Sakai Heavy IndustriesTSE:6358 +2.04%79 WACC % is 4.43% as of Jul. 11, 2026, which is 0% below its 10-year median of 4.45. GuruFocus rates TSE:6358 with a GF Score™ of 79/100 and a GF Value™ of 円2,198.69 (Fairly Valued). The stock has 6 warning signs investors should review. Among 213 Farm & Heavy Construction Machinery companies, Sakai Heavy Industries ranks better than 88.73% on this metric.
As of today (2026-07-11), Sakai Heavy Industries's weighted average cost of capital is 4.43%%. Sakai Heavy Industries's ROIC % is 3.23% (calculated using TTM income statement data).
Sakai Heavy Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Sakai Heavy Industries (TSE:6358) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Sakai Heavy Industries's weighted average cost of capital is 4.43%%. Sakai Heavy Industries's ROIC % is 3.23% (calculated using TTM income statement data).
Sakai Heavy Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
* 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 Farm & Heavy Construction Machinery subindustry, Sakai Heavy Industries's WACC %, along with its competitors' market caps and WACC % 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.
Sakai Heavy Industries WACC % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Sakai Heavy Industries's WACC % distribution charts can be found below:
* The bar in red indicates where Sakai Heavy Industries's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Sakai Heavy Industries's market capitalization (E) is 円18487.894 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Sakai Heavy Industries's latest one-year semi-annual average Book Value of Debt (D) is 円5211.339 Mil.
a) weight of equity = E / (E + D) = 18487.894 / (18487.894 + 5211.339) = 0.7801
b) weight of debt = D / (E + D) = 5211.339 / (18487.894 + 5211.339) = 0.2199
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 2.65%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Sakai Heavy Industries's beta is 0.3641.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 2.65% + 0.3641 * 6% = 4.8346%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Mar. 2026, Sakai Heavy Industries's interest expense (positive number) was 円223.843 Mil. Its total Book Value of Debt (D) is 円5211.339 Mil.
Cost of Debt = 223.843 / 5211.339 = 4.2953%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 759.064 / 2527.166 = 30.04%.
Sakai Heavy Industries's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.7801
*
4.8346%
+
0.2199
*
4.2953%
*
(1 - 30.04%)
=
4.43%
* 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.
Sakai Heavy Industries (TSE:6358) has a WACC % of 4.43% as of Jul. 11, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sakai Heavy Industries and its competitors. This is near median its historical median of 4.45. Over the past decade, Sakai Heavy Industries' WACC % has ranged from 1.45 to 6.05. According to the industry distribution chart, Sakai Heavy Industries ranks #24 out of 213 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 11.3%.
Is Sakai Heavy Industries' WACC % too high?
Sakai Heavy Industries' current WACC % of 4.43% is near median its 10-year median of 4.45. Over the past 10 years, this metric has ranged from a low of 1.45 to a high of 6.05. The Farm & Heavy Construction Machinery industry median WACC % is 9.38. Sakai Heavy Industries' value of 4.43% is 52.8% below this industry median. Based on the distribution chart, Sakai Heavy Industries ranks #24 out of 213 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Sakai Heavy Industries has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sakai Heavy Industries' WACC % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Sakai Heavy Industries ranks #24 out of 213 companies for WACC %. This places Sakai Heavy Industries in the top 11% of its industry — outperforming the majority of peers. The industry median WACC % is 9.38. Sakai Heavy Industries' value of 4.43% is 52.8% below this benchmark. Historically, Sakai Heavy Industries' own WACC % has ranged from 1.45 to 6.05 over the past decade. While the company's 10-year median is 4.45 vs. the industry median of 9.38, Sakai Heavy Industries has consistently been below 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 WACC % for a Farm & Heavy Construction Machinery company?
The median WACC % among Farm & Heavy Construction Machinery companies is 9.38, based on 213 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sakai Heavy Industries's current WACC % of 4.43% is 52.8% below 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 WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sakai Heavy Industries and its competitors. For the Farm & Heavy Construction Machinery industry, the median WACC % is 9.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sakai Heavy Industries's current WACC % is 4.43%, which is near median its own 10-year median of 4.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sakai Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Sakai Heavy Industries (TSE:6358) is currently considered Fairly Valued. The stock's GF Value™ is 円2,198.69, compared to a current price of 円2,156.00 — trading 1.9% below its estimated fair value. The current WACC % is 4.43%, which is near median its 10-year median of 4.45 and 52.8% below the Farm & Heavy Construction Machinery industry median of 9.38. Sakai Heavy Industries' overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Sakai Heavy Industries (TSE:6358), the current WACC % is 4.43% as of Jul. 11, 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 Sakai Heavy Industries (TSE:6358) Overvalued in 2026?
Based on GuruFocus' analysis, Sakai Heavy Industries stock appears to be undervalued.
The current stock price of 円2,156.00 is trading 1.9% below its estimated GF Value™ of 円2,198.69.
GuruFocus considers Sakai Heavy Industries to be Fairly Valued.
Key valuation signals for TSE:6358:
WACC %: 4.43% (near median its 10-year median of 4.45)
GF Value™: 円2,198.69 vs. price of 円2,156.00 (1.9% below fair value)
Industry Position: 52.8% below the Farm & Heavy Construction Machinery median (#24 of 213)
No single metric tells the full story. See the TSE:6358 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sakai Heavy Industries Ltd is a Japan-based construction machinery manufacturing company. It is mainly engaged in the manufacturing and sale of compaction, road maintenance, and repair machines. Products offered by the company include earthmoving vibration roller, earthmoving vibration tandem roller, tire roller, macadam roller, vibrating tandem roller, vibrating combined roller, vibrating tire roller, vibrating macadam roller, rammer, plate compactor, backward and reverse plate compactor, handguide roller, road cutter, road stabilizer, asphalt finisher, drainage paving function recovery car, and sprinkler wheel.
79GF Score
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