ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Happy City Holdings's annualized return on capital (ROC %) for the quarter that ended in Aug. 2025 was -68.74%.
As of today (2026-06-25), Happy City Holdings's WACC % is 10.27%. Happy City Holdings's ROC % is -28.58% (calculated using TTM income statement data).
Happy City Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Happy City Holdings (NAS:HCHL) 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, Happy City Holdings's WACC % is 10.27%. Happy City Holdings's ROC % is -28.58% (calculated using TTM income statement data).
Happy City 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.
Happy City Holdings ROC % Related Terms
Happy City Holdings ROC % Historical Data
* Premium members only.
The historical data trend for Happy City 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 (Aug. 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.
Happy City Holdings (HCHL) has a ROC % of -68.74% as of Aug. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Happy City Holdings and its competitors.
Is Happy City Holdings' ROC % too high?
Happy City Holdings' current ROC % is -68.74%. Overall, Happy City Holdings has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Happy City Holdings' ROC % compare to MB and RRGB?
Happy City Holdings' ROC % of -68.74% can be compared against companies in the Restaurants industry. The industry median ROC % is 4.21. 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 Restaurants company?
The median ROC % among Restaurants companies is 4.21, based on 359 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 Happy City Holdings and its competitors. For the Restaurants industry, the median ROC % is 4.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Happy City Holdings's current ROC % is -68.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Happy City Holdings stock overvalued right now?
Happy City Holdings (HCHL) has a current ROC % of -68.74%. The current ROC % is -68.74%. Happy City Holdings' overall GF Score™ is 13/100 with 1 warning sign 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 Happy City Holdings (HCHL), the current ROC % is -68.74% as of Aug. 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.
Happy City Holdings Ltd operates three all-you-can-eat hotpot restaurants and specializes in Thai and Japanese Hotpot under the brand names Thai Pot and Gyu! Gyu! Shabu Shabu in Hong Kong. These restaurants are located in Tsuen Wan in the New Territories, Mong Kok in Kowloon, and North Point on Hong Kong Island. The Company's of its operations are conducted in Hong Kong.
13GF Score
Get the complete analysis for HCHL
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
HCHL has been successfully added to your 