Japan TobaccoJAPAF 75 5-Year ROIIC % is 10.11 as of Dec. 2025. GuruFocus rates JAPAF with a GF Score™ of 75/100 and a GF Value™ of $33.13 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 43 Tobacco Products companies, Japan Tobacco ranks better than 53.49% on this metric.
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.
Japan Tobacco's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 10.11%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Japan Tobacco's 5-Year ROIIC % or its related term are showing as below:
JAPAF's 5-Year ROIIC % is ranked better than 53.49% of 43
companies
in the Tobacco Products industry
Industry Median: 1.2
vs JAPAF: 10.11
Japan Tobacco (OTCPK:JAPAF) 5-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 Tobacco 5-Year ROIIC % Related Terms
Japan Tobacco 5-Year ROIIC % Historical Data
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The historical data trend for Japan Tobacco'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.
For the Tobacco subindustry, Japan Tobacco'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.
Japan Tobacco 5-Year ROIIC % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Japan Tobacco's 5-Year ROIIC % falls into.
* 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.
Japan Tobacco (JAPAF) has a 5-Year ROIIC % of 10.11 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Japan Tobacco and its competitors. According to the industry distribution chart, Japan Tobacco ranks #20 out of 43 companies in the Tobacco Products industry, placing it in the top 46.5%.
Is Japan Tobacco's 5-Year ROIIC % too high?
Japan Tobacco's current 5-Year ROIIC % is 10.11. The Tobacco Products industry median 5-Year ROIIC % is 1.20. Japan Tobacco's value of 10.11 is 742.5% above this industry median. Based on the distribution chart, Japan Tobacco ranks #20 out of 43 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Japan Tobacco has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Tobacco's 5-Year ROIIC % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Japan Tobacco ranks #20 out of 43 companies for 5-Year ROIIC %. This puts Japan Tobacco in the upper half of its industry. The industry median 5-Year ROIIC % is 1.20. Japan Tobacco's value of 10.11 is 742.5% 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 a Tobacco Products company?
The median 5-Year ROIIC % among Tobacco Products companies is 1.20, based on 43 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. Japan Tobacco's current 5-Year ROIIC % of 10.11 is 742.5% 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 Japan Tobacco and its competitors. For the Tobacco Products industry, the median 5-Year ROIIC % is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Tobacco's current 5-Year ROIIC % is 10.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Tobacco stock overvalued right now?
Based on GuruFocus' analysis, Japan Tobacco (JAPAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $33.13, compared to a current price of $37.50 — trading 13.2% above its estimated fair value. The current 5-Year ROIIC % is 10.11 and 742.5% above the Tobacco Products industry median of 1.20. Japan Tobacco's overall GF Score™ is 75/100 with 7 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 Japan Tobacco (JAPAF), the current 5-Year ROIIC % is 10.11 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 Japan Tobacco (JAPAF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Tobacco stock appears to be overvalued.
The current stock price of $37.50 is trading 13.2% above its estimated GF Value™ of $33.13.
GuruFocus considers Japan Tobacco to be Modestly Overvalued.
Key valuation signals for JAPAF:
5-Year ROIIC %: 10.11
GF Value™: $33.13 vs. price of $37.50 (13.2% above fair value)
Industry Position: 742.5% above the Tobacco Products median (#20 of 43)
No single metric tells the full story. See the JAPAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping, Ploom in heated tobacco, and Nordic Spirit in nicotine pouches, though these generates less than 5% of tobacco sales.
75GF Score
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