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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.
Nippon Hotel & Residential Investment's 5-Year ROIIC % for the quarter that ended in Nov. 2025 was 5.19%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
TSE:3472's 5-Year ROIIC % is ranked better than 59.49% of 622
companies
in the REITs industry
Industry Median: 4.115
vs TSE:3472: 5.19
Nippon Hotel & Residential Investment (TSE:3472) 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.
Nippon Hotel & Residential Investment 5-Year ROIIC % Related Terms
Nippon Hotel & Residential Investment 5-Year ROIIC % Historical Data
* 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.
Nippon Hotel & Residential Investment 5-Year ROIIC % Chart
TSE:3472 vs HST, RHP, APLE: 5-Year ROIIC % Comparison
For the REIT - Hotel & Motel subindustry, Nippon Hotel & Residential Investment'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.
Nippon Hotel & Residential Investment 5-Year ROIIC % vs REITs Industry
* 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.
Nippon Hotel & Residential Investment (TSE:3472) has a 5-Year ROIIC % of 5.19 as of Nov. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Nippon Hotel & Residential Investment and its competitors. According to the industry distribution chart, Nippon Hotel & Residential Investment ranks #252 out of 622 companies in the REITs industry, placing it in the top 40.5%.
Is Nippon Hotel & Residential Investment's 5-Year ROIIC % too high?
Nippon Hotel & Residential Investment's current 5-Year ROIIC % is 5.19. The REITs industry median 5-Year ROIIC % is 4.12. Nippon Hotel & Residential Investment's value of 5.19 is 26.1% above this industry median. Based on the distribution chart, Nippon Hotel & Residential Investment ranks #252 out of 622 companies in the REITs industry, which is above the industry midpoint. Overall, Nippon Hotel & Residential Investment has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Hotel & Residential Investment's 5-Year ROIIC % compare to HST and RHP?
According to the REITs industry distribution chart, Nippon Hotel & Residential Investment ranks #252 out of 622 companies for 5-Year ROIIC %. This puts Nippon Hotel & Residential Investment in the upper half of its industry. The industry median 5-Year ROIIC % is 4.12. Nippon Hotel & Residential Investment's value of 5.19 is 26.1% 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 REITs company?
The median 5-Year ROIIC % among REITs companies is 4.12, based on 622 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. Nippon Hotel & Residential Investment's current 5-Year ROIIC % of 5.19 is 26.1% 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 Nippon Hotel & Residential Investment and its competitors. For the REITs industry, the median 5-Year ROIIC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Hotel & Residential Investment's current 5-Year ROIIC % is 5.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Hotel & Residential Investment stock overvalued right now?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment (TSE:3472) is currently considered Modestly Undervalued. The stock's GF Value™ is 円74,639.35, compared to a current price of 円65,800.00 — trading 11.8% below its estimated fair value. The current 5-Year ROIIC % is 5.19 and 26.1% above the REITs industry median of 4.12. Nippon Hotel & Residential Investment's overall GF Score™ is 55/100 with 5 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 Nippon Hotel & Residential Investment (TSE:3472), the current 5-Year ROIIC % is 5.19 as of Nov. 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 Nippon Hotel & Residential Investment (TSE:3472) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment stock appears to be undervalued.
The current stock price of 円65,800.00 is trading 11.8% below its estimated GF Value™ of 円74,639.35.
GuruFocus considers Nippon Hotel & Residential Investment to be Modestly Undervalued.
Key valuation signals for TSE:3472:
5-Year ROIIC %: 5.19
GF Value™: 円74,639.35 vs. price of 円65,800.00 (11.8% below fair value)
Industry Position: 26.1% above the REITs median (#252 of 622)
No single metric tells the full story. See the TSE:3472 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Hotel & Residential Investment Business Description
Nippon Hotel & Residential Investment Corp is a real estate investment trust. The firm invests in onsen and spa-related facilities, and Accomodation. The company principally invests in hot spring-related industries, such as hotels, hot spring facilities and theme parks.
55GF Score
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