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5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Shima Seiki Mfg's 5-Year ROIIC % for the quarter that ended in Mar. 2026 was 168.37%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Shima Seiki Mfg's 5-Year ROIIC % or its related term are showing as below:
FRA:2ME's 5-Year ROIIC % is ranked better than 97.38% of 2782
companies
in the Industrial Products industry
Industry Median: 4.525
vs FRA:2ME: 168.37
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.
Shima Seiki Mfg 5-Year ROIIC % Related Terms
Shima Seiki Mfg 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Shima Seiki Mfg's 5-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.
FRA:2ME vs GEV, ETN, PH: 5-Year ROIIC % Comparison
For the Specialty Industrial Machinery subindustry, Shima Seiki Mfg's 5-Year ROIIC %, along with its competitors' market caps and 5-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.
Shima Seiki Mfg 5-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shima Seiki Mfg's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Shima Seiki Mfg's 5-Year ROIIC % falls into.
Shima Seiki Mfg's 5-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( -7.261712 (Mar. 2026) - -70.655 (Mar. 2021) )
/
( 471.992 (Mar. 2026) - 633.266 (Mar. 2021) )
=
63.393288
/
-161.274
=
-39.31%***
* 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 5-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.
Shima Seiki Mfg (FRA:2ME) has a 5-Year ROIIC % of 168.37 as of Mar. 2026. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Shima Seiki Mfg and its competitors. According to the industry distribution chart, Shima Seiki Mfg ranks #73 out of 2782 companies in the Industrial Products industry, placing it in the top 2.6%.
Is Shima Seiki Mfg's 5-Year ROIIC % too high?
Shima Seiki Mfg's current 5-Year ROIIC % is 168.37. The Industrial Products industry median 5-Year ROIIC % is 4.53. Shima Seiki Mfg's value of 168.37 is 3620.9% above this industry median. Based on the distribution chart, Shima Seiki Mfg ranks #73 out of 2782 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Shima Seiki Mfg has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Shima Seiki Mfg's 5-Year ROIIC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shima Seiki Mfg ranks #73 out of 2782 companies for 5-Year ROIIC %. This places Shima Seiki Mfg in the top 3% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 4.53. Shima Seiki Mfg's value of 168.37 is 3620.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Industrial Products company?
The median 5-Year ROIIC % among Industrial Products companies is 4.53, based on 2,782 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shima Seiki Mfg's current 5-Year ROIIC % of 168.37 is 3620.9% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Shima Seiki Mfg and its competitors. For the Industrial Products industry, the median 5-Year ROIIC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shima Seiki Mfg's current 5-Year ROIIC % is 168.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shima Seiki Mfg stock overvalued right now?
Shima Seiki Mfg (FRA:2ME) has a current 5-Year ROIIC % of 168.37. The stock's GF Value™ is €6.45, compared to a current price of €4.75 — trading 26.3% below its estimated fair value. The current 5-Year ROIIC % is 168.37 and 3620.9% above the Industrial Products industry median of 4.53. Shima Seiki Mfg's overall GF Score™ is 67/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Shima Seiki Mfg (FRA:2ME), the current 5-Year ROIIC % is 168.37 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 Shima Seiki Mfg (FRA:2ME) Overvalued in 2026?
Based on GuruFocus' analysis, Shima Seiki Mfg stock appears to be undervalued.
The current stock price of €4.75 is trading 26.3% below its estimated GF Value™ of €6.45.
Key valuation signals for FRA:2ME:
5-Year ROIIC %: 168.37
GF Value™: €6.45 vs. price of €4.75 (26.3% below fair value)
Industry Position: 3620.9% above the Industrial Products median (#73 of 2782)
No single metric tells the full story. See the FRA:2ME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shima Seiki Mfg Ltd is a Japan-based company that is engaged in developing, manufacturing, selling, and servicing computerized flat knitting machines, design systems, automatic fabric-cutting machines, and glove- and sock-knitting machines. The company's products are applied in apparel, knitting, weaving, printing, circular knitting, interior furnishings, automotive, aerospace, and other industrial materials. Flat knitting machines account for the majority of the company's sales. Shima Seiki generates most of its sales from Asia and Europe.
67GF Score
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