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Nippon Signal CoTSE:6741 -0.89%90 3-Year ROIIC % is 23.07 as of Mar. 2026, which is 1083% above its 10-year median of 1.95. GuruFocus rates TSE:6741 with a GF Score™ of 90/100 and a GF Value™ of 円1,297.93 (Modestly Overvalued). Among 2,933 Industrial Products companies, Nippon Signal Co ranks better than 76.37% 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 Signal Co's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 23.07%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Nippon Signal Co's 3-Year ROIIC % or its related term are showing as below:
TSE:6741's 3-Year ROIIC % is ranked better than 76.37% of 2933
companies
in the Industrial Products industry
Industry Median: 3.45
vs TSE:6741: 23.07
Nippon Signal Co (TSE:6741) 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 Signal Co 3-Year ROIIC % Related Terms
Nippon Signal Co 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Nippon Signal 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 Electrical Equipment & Parts subindustry, Nippon Signal 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 Signal Co 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nippon Signal Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Nippon Signal Co's 3-Year ROIIC % falls into.
Nippon Signal Co'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**
=
( 8237.0378 (Mar. 2026) - 3457.2456 (Mar. 2023) )
/
( 145754 (Mar. 2026) - 125036 (Mar. 2023) )
=
4779.7922
/
20718
=
23.07%***
* 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 Signal Co (TSE:6741) has a 3-Year ROIIC % of 23.07 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 Signal Co and its competitors. This is 1083% above median its historical median of 1.95. According to the industry distribution chart, Nippon Signal Co ranks #693 out of 2933 companies in the Industrial Products industry, placing it in the top 23.6%.
Is Nippon Signal Co's 3-Year ROIIC % too high?
Nippon Signal Co's current 3-Year ROIIC % of 23.07 is 1083% above median its 10-year median of 1.95. The Industrial Products industry median 3-Year ROIIC % is 3.45. Nippon Signal Co's value of 23.07 is 568.7% above this industry median. Based on the distribution chart, Nippon Signal Co ranks #693 out of 2933 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Signal Co has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Signal Co's 3-Year ROIIC % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Nippon Signal Co ranks #693 out of 2933 companies for 3-Year ROIIC %. This places Nippon Signal Co in the top 24% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.45. Nippon Signal Co's value of 23.07 is 568.7% above this benchmark. While the company's 10-year median is 1.95 vs. the industry median of 3.45, Nippon Signal 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 3.45, 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. Nippon Signal Co's current 3-Year ROIIC % of 23.07 is 568.7% 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 Nippon Signal Co and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Signal Co's current 3-Year ROIIC % is 23.07, which is 1083% above median its own 10-year median of 1.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Signal Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Signal Co (TSE:6741) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,297.93, compared to a current price of 円1,567.00 — trading 20.7% above its estimated fair value. The current 3-Year ROIIC % is 23.07, which is 1083% above median its 10-year median of 1.95 and 568.7% above the Industrial Products industry median of 3.45. Nippon Signal Co's overall GF Score™ is 90/100. 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 Signal Co (TSE:6741), the current 3-Year ROIIC % is 23.07 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 Signal Co (TSE:6741) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Signal Co stock appears to be overvalued.
The current stock price of 円1,567.00 is trading 20.7% above its estimated GF Value™ of 円1,297.93.
GuruFocus considers Nippon Signal Co to be Modestly Overvalued.
Key valuation signals for TSE:6741:
3-Year ROIIC %: 23.07 (1083% above median its 10-year median of 1.95)
GF Value™: 円1,297.93 vs. price of 円1,567.00 (20.7% above fair value)
Industry Position: 568.7% above the Industrial Products median (#693 of 2933)
No single metric tells the full story. See the TSE:6741 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Signal Co Ltd is a Japanese technology company. Its products and services fall into the following categories: railway signal systems, traffic information systems, automatic fare collection, or AFR, systems, and parking information systems. The railway signal systems division provides automatic train supervision systems, relay interlocking equipment, level-crossing systems, and LED information boards. The traffic information systems division offers universal traffic management systems, local controllers, and LED traffic signal lights. The AFR system division offers comprehensive network systems to automate station operations. The parking information systems division offers car parking systems and bicycle lock systems.
90GF Score
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