kyoto Hotel ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Kyoto Hotel's ROIC % distribution charts can be found below:
* The bar in red indicates where The Kyoto Hotel'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.
The Kyoto Hotel (TSE:9723) has a ROIC % of 11.40% 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 The Kyoto Hotel and its competitors.
Is The Kyoto Hotel's ROIC % too high?
The Kyoto Hotel's current ROIC % is 11.40%. The Travel & Leisure industry median ROIC % is 3.77. The Kyoto Hotel's value of 11.40% is 202.8% above this industry median. Overall, The Kyoto Hotel has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Kyoto Hotel's ROIC % compare to MAR and HLT?
The Kyoto Hotel's ROIC % of 11.40% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.77. The Kyoto Hotel's value of 11.40% is 202.8% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.77, based on 830 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. The Kyoto Hotel's current ROIC % of 11.40% is 202.8% 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 The Kyoto Hotel and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kyoto Hotel's current ROIC % is 11.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kyoto Hotel stock overvalued right now?
Based on GuruFocus' analysis, The Kyoto Hotel (TSE:9723) is currently considered Modestly Undervalued. The stock's GF Value™ is 円746.90, compared to a current price of 円632.00 — trading 15.4% below its estimated fair value. The current ROIC % is 11.40% and 202.8% above the Travel & Leisure industry median of 3.77. The Kyoto Hotel's overall GF Score™ is 70/100 with 4 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 The Kyoto Hotel (TSE:9723), the current ROIC % is 11.40% 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 The Kyoto Hotel (TSE:9723) Overvalued in 2026?
Based on GuruFocus' analysis, The Kyoto Hotel stock appears to be undervalued.
The current stock price of 円632.00 is trading 15.4% below its estimated GF Value™ of 円746.90.
GuruFocus considers The Kyoto Hotel to be Modestly Undervalued.
Key valuation signals for TSE:9723:
ROIC %: 11.40%
GF Value™: 円746.90 vs. price of 円632.00 (15.4% below fair value)
Industry Position: 202.8% above the Travel & Leisure median
No single metric tells the full story. See the TSE:9723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Kyoto Hotel Ltd operates hotels & banquet halls in Japan. The Company manages restaurants & bars under the names of Kyoto Hotel Okura and Karasuma Kyoto Hotel. It operates in four divisions: accommodation, banquet, restaurant & others division. It also has the online shop.
70GF Score
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