ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Euro Tech Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.90%.
As of today (2026-06-24), Euro Tech Holdings Co's WACC % is 9.39%. Euro Tech Holdings Co's ROC % is -1.57% (calculated using TTM income statement data).
Euro Tech Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Euro Tech Holdings Co (NAS:CLWT) 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, Euro Tech Holdings Co's WACC % is 9.39%. Euro Tech Holdings Co's ROC % is -1.57% (calculated using TTM income statement data).
Euro Tech Holdings Co 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.
Euro Tech Holdings Co (CLWT) has a ROC % of 1.90% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Euro Tech Holdings Co and its competitors.
Is Euro Tech Holdings Co's ROC % too high?
Euro Tech Holdings Co's current ROC % is 1.90%. The Industrial Products industry median ROC % is 5.23. Euro Tech Holdings Co's value of 1.90% is 63.7% below this industry median. Overall, Euro Tech Holdings Co has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Euro Tech Holdings Co's ROC % compare to LIQT and EESH?
Euro Tech Holdings Co's ROC % of 1.90% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. Euro Tech Holdings Co's value of 1.90% is 63.7% 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 Industrial Products company?
The median ROC % among Industrial Products companies is 5.23, based on 3,039 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. Euro Tech Holdings Co's current ROC % of 1.90% is 63.7% 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 Euro Tech Holdings Co and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Euro Tech Holdings Co's current ROC % is 1.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Euro Tech Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Euro Tech Holdings Co (CLWT) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.17, compared to a current price of $1.66 — trading 41.9% above its estimated fair value. The current ROC % is 1.90% and 63.7% below the Industrial Products industry median of 5.23. Euro Tech Holdings Co's overall GF Score™ is 60/100 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 Euro Tech Holdings Co (CLWT), the current ROC % is 1.90% 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 Euro Tech Holdings Co (CLWT) Overvalued in 2026?
Based on GuruFocus' analysis, Euro Tech Holdings Co stock appears to be overvalued.
The current stock price of $1.66 is trading 41.9% above its estimated GF Value™ of $1.17.
GuruFocus considers Euro Tech Holdings Co to be Significantly Overvalued.
Key valuation signals for CLWT:
ROC %: 1.90%
GF Value™: $1.17 vs. price of $1.66 (41.9% above fair value)
Industry Position: 63.7% below the Industrial Products median
No single metric tells the full story. See the CLWT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Euro Tech Holdings Co Ltd is mainly a distributor of a wide range of water treatment equipment, laboratory instruments, analyzers, test kits, and related supplies, and power generation equipment, including recorders and power quality analyzers. The Company acts as an exclusive or non-exclusive distributor for manufacturers of such equipment to commercial customers and governmental agencies in Hong Kong and mainland China, as well as commercial customers in Macau. It has two operating segments: Trading and manufacturing, which generate maximum revenue and act as a distributor of water treatment equipment, laboratory instruments, analyzers, test kits, related supplies, and power generation equipment; and the Engineering segment. The Company generates maximum revenue from the PRC.
60GF Score
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