Tea Life Co (TSE:3172) 3-Year ROIIC % : 484.77% (As of Jul. 2025) — 4232% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:3172 Tea Life Co Ltd TSE:3172
61 GF Score
Price 円1,153.00
GF Value 円778.08
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Tea Life Co 3-Year ROIIC %?

Tea Life Co TSE:3172 +0.09% 61 3-Year ROIIC % is 484.77 as of Jul. 2025, which is 4232% above its 10-year median of 11.19. GuruFocus rates TSE:3172 with a GF Score™ of 61/100 and a GF Value™ of 円778.08 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,061 Retail - Cyclical companies, Tea Life Co ranks better than 97.74% 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. Tea Life Co's 3-Year ROIIC % for the quarter that ended in Jul. 2025 was 484.77%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Tea Life Co's 3-Year ROIIC % or its related term are showing as below:

TSE:3172's 3-Year ROIIC % is ranked better than
97.74% of 1061 companies
in the Retail - Cyclical industry
Industry Median: 4.3 vs TSE:3172: 484.77

Tea Life Co  (TSE:3172) 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.


Tea Life Co 3-Year ROIIC % Related Terms


Tea Life Co 3-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Tea Life Co'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.

Tea Life Co 3-Year ROIIC % Chart

Tea Life Co Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.35 31.59 69.50 -50.64 484.77

Tea Life Co Quarterly Data
Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
3-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 484.77 0.00 0.00 0.00

TSE:3172 vs AMZN, BABA, PDD: 3-Year ROIIC % Comparison

For the Internet Retail subindustry, Tea Life 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.


Tea Life Co 3-Year ROIIC % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Tea Life Co's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Tea Life Co's 3-Year ROIIC % falls into.


TSE:3172
61GF Score
Tea Life Co Ltd TSE:3172
3-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tea Life Co 3-Year ROIIC % Calculation

Tea Life Co's 3-Year ROIIC % for the quarter that ended in Jul. 2025 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 332.2242 (Jul. 2025) - 564.916 (Jul. 2022) )/( 4914 (Jul. 2025) - 4962 (Jul. 2022) )
=-232.6918/-48
=484.77%***

* 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.

Frequently Asked Questions Learn more about 3-Year ROIIC % →
What does a 3-Year ROIIC % of 484.77 mean?
Tea Life Co (TSE:3172) has a 3-Year ROIIC % of 484.77 as of Jul. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Tea Life Co and its competitors. This is 4232% above median its historical median of 11.19. According to the industry distribution chart, Tea Life Co ranks #24 out of 1061 companies in the Retail - Cyclical industry, placing it in the top 2.3%.
Is Tea Life Co's 3-Year ROIIC % too high?
Tea Life Co's current 3-Year ROIIC % of 484.77 is 4232% above median its 10-year median of 11.19. The Retail - Cyclical industry median 3-Year ROIIC % is 4.30. Tea Life Co's value of 484.77 is 11173.7% above this industry median. Based on the distribution chart, Tea Life Co ranks #24 out of 1061 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Tea Life Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tea Life Co's 3-Year ROIIC % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Tea Life Co ranks #24 out of 1061 companies for 3-Year ROIIC %. This places Tea Life Co in the top 2% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 4.30. Tea Life Co's value of 484.77 is 11173.7% above this benchmark. While the company's 10-year median is 11.19 vs. the industry median of 4.30, Tea Life 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 Retail - Cyclical company?
The median 3-Year ROIIC % among Retail - Cyclical companies is 4.30, based on 1,061 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. Tea Life Co's current 3-Year ROIIC % of 484.77 is 11173.7% 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 Tea Life Co and its competitors. For the Retail - Cyclical industry, the median 3-Year ROIIC % is 4.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tea Life Co's current 3-Year ROIIC % is 484.77, which is 4232% above median its own 10-year median of 11.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tea Life Co stock overvalued right now?
Based on GuruFocus' analysis, Tea Life Co (TSE:3172) is currently considered Significantly Overvalued. The stock's GF Value™ is 円778.08, compared to a current price of 円1,153.00 — trading 48.2% above its estimated fair value. The current 3-Year ROIIC % is 484.77, which is 4232% above median its 10-year median of 11.19 and 11173.7% above the Retail - Cyclical industry median of 4.30. Tea Life Co's overall GF Score™ is 61/100 with 3 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 Tea Life Co (TSE:3172), the current 3-Year ROIIC % is 484.77 as of Jul. 2025. 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 Tea Life Co (TSE:3172) Overvalued in 2026?

Based on GuruFocus' analysis, Tea Life Co stock appears to be overvalued. The current stock price of 円1,153.00 is trading 48.2% above its estimated GF Value™ of 円778.08. GuruFocus considers Tea Life Co to be Significantly Overvalued.

Key valuation signals for TSE:3172:

  • 3-Year ROIIC %: 484.77 (4232% above median its 10-year median of 11.19)
  • GF Value™: 円778.08 vs. price of 円1,153.00 (48.2% above fair value)
  • GF Score™: 61/100 with 3 warning signs
  • Industry Position: 11173.7% above the Retail - Cyclical median (#24 of 1061)

No single metric tells the full story. See the TSE:3172 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tea Life Co Business Description

Address 118 Ushio, Shizuoka Prefecture, Shimada, JPN, 428-8651
Tea Life Co Ltd is a Japan-based company involved in retail operations, wholesale distribution to mail-order companies and retail stores, as well as real estate leasing. The company operates through three reportable segments: the Wholesale Business, which supplies daily essentials and communication-related products to corporate clients; the Retail Business, which sells health foods, cosmetics, baby goods, and children's furniture directly to consumers through e-commerce channels; and the Property Management Business, which manages the leasing of company-owned properties and handles logistics-related real estate services. It generates the majority of its revenue from the Wholesale segment.
61GF Score

Get the complete analysis for TSE:3172

3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,153.00
Price
円778.08
GF Value