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Kitano ConstructionTSE:1866 -1.23%66 3-Year ROIIC % is 10.41 as of Mar. 2026, which is 111% above its 10-year median of 4.93. GuruFocus rates TSE:1866 with a GF Score™ of 66/100 and a GF Value™ of 円877.46 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,686 Construction companies, Kitano Construction ranks better than 61.15% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Kitano Construction's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 10.41%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Kitano Construction's 3-Year ROIIC % or its related term are showing as below:
TSE:1866's 3-Year ROIIC % is ranked better than 61.15% of 1686
companies
in the Construction industry
Industry Median: 4.63
vs TSE:1866: 10.41
Kitano Construction (TSE:1866) 3-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.
Kitano Construction 3-Year ROIIC % Related Terms
Kitano Construction 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Kitano Construction's 3-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:1866 vs PWR, FIX, EME: 3-Year ROIIC % Comparison
For the Engineering & Construction subindustry, Kitano Construction's 3-Year ROIIC %, along with its competitors' market caps and 3-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.
Kitano Construction 3-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Kitano Construction's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Kitano Construction's 3-Year ROIIC % falls into.
Kitano Construction's 3-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 3341.9841 (Mar. 2026) - 2403.8065 (Mar. 2023) )
/
( 57017 (Mar. 2026) - 48005 (Mar. 2023) )
=
938.1776
/
9012
=
10.41%***
* 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 3-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.
Kitano Construction (TSE:1866) has a 3-Year ROIIC % of 10.41 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Kitano Construction and its competitors. This is 111% above median its historical median of 4.93. According to the industry distribution chart, Kitano Construction ranks #655 out of 1686 companies in the Construction industry, placing it in the top 38.8%.
Is Kitano Construction's 3-Year ROIIC % too high?
Kitano Construction's current 3-Year ROIIC % of 10.41 is 111% above median its 10-year median of 4.93. The Construction industry median 3-Year ROIIC % is 4.63. Kitano Construction's value of 10.41 is 124.8% above this industry median. Based on the distribution chart, Kitano Construction ranks #655 out of 1686 companies in the Construction industry, which is above the industry midpoint. Overall, Kitano Construction has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kitano Construction's 3-Year ROIIC % compare to PWR and FIX?
According to the Construction industry distribution chart, Kitano Construction ranks #655 out of 1686 companies for 3-Year ROIIC %. This puts Kitano Construction in the upper half of its industry. The industry median 3-Year ROIIC % is 4.63. Kitano Construction's value of 10.41 is 124.8% above this benchmark. While the company's 10-year median is 4.93 vs. the industry median of 4.63, Kitano Construction has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Construction company?
The median 3-Year ROIIC % among Construction companies is 4.63, based on 1,686 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kitano Construction's current 3-Year ROIIC % of 10.41 is 124.8% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Kitano Construction and its competitors. For the Construction industry, the median 3-Year ROIIC % is 4.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kitano Construction's current 3-Year ROIIC % is 10.41, which is 111% above median its own 10-year median of 4.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kitano Construction stock overvalued right now?
Based on GuruFocus' analysis, Kitano Construction (TSE:1866) is currently considered Modestly Overvalued. The stock's GF Value™ is 円877.46, compared to a current price of 円1,126.00 — trading 28.3% above its estimated fair value. The current 3-Year ROIIC % is 10.41, which is 111% above median its 10-year median of 4.93 and 124.8% above the Construction industry median of 4.63. Kitano Construction's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Kitano Construction (TSE:1866), the current 3-Year ROIIC % is 10.41 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 Kitano Construction (TSE:1866) Overvalued in 2026?
Based on GuruFocus' analysis, Kitano Construction stock appears to be overvalued.
The current stock price of 円1,126.00 is trading 28.3% above its estimated GF Value™ of 円877.46.
GuruFocus considers Kitano Construction to be Modestly Overvalued.
Key valuation signals for TSE:1866:
3-Year ROIIC %: 10.41 (111% above median its 10-year median of 4.93)
GF Value™: 円877.46 vs. price of 円1,126.00 (28.3% above fair value)
Industry Position: 124.8% above the Construction median (#655 of 1686)
No single metric tells the full story. See the TSE:1866 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kitano Construction Corp provides real estate services in Japan. Its business activities include planning, designing, construction management and consulting of construction work and development of urban, regional and resort projects.
66GF Score
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