ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. HMC Capital's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.39%.
As of today (2026-06-24), HMC Capital's WACC % is 11.45%. HMC Capital's ROC % is 2.27% (calculated using TTM income statement data).
HMC Capital earns returns that do not match up to its cost of capital. It will destroy value as it grows.
HMC Capital (ASX:HMC) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment 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, HMC Capital's WACC % is 11.45%. HMC Capital's ROC % is 2.27% (calculated using TTM income statement data).
HMC Capital earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
HMC Capital ROC % Related Terms
HMC Capital ROC % Historical Data
* Premium members only.
The historical data trend for HMC Capital's ROC % 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.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
HMC Capital (ASX:HMC) has a ROC % of 1.39% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on HMC Capital and its competitors.
Is HMC Capital's ROC % too high?
HMC Capital's current ROC % is 1.39%. The REITs industry median ROC % is 3.74. HMC Capital's value of 1.39% is 62.8% below this industry median. Overall, HMC Capital has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HMC Capital's ROC % compare to VICI and WPC?
HMC Capital's ROC % of 1.39% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. HMC Capital's value of 1.39% is 62.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a REITs company?
The median ROC % among REITs companies is 3.74, based on 750 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HMC Capital's current ROC % of 1.39% is 62.8% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on HMC Capital and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HMC Capital's current ROC % is 1.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HMC Capital stock overvalued right now?
Based on GuruFocus' analysis, HMC Capital (ASX:HMC) is currently considered Possible Value Trap. The stock's GF Value™ is A$14.14, compared to a current price of A$2.95 — trading 79.1% below its estimated fair value. The current ROC % is 1.39% and 62.8% below the REITs industry median of 3.74. HMC Capital's overall GF Score™ is 65/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For HMC Capital (ASX:HMC), the current ROC % is 1.39% 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 HMC Capital (ASX:HMC) Overvalued in 2026?
Based on GuruFocus' analysis, HMC Capital stock appears to be undervalued.
The current stock price of A$2.95 is trading 79.1% below its estimated GF Value™ of A$14.14.
GuruFocus considers HMC Capital to be Possible Value Trap.
Key valuation signals for ASX:HMC:
ROC %: 1.39%
GF Value™: A$14.14 vs. price of A$2.95 (79.1% below fair value)
No single metric tells the full story. See the ASX:HMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HMC Capital Ltd is a property group focused on ownership, development, and management. The company's operating segment includes Real Estate which comprises of HMC Capital managed HomeCo Daily Needs REIT, HealthCo Healthcare and Wellness REIT, HMC Wholesale Healthcare Fund and the Last Mile Logistics Fund; Private Equity which includes the HMC Capital Partners Fund I, a high conviction strategic stakes fund; and Corporate properties which includes unallocated costs and Capital Solutions activities which includes short term investments undertaken relating to non-HMC managed funds. It generates maximum revenue from the Real Estate segment. The company portfolio comprises mainly retail and services centers.
65GF Score
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