ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Datronix Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -2.24%.
As of today (2026-07-08), Datronix Holdings's WACC % is 5.72%. Datronix Holdings's ROC % is -2.58% (calculated using TTM income statement data).
Datronix Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Datronix Holdings (HKSE:00889) 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, Datronix Holdings's WACC % is 5.72%. Datronix Holdings's ROC % is -2.58% (calculated using TTM income statement data).
Datronix 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.
Datronix Holdings ROC % Related Terms
Datronix Holdings ROC % Historical Data
* Premium members only.
The historical data trend for Datronix 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.
Datronix Holdings (HKSE:00889) has a ROC % of -2.24% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Datronix Holdings and its competitors.
Is Datronix Holdings' ROC % too high?
Datronix Holdings' current ROC % is -2.24%. Overall, Datronix Holdings has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Datronix Holdings' ROC % compare to APH and GLW?
Datronix Holdings' ROC % of -2.24% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,443 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 Datronix Holdings and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Datronix Holdings's current ROC % is -2.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Datronix Holdings stock overvalued right now?
Based on GuruFocus' analysis, Datronix Holdings (HKSE:00889) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.26, compared to a current price of HK$0.53 — trading 103.8% above its estimated fair value. The current ROC % is -2.24%. Datronix Holdings' overall GF Score™ is 36/100 with 2 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 Datronix Holdings (HKSE:00889), the current ROC % is -2.24% 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 Datronix Holdings (HKSE:00889) Overvalued in 2026?
Based on GuruFocus' analysis, Datronix Holdings stock appears to be overvalued.
The current stock price of HK$0.53 is trading 103.8% above its estimated GF Value™ of HK$0.26.
GuruFocus considers Datronix Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00889:
ROC %: -2.24%
GF Value™: HK$0.26 vs. price of HK$0.53 (103.8% above fair value)
No single metric tells the full story. See the HKSE:00889 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Datronix Holdings Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the design, manufacture, and sale of magnetic components used in consumer electronics, data processing appliances, and healthcare devices. Its products are marketed under the Datatronics brand name. The Group's products are used in consumer electronics, data processing appliances, and other electronics systems for coupling, isolation, filtering, interfacing, and timing control applications. Its product line consists of Transformers, LAN Filter Modules, Digital Delay Modules, Inductors/Chokes, ASDL Transformer, Planar Magnetics, and others. Geographically, the Group generates maximum revenue from the United States, and the rest from the PRC, the European Union, and other countries.
36GF Score
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