ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Highlight Communications AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -3.72%.
As of today (2026-06-26), Highlight Communications AG's WACC % is 7.13%. Highlight Communications AG's ROC % is -5.50% (calculated using TTM income statement data).
Highlight Communications AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Highlight Communications AG (CHIX:HLGd) 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, Highlight Communications AG's WACC % is 7.13%. Highlight Communications AG's ROC % is -5.50% (calculated using TTM income statement data).
Highlight Communications AG 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.
Highlight Communications AG (CHIX:HLGD) has a ROC % of -3.72% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Highlight Communications AG and its competitors.
Is Highlight Communications AG's ROC % too high?
Highlight Communications AG's current ROC % is -3.72%. Overall, Highlight Communications AG has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Highlight Communications AG's ROC % compare to NFLX and DIS?
Highlight Communications AG's ROC % of -3.72% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.41. 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.41, based on 1,016 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. 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 Highlight Communications AG and its competitors. For the Media - Diversified industry, the median ROC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Highlight Communications AG's current ROC % is -3.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highlight Communications AG stock overvalued right now?
Highlight Communications AG (CHIX:HLGD) has a current ROC % of -3.72%. The stock's GF Value™ is €9.36, compared to a current price of €3.91 — trading 58.2% below its estimated fair value. The current ROC % is -3.72%. Highlight Communications AG's overall GF Score™ is 44/100 with 4 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 Highlight Communications AG (CHIX:HLGD), the current ROC % is -3.72% 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 Highlight Communications AG (CHIX:HLGD) Overvalued in 2026?
Based on GuruFocus' analysis, Highlight Communications AG stock appears to be undervalued.
The current stock price of €3.91 is trading 58.2% below its estimated GF Value™ of €9.36.
Key valuation signals for CHIX:HLGD:
ROC %: -3.72%
GF Value™: €9.36 vs. price of €3.91 (58.2% below fair value)
No single metric tells the full story. See the CHIX:HLGD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highlight Communications AG is a Switzerland-based financial holding company. The company is a film production and license company in German-speaking countries. Its two operating segments include Film and Sports and Event. In the Film segment, the company, along with its subsidiaries, is a producer and distributor of cinema, video, and TV films. In addition to owning and co-producing, it acquires the exploitation rights to third-party productions. The Sports and Event segment mainly comprises activities in the TV and digital areas with the umbrella brand SPORT1 and in the area of production, content solutions services, and content marketing with PLAZAMEDIA. The majority of the comapny's revenue is derived from the Film segment.
44GF Score
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