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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.
Japan Business Systems's 5-Year ROIIC % for the quarter that ended in Sep. 2025 was 30.67%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Japan Business Systems's 5-Year ROIIC % or its related term are showing as below:
TSE:5036's 5-Year ROIIC % is ranked better than 79.14% of 2320
companies
in the Software industry
Industry Median: 5.125
vs TSE:5036: 30.67
Japan Business Systems (TSE:5036) 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 Business Systems 5-Year ROIIC % Related Terms
Japan Business Systems 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Japan Business Systems'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.
TSE:5036 vs MSFT, ORCL, PLTR: 5-Year ROIIC % Comparison
For the Software - Infrastructure subindustry, Japan Business Systems'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 Business Systems 5-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Japan Business Systems's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Japan Business Systems's 5-Year ROIIC % falls into.
Japan Business Systems's 5-Year ROIIC % for the quarter that ended in Sep. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 13677.435 (Sep. 2025) - 897.5116 (Sep. 2020) )
/
( 61096 (Sep. 2025) - 19424 (Sep. 2020) )
=
12779.9234
/
41672
=
30.67%***
* 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 Business Systems (TSE:5036) has a 5-Year ROIIC % of 30.67 as of Sep. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Japan Business Systems and its competitors. According to the industry distribution chart, Japan Business Systems ranks #484 out of 2320 companies in the Software industry, placing it in the top 20.9%.
Is Japan Business Systems' 5-Year ROIIC % too high?
Japan Business Systems' current 5-Year ROIIC % is 30.67. The Software industry median 5-Year ROIIC % is 5.13. Japan Business Systems' value of 30.67 is 498.4% above this industry median. Based on the distribution chart, Japan Business Systems ranks #484 out of 2320 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Business Systems has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Japan Business Systems' 5-Year ROIIC % compare to MSFT and ORCL?
According to the Software industry distribution chart, Japan Business Systems ranks #484 out of 2320 companies for 5-Year ROIIC %. This places Japan Business Systems in the top 21% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 5.13. Japan Business Systems' value of 30.67 is 498.4% 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 Software company?
The median 5-Year ROIIC % among Software companies is 5.13, based on 2,320 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 Business Systems's current 5-Year ROIIC % of 30.67 is 498.4% 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 Business Systems and its competitors. For the Software industry, the median 5-Year ROIIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Business Systems's current 5-Year ROIIC % is 30.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Business Systems stock overvalued right now?
Based on GuruFocus' analysis, Japan Business Systems (TSE:5036) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,018.53, compared to a current price of 円1,600.00 — trading 20.7% below its estimated fair value. The current 5-Year ROIIC % is 30.67 and 498.4% above the Software industry median of 5.13. Japan Business Systems' overall GF Score™ is 77/100 with 3 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 Business Systems (TSE:5036), the current 5-Year ROIIC % is 30.67 as of Sep. 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 Business Systems (TSE:5036) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Business Systems stock appears to be undervalued.
The current stock price of 円1,600.00 is trading 20.7% below its estimated GF Value™ of 円2,018.53.
GuruFocus considers Japan Business Systems to be Modestly Undervalued.
Key valuation signals for TSE:5036:
5-Year ROIIC %: 30.67
GF Value™: 円2,018.53 vs. price of 円1,600.00 (20.7% below fair value)
Industry Position: 498.4% above the Software median (#484 of 2320)
No single metric tells the full story. See the TSE:5036 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Business Systems Inc operates in the information technology sector. The company works with cloud companies, various hardware and software manufacturers, research institutes and universities, etc., to provide cloud services to its clients. It is a cloud services integrator that provides consulting and IT services that can maximize customer performance by utilizing cloud services centered on Microsoft. The various services offered by the company include digital transformation, cloud infrastructure solutions, SAP system solutions, Microsoft 365 and Power platform-related solutions, and others. Its reportable segments are; Cloud Integration, which derives key revenue, and Cloud Services. Geographically, the company operates in Japan.
77GF Score
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