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10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Nippon Rietec Co's 10-Year ROIIC % for the quarter that ended in Mar. 2026 was 6.36%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Nippon Rietec Co's 10-Year ROIIC % or its related term are showing as below:
TSE:1938's 10-Year ROIIC % is ranked better than 60.01% of 1483
companies
in the Construction industry
Industry Median: 3.36
vs TSE:1938: 6.36
Nippon Rietec Co (TSE:1938) 10-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Nippon Rietec Co 10-Year ROIIC % Related Terms
Nippon Rietec Co 10-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Nippon Rietec Co's 10-Year ROIIC % 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.
TSE:1938 vs PWR, FIX, EME: 10-Year ROIIC % Comparison
For the Engineering & Construction subindustry, Nippon Rietec Co's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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.
Nippon Rietec Co 10-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Nippon Rietec Co's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Nippon Rietec Co's 10-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Nippon Rietec Co (TSE:1938) has a 10-Year ROIIC % of 6.36 as of Mar. 2026. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Nippon Rietec Co and its competitors. According to the industry distribution chart, Nippon Rietec Co ranks #593 out of 1483 companies in the Construction industry, placing it in the top 40%.
Is Nippon Rietec Co's 10-Year ROIIC % too high?
Nippon Rietec Co's current 10-Year ROIIC % is 6.36. The Construction industry median 10-Year ROIIC % is 3.36. Nippon Rietec Co's value of 6.36 is 89.3% above this industry median. Based on the distribution chart, Nippon Rietec Co ranks #593 out of 1483 companies in the Construction industry, which is above the industry midpoint. Overall, Nippon Rietec Co has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Rietec Co's 10-Year ROIIC % compare to PWR and FIX?
According to the Construction industry distribution chart, Nippon Rietec Co ranks #593 out of 1483 companies for 10-Year ROIIC %. This puts Nippon Rietec Co in the upper half of its industry. The industry median 10-Year ROIIC % is 3.36. Nippon Rietec Co's value of 6.36 is 89.3% 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 10-Year ROIIC % for a Construction company?
The median 10-Year ROIIC % among Construction companies is 3.36, based on 1,483 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Rietec Co's current 10-Year ROIIC % of 6.36 is 89.3% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Nippon Rietec Co and its competitors. For the Construction industry, the median 10-Year ROIIC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Rietec Co's current 10-Year ROIIC % is 6.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Rietec Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Rietec Co (TSE:1938) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,861.59, compared to a current price of 円2,436.00 — trading 30.9% above its estimated fair value. The current 10-Year ROIIC % is 6.36 and 89.3% above the Construction industry median of 3.36. Nippon Rietec Co's overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Nippon Rietec Co (TSE:1938), the current 10-Year ROIIC % is 6.36 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 Nippon Rietec Co (TSE:1938) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Rietec Co stock appears to be overvalued.
The current stock price of 円2,436.00 is trading 30.9% above its estimated GF Value™ of 円1,861.59.
GuruFocus considers Nippon Rietec Co to be Significantly Overvalued.
Key valuation signals for TSE:1938:
10-Year ROIIC %: 6.36
GF Value™: 円1,861.59 vs. price of 円2,436.00 (30.9% above fair value)
Industry Position: 89.3% above the Construction median (#593 of 1483)
No single metric tells the full story. See the TSE:1938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Rietec Co Ltd manufactures and sales electrical equipment for various divisions. The company operates in four business divisions including Railway electrical equipment construction, Road equipment, Indoor and outdoor electrical equipment construction and Transmission line construction. Its product offering includes signal equipment, train line equipment, power generation equipment, electric power equipment, distribution line equipment, telecommunication equipment, road information control system, road signs, sound insulation walls, road lighting equipment, aircraft lighting equipment, disaster prevention equipment construction, sanitation equipment construction, machinery equipment facility construction, civil engineering work, and waterproofing construction.
74GF Score
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