ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. XPON Technologies Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 10.17%.
As of today (2026-06-26), XPON Technologies Group's WACC % is 16.49%. XPON Technologies Group's ROC % is 4.54% (calculated using TTM income statement data).
XPON Technologies Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
XPON Technologies Group (ASX:XPN) 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, XPON Technologies Group's WACC % is 16.49%. XPON Technologies Group's ROC % is 4.54% (calculated using TTM income statement data).
XPON Technologies 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.
* 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.
XPON Technologies Group (ASX:XPN) has a ROC % of 10.17% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on XPON Technologies Group and its competitors.
Is XPON Technologies Group's ROC % too high?
XPON Technologies Group's current ROC % is 10.17%. The Software industry median ROC % is 3.11. XPON Technologies Group's value of 10.17% is 227.5% above this industry median.
How does XPON Technologies Group's ROC % compare to MSFT and ORCL?
XPON Technologies Group's ROC % of 10.17% can be compared against companies in the Software industry. The industry median ROC % is 3.11. XPON Technologies Group's value of 10.17% is 227.5% 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 ROC % for a Software company?
The median ROC % among Software companies is 3.11, based on 2,830 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. XPON Technologies Group's current ROC % of 10.17% is 227.5% 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 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 XPON Technologies Group and its competitors. For the Software industry, the median ROC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XPON Technologies Group's current ROC % is 10.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XPON Technologies Group stock overvalued right now?
Based on GuruFocus' analysis, XPON Technologies Group (ASX:XPN) is currently considered Fairly Valued. The stock's GF Value™ is A$0.01, compared to a current price of A$0.01 — trading 5% below its estimated fair value. The current ROC % is 10.17% and 227.5% above the Software industry median of 3.11. 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 XPON Technologies Group (ASX:XPN), the current ROC % is 10.17% 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.
XPON Technologies Group Ltd is engaged in providing cloud-based marketing technology solutions which enabled business-critical marketing platforms, Adtech, ML / AI and cloud technologies; performance marketing, programmatic and video advertising, social and content marketing, SEO and analytics and; a next-generation data platform for marketers that centralizes customer & marketing data, supercharging it with AI for automated activation.
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