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Nippon Paper Industries CoTSE:3863 -0.46%53 3-Year ROIIC % is 459.73 as of Mar. 2026, which is 4470% above its 10-year median of 10.06. GuruFocus rates TSE:3863 with a GF Score™ of 53/100 and a GF Value™ of 円1,147.84 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 268 Forest Products companies, Nippon Paper Industries Co ranks better than 98.13% 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 Paper Industries Co's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 459.73%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Nippon Paper Industries Co's 3-Year ROIIC % or its related term are showing as below:
TSE:3863's 3-Year ROIIC % is ranked better than 98.13% of 268
companies
in the Forest Products industry
Industry Median: -0.74
vs TSE:3863: 459.73
Nippon Paper Industries Co (TSE:3863) 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 Paper Industries Co 3-Year ROIIC % Related Terms
Nippon Paper Industries 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 Paper Industries Co 3-Year ROIIC % Competitor Comparison
For the Paper & Paper Products subindustry, Nippon Paper Industries 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 Paper Industries Co 3-Year ROIIC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Nippon Paper Industries Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Nippon Paper Industries Co's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 14221.7894 (Mar. 2026) - -26855 (Mar. 2023) )
/
( 1394921 (Mar. 2026) - 1385986 (Mar. 2023) )
=
41076.7894
/
8935
=
459.73%***
* 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 Paper Industries Co (TSE:3863) has a 3-Year ROIIC % of 459.73 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 Paper Industries Co and its competitors. This is 4470% above median its historical median of 10.06. According to the industry distribution chart, Nippon Paper Industries Co ranks #5 out of 268 companies in the Forest Products industry, placing it in the top 1.9%.
Is Nippon Paper Industries Co's 3-Year ROIIC % too high?
Nippon Paper Industries Co's current 3-Year ROIIC % of 459.73 is 4470% above median its 10-year median of 10.06. Based on the distribution chart, Nippon Paper Industries Co ranks #5 out of 268 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Paper Industries Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Paper Industries Co's 3-Year ROIIC % compare to competitors?
According to the Forest Products industry distribution chart, Nippon Paper Industries Co ranks #5 out of 268 companies for 3-Year ROIIC %. This places Nippon Paper Industries Co in the top 2% of its industry — outperforming the majority of peers. 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 Forest Products company?
A good 3-Year ROIIC % depends on the Forest Products industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Paper Industries Co and its competitors. Nippon Paper Industries Co's current 3-Year ROIIC % is 459.73, which is 4470% above median its own 10-year median of 10.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Paper Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Paper Industries Co (TSE:3863) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,147.84, compared to a current price of 円1,502.00 — trading 30.9% above its estimated fair value. The current 3-Year ROIIC % is 459.73, which is 4470% above median its 10-year median of 10.06. Nippon Paper Industries Co's overall GF Score™ is 53/100 with 8 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 Nippon Paper Industries Co (TSE:3863), the current 3-Year ROIIC % is 459.73 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 Paper Industries Co (TSE:3863) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Paper Industries Co stock appears to be overvalued.
The current stock price of 円1,502.00 is trading 30.9% above its estimated GF Value™ of 円1,147.84.
GuruFocus considers Nippon Paper Industries Co to be Significantly Overvalued.
Key valuation signals for TSE:3863:
3-Year ROIIC %: 459.73 (4470% above median its 10-year median of 10.06)
GF Value™: 円1,147.84 vs. price of 円1,502.00 (30.9% above fair value)
No single metric tells the full story. See the TSE:3863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Paper Industries Co Ltd produces and sells a variety of paper products. The company's paper products include newsprint, printing, sanitary, and packaging paper, as well as container board and boxes. The firm also sells construction materials, and generates electric power. Nippon Paper organizes itself into four segments based on product type: pulp and paper; paper related; wood products and construction related; and other. The pulp and paper segment generates the majority of revenue. The majority of sales are made in Japan.
53GF Score
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