ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Founder Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 17.10%.
As of today (2026-06-25), Founder Holdings's WACC % is 7.29%. Founder Holdings's ROC % is 5.87% (calculated using TTM income statement data).
Founder Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Founder Holdings (OTCPK:FHGDF) 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, Founder Holdings's WACC % is 7.29%. Founder Holdings's ROC % is 5.87% (calculated using TTM income statement data).
Founder Holdings 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.
Founder Holdings ROC % Related Terms
Founder Holdings ROC % Historical Data
* Premium members only.
The historical data trend for Founder Holdings'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 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.
Founder Holdings (FHGDF) has a ROC % of 17.10% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Founder Holdings and its competitors.
Is Founder Holdings' ROC % too high?
Founder Holdings' current ROC % is 17.10%. The Software industry median ROC % is 3.11. Founder Holdings' value of 17.10% is 450.7% above this industry median. Overall, Founder Holdings has a GF Score™ of 46/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Founder Holdings' ROC % compare to CRM and SHOP?
Founder Holdings' ROC % of 17.10% can be compared against companies in the Software industry. The industry median ROC % is 3.11. Founder Holdings' value of 17.10% is 450.7% 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 2,828 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. Founder Holdings's current ROC % of 17.10% is 450.7% 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 Founder Holdings 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. Founder Holdings's current ROC % is 17.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Founder Holdings stock overvalued right now?
Based on GuruFocus' analysis, Founder Holdings (FHGDF) is currently considered Fairly Valued. The stock's GF Value™ is $0.07, compared to a current price of $0.07 — trading 5.4% above its estimated fair value. The current ROC % is 17.10% and 450.7% above the Software industry median of 3.11. Founder Holdings' overall GF Score™ is 46/100 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 Founder Holdings (FHGDF), the current ROC % is 17.10% 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 Founder Holdings (FHGDF) Overvalued in 2026?
Based on GuruFocus' analysis, Founder Holdings stock appears to be overvalued.
The current stock price of $0.07 is trading 5.4% above its estimated GF Value™ of $0.07.
GuruFocus considers Founder Holdings to be Fairly Valued.
Key valuation signals for FHGDF:
ROC %: 17.10%
GF Value™: $0.07 vs. price of $0.07 (5.4% above fair value)
Industry Position: 450.7% above the Software median
No single metric tells the full story. See the FHGDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founder Holdings Ltd is an investment holding company engaged in providing information technology (IT) system services. Its core activities include the sale of software, hardware, and information products, along with software development and system integration. The Group serves industries such as printing, media, publishing, big data, and font libraries, offering advanced information processing technologies, solutions, and value-added services to support seamless digital experiences. It operates in domestic and overseas markets, with the majority of its revenue generated from Mainland China, alongside operations in Hong Kong and other regions.
46GF Score
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