ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ECN Capital's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.74%.
As of today (2026-06-25), ECN Capital's WACC % is 5.00%. ECN Capital's ROC % is 2.61% (calculated using TTM income statement data).
ECN Capital earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ECN Capital (OTCPK:ECNCF) 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, ECN Capital's WACC % is 5.00%. ECN Capital's ROC % is 2.61% (calculated using TTM income statement data).
ECN Capital 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.
ECN Capital ROC % Related Terms
ECN Capital ROC % Historical Data
* Premium members only.
The historical data trend for ECN Capital'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 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.
ECN Capital (ECNCF) has a ROC % of 3.74% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ECN Capital and its competitors.
Is ECN Capital's ROC % too high?
ECN Capital's current ROC % is 3.74%. The Banks industry median ROC % is 1.98. ECN Capital's value of 3.74% is 89.4% above this industry median. Overall, ECN Capital has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ECN Capital's ROC % compare to RKT and FNMA?
ECN Capital's ROC % of 3.74% can be compared against companies in the Banks industry. The industry median ROC % is 1.98. ECN Capital's value of 3.74% is 89.4% 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 Banks company?
The median ROC % among Banks companies is 1.98, based on 48 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. ECN Capital's current ROC % of 3.74% is 89.4% 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 ECN Capital and its competitors. For the Banks industry, the median ROC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ECN Capital's current ROC % is 3.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ECN Capital stock overvalued right now?
Based on GuruFocus' analysis, ECN Capital (ECNCF) is currently considered Fairly Valued. The stock's GF Value™ is $2.43, compared to a current price of $2.26 — trading 7% below its estimated fair value. The current ROC % is 3.74% and 89.4% above the Banks industry median of 1.98. ECN Capital's overall GF Score™ is 48/100 with 6 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 ECN Capital (ECNCF), the current ROC % is 3.74% 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 ECN Capital (ECNCF) Overvalued in 2026?
Based on GuruFocus' analysis, ECN Capital stock appears to be undervalued.
The current stock price of $2.26 is trading 7% below its estimated GF Value™ of $2.43.
GuruFocus considers ECN Capital to be Fairly Valued.
Key valuation signals for ECNCF:
ROC %: 3.74%
GF Value™: $2.43 vs. price of $2.26 (7% below fair value)
No single metric tells the full story. See the ECNCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ECN Capital Corp is a financial business service provider. The group originates, manages, and advises on credit assets on behalf of its partners, specifically consumer loans and commercial loans. Its operating segments are: Manufactured Housing Finance and Recreational Vehicle and Marine (RV and Marine) Finance. The group generates maximum revenue from the Manufactured Housing Finance segment.
48GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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