ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. XJ International Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 5.01%.
As of today (2026-07-01), XJ International Holdings Co's WACC % is 5.17%. XJ International Holdings Co's ROC % is 3.33% (calculated using TTM income statement data).
XJ International Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
XJ International Holdings Co (FRA:HE1) 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, XJ International Holdings Co's WACC % is 5.17%. XJ International Holdings Co's ROC % is 3.33% (calculated using TTM income statement data).
XJ International 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.
XJ International Holdings Co ROC % Related Terms
XJ International Holdings Co ROC % Historical Data
* 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 (Feb. 2026) 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.
XJ International Holdings Co (FRA:HE1) has a ROC % of 5.01% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on XJ International Holdings Co and its competitors.
Is XJ International Holdings Co's ROC % too high?
XJ International Holdings Co's current ROC % is 5.01%. The Education industry median ROC % is 5.00. XJ International Holdings Co's value of 5.01% is 0.2% above this industry median. Overall, XJ International Holdings Co has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does XJ International Holdings Co's ROC % compare to EDU and TAL?
XJ International Holdings Co's ROC % of 5.01% can be compared against companies in the Education industry. The industry median ROC % is 5.00. XJ International Holdings Co's value of 5.01% is 0.2% 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 an Education company?
The median ROC % among Education companies is 5.00, based on 259 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. XJ International Holdings Co's current ROC % of 5.01% is 0.2% 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 XJ International Holdings Co and its competitors. For the Education industry, the median ROC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XJ International Holdings Co's current ROC % is 5.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XJ International Holdings Co stock overvalued right now?
XJ International Holdings Co (FRA:HE1) has a current ROC % of 5.01%. The stock's GF Value™ is €0.03, compared to a current price of €0.02 — trading 43.3% below its estimated fair value. The current ROC % is 5.01% and 0.2% above the Education industry median of 5.00. XJ International Holdings Co's overall GF Score™ is 54/100 with 5 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 XJ International Holdings Co (FRA:HE1), the current ROC % is 5.01% as of Feb. 2026. 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 XJ International Holdings Co (FRA:HE1) Overvalued in 2026?
Based on GuruFocus' analysis, XJ International Holdings Co stock appears to be undervalued.
The current stock price of €0.02 is trading 43.3% below its estimated GF Value™ of €0.03.
Key valuation signals for FRA:HE1:
ROC %: 5.01%
GF Value™: €0.03 vs. price of €0.02 (43.3% below fair value)
Industry Position: 0.2% above the Education median
No single metric tells the full story. See the FRA:HE1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XJ International Holdings Co Ltd formerly Hope Education Group Co Ltd is an investment holding company engaged in providing educational services. The company operates higher educational schools which include universities and junior colleges. Some of its colleges are Southwest Jiaotong University Hope Colleges, Business College of Guizhou University of Finance and Economics, Sichuan TOP IT Vocational Institute, and One Technical College among others. Its operating segments are the Domestic education which is the key revenue generating segment, global education segment and others. The company generates its revenue from tuition fees, boarding fees, sales of books and daily necessities, and others. Geographically company also operates in Malaysia, Thailand and Hungary.
54GF Score
Get the complete analysis for FRA:HE1
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:HE1 has been successfully added to your 
