ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Allied Telesis Holdings KK's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 17.13%.
As of today (2026-06-27), Allied Telesis Holdings KK's WACC % is 2.35%. Allied Telesis Holdings KK's ROC % is 12.36% (calculated using TTM income statement data).
Allied Telesis Holdings KK generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Allied Telesis Holdings KK (OTCPK:ATSKF) 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, Allied Telesis Holdings KK's WACC % is 2.35%. Allied Telesis Holdings KK's ROC % is 12.36% (calculated using TTM income statement data).
Allied Telesis Holdings KK generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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 four times the quarterly (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.
Allied Telesis Holdings KK (ATSKF) has a ROC % of 17.13% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Allied Telesis Holdings KK and its competitors.
Is Allied Telesis Holdings KK's ROC % too high?
Allied Telesis Holdings KK's current ROC % is 17.13%. The Hardware industry median ROC % is 4.12. Allied Telesis Holdings KK's value of 17.13% is 316.3% above this industry median. Overall, Allied Telesis Holdings KK has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Allied Telesis Holdings KK's ROC % compare to CSCO and CIEN?
Allied Telesis Holdings KK's ROC % of 17.13% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Allied Telesis Holdings KK's value of 17.13% is 316.3% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Allied Telesis Holdings KK's current ROC % of 17.13% is 316.3% 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 Allied Telesis Holdings KK and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allied Telesis Holdings KK's current ROC % is 17.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allied Telesis Holdings KK stock overvalued right now?
Allied Telesis Holdings KK (ATSKF) has a current ROC % of 17.13%. The stock's GF Value™ is $0.49, compared to a current price of $0.88 — trading 78.7% above its estimated fair value. The current ROC % is 17.13% and 316.3% above the Hardware industry median of 4.12. Allied Telesis Holdings KK's overall GF Score™ is 60/100 with 2 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 Allied Telesis Holdings KK (ATSKF), the current ROC % is 17.13% 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 Allied Telesis Holdings KK (ATSKF) Overvalued in 2026?
Based on GuruFocus' analysis, Allied Telesis Holdings KK stock appears to be overvalued.
The current stock price of $0.88 is trading 78.7% above its estimated GF Value™ of $0.49.
Key valuation signals for ATSKF:
ROC %: 17.13%
GF Value™: $0.49 vs. price of $0.88 (78.7% above fair value)
Industry Position: 316.3% above the Hardware median
No single metric tells the full story. See the ATSKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allied Telesis Holdings KK is a Japan-based company engaged in the planning, development, manufacture, and sales of network devices and solutions. The company operates in three businesses namely network products, solutions, and support services. Its network products business manufactures software and hardware related products. The solutions business provides optimum ecosystem solutions. Its support services business is involved in planning and consulting, installation and structuring, operation and monitoring, and education and related support businesses.
60GF Score
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