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Union Tool CoTSE:6278 +0.72%79 3-Year ROIIC % is 10.52 as of Dec. 2025, which is 17% below its 10-year median of 12.75. GuruFocus rates TSE:6278 with a GF Score™ of 79/100 and a GF Value™ of 円7,325.00 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,925 Industrial Products companies, Union Tool Co ranks better than 62.91% 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.
Union Tool Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 10.52%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Union Tool Co's 3-Year ROIIC % or its related term are showing as below:
TSE:6278's 3-Year ROIIC % is ranked better than 62.91% of 2925
companies
in the Industrial Products industry
Industry Median: 3.47
vs TSE:6278: 10.52
Union Tool Co (TSE:6278) 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.
Union Tool Co 3-Year ROIIC % Related Terms
Union Tool Co 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Union Tool 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.
TSE:6278 vs SNA, RBC, SWK: 3-Year ROIIC % Comparison
For the Tools & Accessories subindustry, Union Tool 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.
Union Tool Co 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Union Tool Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Union Tool Co's 3-Year ROIIC % falls into.
Union Tool Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 6416.8256 (Dec. 2025) - 4205.486 (Dec. 2022) )
/
( 66436 (Dec. 2025) - 45418 (Dec. 2022) )
=
2211.3396
/
21018
=
10.52%***
* 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.
Union Tool Co (TSE:6278) has a 3-Year ROIIC % of 10.52 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Union Tool Co and its competitors. This is 17% below median its historical median of 12.75. Over the past decade, Union Tool Co's 3-Year ROIIC % has ranged from 4.20 to 218.65. According to the industry distribution chart, Union Tool Co ranks #1085 out of 2925 companies in the Industrial Products industry, placing it in the top 37.1%.
Is Union Tool Co's 3-Year ROIIC % too high?
Union Tool Co's current 3-Year ROIIC % of 10.52 is 17% below median its 10-year median of 12.75. Over the past 10 years, this metric has ranged from a low of 4.20 to a high of 218.65. The Industrial Products industry median 3-Year ROIIC % is 3.47. Union Tool Co's value of 10.52 is 203.2% above this industry median. Based on the distribution chart, Union Tool Co ranks #1085 out of 2925 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Union Tool Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Union Tool Co's 3-Year ROIIC % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Union Tool Co ranks #1085 out of 2925 companies for 3-Year ROIIC %. This puts Union Tool Co in the upper half of its industry. The industry median 3-Year ROIIC % is 3.47. Union Tool Co's value of 10.52 is 203.2% above this benchmark. Historically, Union Tool Co's own 3-Year ROIIC % has ranged from 4.20 to 218.65 over the past decade. While the company's 10-year median is 12.75 vs. the industry median of 3.47, Union Tool 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 an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.47, based on 2,925 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. Union Tool Co's current 3-Year ROIIC % of 10.52 is 203.2% 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 Union Tool Co 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. Union Tool Co's current 3-Year ROIIC % is 10.52, which is 17% below median its own 10-year median of 12.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union Tool Co stock overvalued right now?
Based on GuruFocus' analysis, Union Tool Co (TSE:6278) is currently considered Significantly Overvalued. The stock's GF Value™ is 円7,325.00, compared to a current price of 円16,700.00 — trading 128% above its estimated fair value. The current 3-Year ROIIC % is 10.52, which is 17% below median its 10-year median of 12.75 and 203.2% above the Industrial Products industry median of 3.47. Union Tool Co's overall GF Score™ is 79/100 with 2 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 Union Tool Co (TSE:6278), the current 3-Year ROIIC % is 10.52 as of Dec. 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 Union Tool Co (TSE:6278) Overvalued in 2026?
Based on GuruFocus' analysis, Union Tool Co stock appears to be overvalued.
The current stock price of 円16,700.00 is trading 128% above its estimated GF Value™ of 円7,325.00.
GuruFocus considers Union Tool Co to be Significantly Overvalued.
Key valuation signals for TSE:6278:
3-Year ROIIC %: 10.52 (17% below median its 10-year median of 12.75)
GF Value™: 円7,325.00 vs. price of 円16,700.00 (128% above fair value)
Industry Position: 203.2% above the Industrial Products median (#1085 of 2925)
No single metric tells the full story. See the TSE:6278 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Union Tool Co is a designer and manufacturer of industrial cutting tools to a broad sector of the global industry. The company's key product includes carbide drill used in the manufacture of Printed Circuit Boards, found in all modern electronics. It also manufactures precision machinery including linear motion guides, diesinking end-mills, and digital measuring equipment for industrial use. The company has operations in Japan, Asia, North America and Europe.
79GF Score
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