Rhythm Co (TSE:7769) 3-Year ROIIC % : 16.15% (As of Mar. 2026) — 186% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:7769 Rhythm Co Ltd TSE:7769
75 GF Score
Price 円3,870.00
GF Value 円3,886.89
Valuation Fairly Valued
! 6 Warning Signs
View Full Analysis

What is Rhythm Co 3-Year ROIIC %?

Rhythm Co TSE:7769 +0.39% 75 3-Year ROIIC % is 16.15 as of Mar. 2026, which is 186% above its 10-year median of 5.64. GuruFocus rates TSE:7769 with a GF Score™ of 75/100 and a GF Value™ of 円3,886.89 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,060 Retail - Cyclical companies, Rhythm Co ranks better than 67.83% 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. Rhythm Co's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 16.15%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Rhythm Co's 3-Year ROIIC % or its related term are showing as below:

TSE:7769's 3-Year ROIIC % is ranked better than
67.83% of 1060 companies
in the Retail - Cyclical industry
Industry Median: 4.54 vs TSE:7769: 16.15

Rhythm Co  (TSE:7769) 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.


Rhythm Co 3-Year ROIIC % Related Terms


Rhythm Co 3-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Rhythm 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.

Rhythm Co 3-Year ROIIC % Chart

Rhythm Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 41.75 2.05 -7.97 16.15

Rhythm Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
3-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.05 0.00 -7.97 0.00 16.15

TSE:7769 vs TPR: 3-Year ROIIC % Comparison

For the Luxury Goods subindustry, Rhythm 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.


Rhythm Co 3-Year ROIIC % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rhythm Co's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Rhythm Co's 3-Year ROIIC % falls into.


TSE:7769
75GF Score
Rhythm Co Ltd TSE:7769
3-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rhythm Co 3-Year ROIIC % Calculation

Rhythm 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**
=( 1476.5448 (Mar. 2026) - 606.2645 (Mar. 2023) )/( 31262 (Mar. 2026) - 25873 (Mar. 2023) )
=870.2803/5389
=16.15%***

* 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.

Frequently Asked Questions Learn more about 3-Year ROIIC % →
What does a 3-Year ROIIC % of 16.15 mean?
Rhythm Co (TSE:7769) has a 3-Year ROIIC % of 16.15 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 Rhythm Co and its competitors. This is 186% above median its historical median of 5.64. According to the industry distribution chart, Rhythm Co ranks #341 out of 1060 companies in the Retail - Cyclical industry, placing it in the top 32.2%.
Is Rhythm Co's 3-Year ROIIC % too high?
Rhythm Co's current 3-Year ROIIC % of 16.15 is 186% above median its 10-year median of 5.64. The Retail - Cyclical industry median 3-Year ROIIC % is 4.54. Rhythm Co's value of 16.15 is 255.7% above this industry median. Based on the distribution chart, Rhythm Co ranks #341 out of 1060 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Rhythm Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhythm Co's 3-Year ROIIC % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Rhythm Co ranks #341 out of 1060 companies for 3-Year ROIIC %. This puts Rhythm Co in the upper half of its industry. The industry median 3-Year ROIIC % is 4.54. Rhythm Co's value of 16.15 is 255.7% above this benchmark. While the company's 10-year median is 5.64 vs. the industry median of 4.54, Rhythm 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 Retail - Cyclical company?
The median 3-Year ROIIC % among Retail - Cyclical companies is 4.54, based on 1,060 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. Rhythm Co's current 3-Year ROIIC % of 16.15 is 255.7% 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 Rhythm Co and its competitors. For the Retail - Cyclical industry, the median 3-Year ROIIC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhythm Co's current 3-Year ROIIC % is 16.15, which is 186% above median its own 10-year median of 5.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhythm Co stock overvalued right now?
Based on GuruFocus' analysis, Rhythm Co (TSE:7769) is currently considered Fairly Valued. The stock's GF Value™ is 円3,886.89, compared to a current price of 円3,870.00 — trading 0.4% below its estimated fair value. The current 3-Year ROIIC % is 16.15, which is 186% above median its 10-year median of 5.64 and 255.7% above the Retail - Cyclical industry median of 4.54. Rhythm Co's overall GF Score™ is 75/100 with 6 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 Rhythm Co (TSE:7769), the current 3-Year ROIIC % is 16.15 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 Rhythm Co (TSE:7769) Overvalued in 2026?

Based on GuruFocus' analysis, Rhythm Co stock appears to be undervalued. The current stock price of 円3,870.00 is trading 0.4% below its estimated GF Value™ of 円3,886.89. GuruFocus considers Rhythm Co to be Fairly Valued.

Key valuation signals for TSE:7769:

  • 3-Year ROIIC %: 16.15 (186% above median its 10-year median of 5.64)
  • GF Value™: 円3,886.89 vs. price of 円3,870.00 (0.4% below fair value)
  • GF Score™: 75/100 with 6 warning signs
  • Industry Position: 255.7% above the Retail - Cyclical median (#341 of 1060)

No single metric tells the full story. See the TSE:7769 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rhythm Co Business Description

Address 1-299-12 Kitabukuro-cho Omiya-ku, Saitama-shi, Saitama, JPN, 330-9551
Rhythm Co Ltd is a watch manufacturer. The company is mainly engaged in the manufacturing and sale of clocks, jewelry, watches, electronic parts and equipment. It operates its business in two divisions including Precision Parts and Household Goods Business. The Precision Parts Business manufactures and sells precision parts used in automobiles, industrial equipment, optical equipment, office/communication equipment, solar power generation, home appliances, difficult precision molds, electronic equipment, information, automotive-related equipment and other decorative products. The Household Goods Business manufactures and sells clocks such as wall clocks, table clocks, alarm clocks, digital clocks and equipment clocks, clock movements, disaster prevention administrative radios and others.
75GF Score

Get the complete analysis for TSE:7769

3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円3,870.00
Price
円3,886.89
GF Value