ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. NextEd Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.80%.
As of today (2026-06-26), NextEd Group's WACC % is 1.89%. NextEd Group's ROC % is -1.04% (calculated using TTM income statement data).
NextEd Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
NextEd Group (ASX:NXD) 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, NextEd Group's WACC % is 1.89%. NextEd Group's ROC % is -1.04% (calculated using TTM income statement data).
NextEd Group 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.
NextEd Group ROC % Related Terms
NextEd Group ROC % Historical Data
* Premium members only.
The historical data trend for NextEd Group'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.
NextEd Group (ASX:NXD) has a ROC % of 0.80% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on NextEd Group and its competitors.
Is NextEd Group's ROC % too high?
NextEd Group's current ROC % is 0.80%. The Education industry median ROC % is 5.00. NextEd Group's value of 0.80% is 84% below this industry median.
How does NextEd Group's ROC % compare to EDU and TAL?
NextEd Group's ROC % of 0.80% can be compared against companies in the Education industry. The industry median ROC % is 5.00. NextEd Group's value of 0.80% is 84% 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 an Education company?
The median ROC % among Education companies is 5.00, based on 261 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. NextEd Group's current ROC % of 0.80% is 84% 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 NextEd Group and its competitors. For the Education industry, the median ROC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NextEd Group's current ROC % is 0.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NextEd Group stock overvalued right now?
Based on GuruFocus' analysis, NextEd Group (ASX:NXD) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.23, compared to a current price of A$0.08 — trading 64.3% below its estimated fair value. The current ROC % is 0.80% and 84% below the Education industry median of 5.00. 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 NextEd Group (ASX:NXD), the current ROC % is 0.80% 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.
NextEd Group Ltd is engaged in the provision of vocational education and training solutions. It is a listed private education provider, delivering learning experiences through a national campus network across Adelaide, Brisbane, Gold Coast, Melbourne, Perth, and Sydney. NextEd offers courses across the English Language, Vocational, and Higher Education sectors, spanning industries including business, technology, design, hospitality, health, and community services. In addition, it provides education recruitment agency services to international students. The group's operating segments are: International, which generates maximum revenue, Technology and Design, Domestic Vocational, and Go Study. Geographically, it generates maximum revenue from Australia, followed by Europe and South America.
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