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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. CTR Holdings's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 22.80%.
As of today (2026-07-19), CTR Holdings's WACC % is 8.83%. CTR Holdings's ROC % is 24.72% (calculated using TTM income statement data).
CTR Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
CTR Holdings (HKSE:01416) 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, CTR Holdings's WACC % is 8.83%. CTR Holdings's ROC % is 24.72% (calculated using TTM income statement data).
CTR Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
CTR Holdings ROC % Related Terms
CTR Holdings ROC % Historical Data
* Premium members only.
The historical data trend for CTR 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 (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.
CTR Holdings (HKSE:01416) has a ROC % of 22.80% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CTR Holdings and its competitors.
Is CTR Holdings' ROC % too high?
CTR Holdings' current ROC % is 22.80%. The Construction industry median ROC % is 4.67. CTR Holdings' value of 22.80% is 388.2% above this industry median. Overall, CTR Holdings has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CTR Holdings' ROC % compare to PWR and FIX?
CTR Holdings' ROC % of 22.80% can be compared against companies in the Construction industry. The industry median ROC % is 4.67. CTR Holdings' value of 22.80% is 388.2% 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 a Construction company?
The median ROC % among Construction companies is 4.67, based on 1,759 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. CTR Holdings's current ROC % of 22.80% is 388.2% 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 CTR Holdings and its competitors. For the Construction industry, the median ROC % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CTR Holdings's current ROC % is 22.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CTR Holdings stock overvalued right now?
Based on GuruFocus' analysis, CTR Holdings (HKSE:01416) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.15, compared to a current price of HK$0.18 — trading 20% above its estimated fair value. The current ROC % is 22.80% and 388.2% above the Construction industry median of 4.67. CTR Holdings' overall GF Score™ is 67/100 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 CTR Holdings (HKSE:01416), the current ROC % is 22.80% 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 CTR Holdings (HKSE:01416) Overvalued in 2026?
Based on GuruFocus' analysis, CTR Holdings stock appears to be overvalued.
The current stock price of HK$0.18 is trading 20% above its estimated GF Value™ of HK$0.15.
GuruFocus considers CTR Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:01416:
ROC %: 22.80%
GF Value™: HK$0.15 vs. price of HK$0.18 (20% above fair value)
Industry Position: 388.2% above the Construction median
No single metric tells the full story. See the HKSE:01416 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CTR Holdings Ltd is an investment holding company. The company focuses on the provision of structural engineering works and wet architectural works services. The company generates maximum revenue from Structural engineering works. Geographically, the company derives revenue from Singapore. The Structural engineering works services of the company include reinforced concrete works which include steel reinforcement works, formwork erection and concrete works, and Precast installation works while the Wet architectural works services include Masonry building works; Plastering and screeding works; Tiling works and Waterproofing works.
67GF Score
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