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Nippon Shinyaku CoTSE:4516 +1.45%92 3-Year ROIIC % is 6.78 as of Mar. 2026, which is 79% below its 10-year median of 32.51. GuruFocus rates TSE:4516 with a GF Score™ of 92/100 and a GF Value™ of 円4,830.55 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 947 Drug Manufacturers companies, Nippon Shinyaku Co ranks better than 55.33% 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 Shinyaku Co's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 6.78%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Nippon Shinyaku Co's 3-Year ROIIC % or its related term are showing as below:
TSE:4516's 3-Year ROIIC % is ranked better than 55.33% of 947
companies
in the Drug Manufacturers industry
Industry Median: 3.7
vs TSE:4516: 6.78
Nippon Shinyaku Co (TSE:4516) 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 Shinyaku Co 3-Year ROIIC % Related Terms
Nippon Shinyaku Co 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Nippon Shinyaku 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Nippon Shinyaku 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 Shinyaku Co 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Nippon Shinyaku Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Nippon Shinyaku 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 Shinyaku Co (TSE:4516) has a 3-Year ROIIC % of 6.78 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 Shinyaku Co and its competitors. This is 79% below median its historical median of 32.51. Over the past decade, Nippon Shinyaku Co's 3-Year ROIIC % has ranged from 6.78 to 172.86. According to the industry distribution chart, Nippon Shinyaku Co ranks #423 out of 947 companies in the Drug Manufacturers industry, placing it in the top 44.7%.
Is Nippon Shinyaku Co's 3-Year ROIIC % too high?
Nippon Shinyaku Co's current 3-Year ROIIC % of 6.78 is 79% below median its 10-year median of 32.51. Over the past 10 years, this metric has ranged from a low of 6.78 to a high of 172.86. The Drug Manufacturers industry median 3-Year ROIIC % is 3.70. Nippon Shinyaku Co's value of 6.78 is 83.2% above this industry median. Based on the distribution chart, Nippon Shinyaku Co ranks #423 out of 947 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Nippon Shinyaku Co has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shinyaku Co's 3-Year ROIIC % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Nippon Shinyaku Co ranks #423 out of 947 companies for 3-Year ROIIC %. This puts Nippon Shinyaku Co in the upper half of its industry. The industry median 3-Year ROIIC % is 3.70. Nippon Shinyaku Co's value of 6.78 is 83.2% above this benchmark. Historically, Nippon Shinyaku Co's own 3-Year ROIIC % has ranged from 6.78 to 172.86 over the past decade. While the company's 10-year median is 32.51 vs. the industry median of 3.70, Nippon Shinyaku 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 Drug Manufacturers company?
The median 3-Year ROIIC % among Drug Manufacturers companies is 3.70, based on 947 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 Shinyaku Co's current 3-Year ROIIC % of 6.78 is 83.2% 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 Shinyaku Co and its competitors. For the Drug Manufacturers industry, the median 3-Year ROIIC % is 3.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Shinyaku Co's current 3-Year ROIIC % is 6.78, which is 79% below median its own 10-year median of 32.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shinyaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shinyaku Co (TSE:4516) is currently considered Modestly Undervalued. The stock's GF Value™ is 円4,830.55, compared to a current price of 円4,048.00 — trading 16.2% below its estimated fair value. The current 3-Year ROIIC % is 6.78, which is 79% below median its 10-year median of 32.51 and 83.2% above the Drug Manufacturers industry median of 3.70. Nippon Shinyaku Co's overall GF Score™ is 92/100 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 Nippon Shinyaku Co (TSE:4516), the current 3-Year ROIIC % is 6.78 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 Shinyaku Co (TSE:4516) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shinyaku Co stock appears to be undervalued.
The current stock price of 円4,048.00 is trading 16.2% below its estimated GF Value™ of 円4,830.55.
GuruFocus considers Nippon Shinyaku Co to be Modestly Undervalued.
Key valuation signals for TSE:4516:
3-Year ROIIC %: 6.78 (79% below median its 10-year median of 32.51)
GF Value™: 円4,830.55 vs. price of 円4,048.00 (16.2% below fair value)
Industry Position: 83.2% above the Drug Manufacturers median (#423 of 947)
No single metric tells the full story. See the TSE:4516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shinyaku Co Ltd is engaged in the pharmaceuticals and functional food businesses. The Pharmaceuticals Business develops and sells treatments for urological disorders, blood cancer, rare and intractable diseases, and gynecological conditions. The Functional Food Business produces and sells health food ingredients, quality-stabilizing preservatives, protein preparations, and supplements. It generates the majority of its revenue from the Pharmaceuticals segment.
92GF Score
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