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Nippon Densetsu Kogyo CoTSE:1950 +1.60%82 3-Year ROIIC % is 14.63 as of Mar. 2026, which is 278% above its 10-year median of 3.87. GuruFocus rates TSE:1950 with a GF Score™ of 82/100 and a GF Value™ of 円2,737.33 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,686 Construction companies, Nippon Densetsu Kogyo Co ranks better than 67.2% 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.
Nippon Densetsu Kogyo Co's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 14.63%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Nippon Densetsu Kogyo Co's 3-Year ROIIC % or its related term are showing as below:
TSE:1950's 3-Year ROIIC % is ranked better than 67.2% of 1686
companies
in the Construction industry
Industry Median: 4.535
vs TSE:1950: 14.63
Nippon Densetsu Kogyo Co (TSE:1950) 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.
Nippon Densetsu Kogyo Co 3-Year ROIIC % Related Terms
Nippon Densetsu Kogyo Co 3-Year ROIIC % Historical Data
* 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.
Nippon Densetsu Kogyo Co 3-Year ROIIC % Competitor Comparison
For the Infrastructure Operations subindustry, Nippon Densetsu Kogyo Co'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.
Nippon Densetsu Kogyo Co 3-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Nippon Densetsu Kogyo Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Nippon Densetsu Kogyo Co's 3-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 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.
Nippon Densetsu Kogyo Co (TSE:1950) has a 3-Year ROIIC % of 14.63 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 Nippon Densetsu Kogyo Co and its competitors. This is 278% above median its historical median of 3.87. According to the industry distribution chart, Nippon Densetsu Kogyo Co ranks #553 out of 1686 companies in the Construction industry, placing it in the top 32.8%.
Is Nippon Densetsu Kogyo Co's 3-Year ROIIC % too high?
Nippon Densetsu Kogyo Co's current 3-Year ROIIC % of 14.63 is 278% above median its 10-year median of 3.87. The Construction industry median 3-Year ROIIC % is 4.54. Nippon Densetsu Kogyo Co's value of 14.63 is 222.6% above this industry median. Based on the distribution chart, Nippon Densetsu Kogyo Co ranks #553 out of 1686 companies in the Construction industry, which is above the industry midpoint. Overall, Nippon Densetsu Kogyo Co has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Densetsu Kogyo Co's 3-Year ROIIC % compare to competitors?
According to the Construction industry distribution chart, Nippon Densetsu Kogyo Co ranks #553 out of 1686 companies for 3-Year ROIIC %. This puts Nippon Densetsu Kogyo Co in the upper half of its industry. The industry median 3-Year ROIIC % is 4.54. Nippon Densetsu Kogyo Co's value of 14.63 is 222.6% above this benchmark. While the company's 10-year median is 3.87 vs. the industry median of 4.54, Nippon Densetsu Kogyo Co 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 4.54, 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. Nippon Densetsu Kogyo Co's current 3-Year ROIIC % of 14.63 is 222.6% 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 Nippon Densetsu Kogyo Co and its competitors. For the Construction industry, the median 3-Year ROIIC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Densetsu Kogyo Co's current 3-Year ROIIC % is 14.63, which is 278% above median its own 10-year median of 3.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Densetsu Kogyo Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Densetsu Kogyo Co (TSE:1950) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,737.33, compared to a current price of 円4,125.00 — trading 50.7% above its estimated fair value. The current 3-Year ROIIC % is 14.63, which is 278% above median its 10-year median of 3.87 and 222.6% above the Construction industry median of 4.54. Nippon Densetsu Kogyo Co's overall GF Score™ is 82/100 with 1 warning sign 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 Nippon Densetsu Kogyo Co (TSE:1950), the current 3-Year ROIIC % is 14.63 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 Densetsu Kogyo Co (TSE:1950) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Densetsu Kogyo Co stock appears to be overvalued.
The current stock price of 円4,125.00 is trading 50.7% above its estimated GF Value™ of 円2,737.33.
GuruFocus considers Nippon Densetsu Kogyo Co to be Significantly Overvalued.
Key valuation signals for TSE:1950:
3-Year ROIIC %: 14.63 (278% above median its 10-year median of 3.87)
GF Value™: 円2,737.33 vs. price of 円4,125.00 (50.7% above fair value)
Industry Position: 222.6% above the Construction median (#553 of 1686)
No single metric tells the full story. See the TSE:1950 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Densetsu Kogyo Co Ltd is mainly engaged in equipment works. It is involved in railroad electrical works, such as electric train line, power generation and transformation, power transmission line, electric lamp and signal works; general electrical works, such as building electrical facility, air conditioning facility, water supply, and drainage, and sanitary equipment works, as well as information and telecommunication facility works.
82GF Score
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