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Japan EngineTSE:6016 -3.10%74 3-Year ROIIC % is 38.78 as of Mar. 2026, which is 279% above its 10-year median of 10.22. GuruFocus rates TSE:6016 with a GF Score™ of 74/100 and a GF Value™ of 円5,780.37 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,933 Industrial Products companies, Japan Engine ranks better than 83.77% 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.
Japan Engine's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 38.78%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Japan Engine's 3-Year ROIIC % or its related term are showing as below:
TSE:6016's 3-Year ROIIC % is ranked better than 83.77% of 2933
companies
in the Industrial Products industry
Industry Median: 3.47
vs TSE:6016: 38.78
Japan Engine (TSE:6016) 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.
Japan Engine 3-Year ROIIC % Related Terms
Japan Engine 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Japan Engine'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:6016 vs GEV, ETN, PH: 3-Year ROIIC % Comparison
For the Specialty Industrial Machinery subindustry, Japan Engine'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.
Japan Engine 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Japan Engine's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Japan Engine's 3-Year ROIIC % falls into.
Japan Engine'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**
=
( 4045.6949248 (Mar. 2026) - 442.08 (Mar. 2023) )
/
( 22970.886 (Mar. 2026) - 13678.067 (Mar. 2023) )
=
3603.6149248
/
9292.819
=
38.78%***
* 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.
Japan Engine (TSE:6016) has a 3-Year ROIIC % of 38.78 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 Japan Engine and its competitors. This is 279% above median its historical median of 10.22. According to the industry distribution chart, Japan Engine ranks #476 out of 2933 companies in the Industrial Products industry, placing it in the top 16.2%.
Is Japan Engine's 3-Year ROIIC % too high?
Japan Engine's current 3-Year ROIIC % of 38.78 is 279% above median its 10-year median of 10.22. The Industrial Products industry median 3-Year ROIIC % is 3.47. Japan Engine's value of 38.78 is 1017.6% above this industry median. Based on the distribution chart, Japan Engine ranks #476 out of 2933 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Engine has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Engine's 3-Year ROIIC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Japan Engine ranks #476 out of 2933 companies for 3-Year ROIIC %. This places Japan Engine in the top 16% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.47. Japan Engine's value of 38.78 is 1017.6% above this benchmark. While the company's 10-year median is 10.22 vs. the industry median of 3.47, Japan Engine 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 an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.47, based on 2,933 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. Japan Engine's current 3-Year ROIIC % of 38.78 is 1017.6% 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 Japan Engine and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Engine's current 3-Year ROIIC % is 38.78, which is 279% above median its own 10-year median of 10.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Engine stock overvalued right now?
Based on GuruFocus' analysis, Japan Engine (TSE:6016) is currently considered Significantly Overvalued. The stock's GF Value™ is 円5,780.37, compared to a current price of 円9,390.00 — trading 62.4% above its estimated fair value. The current 3-Year ROIIC % is 38.78, which is 279% above median its 10-year median of 10.22 and 1017.6% above the Industrial Products industry median of 3.47. Japan Engine's overall GF Score™ is 74/100 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 Japan Engine (TSE:6016), the current 3-Year ROIIC % is 38.78 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 Japan Engine (TSE:6016) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Engine stock appears to be overvalued.
The current stock price of 円9,390.00 is trading 62.4% above its estimated GF Value™ of 円5,780.37.
GuruFocus considers Japan Engine to be Significantly Overvalued.
Key valuation signals for TSE:6016:
3-Year ROIIC %: 38.78 (279% above median its 10-year median of 10.22)
GF Value™: 円5,780.37 vs. price of 円9,390.00 (62.4% above fair value)
Industry Position: 1017.6% above the Industrial Products median (#476 of 2933)
No single metric tells the full story. See the TSE:6016 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Engine Corp is a Japanese company engaged in the production and sale of various types of UE diesel engines. It also manufactures machinery and equipment related to marine, factory automation and energy saving. The organization has a business presence in Japan and other countries.
74GF Score
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