ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Bright Smart Securitiesmmodities Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 8.38%.
As of today (2026-07-12), Bright Smart Securitiesmmodities Group's WACC % is 6.49%. Bright Smart Securitiesmmodities Group's ROC % is 8.18% (calculated using TTM income statement data).
Bright Smart Securitiesmmodities Group 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.
Bright Smart Securitiesmmodities Group (HKSE:01428) 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, Bright Smart Securitiesmmodities Group's WACC % is 6.49%. Bright Smart Securitiesmmodities Group's ROC % is 8.18% (calculated using TTM income statement data).
Bright Smart Securitiesmmodities Group 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.
Bright Smart Securitiesmmodities Group ROC % Related Terms
Bright Smart Securitiesmmodities Group 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.
Bright Smart Securitiesmmodities Group ROC % Chart
Bright Smart Securitiesmmodities Group Annual Data
Note:
The Operating Income data used here is two times the semi-annual (Sep. 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.
Bright Smart Securitiesmmodities Group (HKSE:01428) has a ROC % of 8.38% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Bright Smart Securitiesmmodities Group and its competitors.
Is Bright Smart Securitiesmmodities Group's ROC % too high?
Bright Smart Securitiesmmodities Group's current ROC % is 8.38%. The Capital Markets industry median ROC % is 1.34. Bright Smart Securitiesmmodities Group's value of 8.38% is 527.7% above this industry median. Overall, Bright Smart Securitiesmmodities Group has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bright Smart Securitiesmmodities Group's ROC % compare to MS and GS?
Bright Smart Securitiesmmodities Group's ROC % of 8.38% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.34. Bright Smart Securitiesmmodities Group's value of 8.38% is 527.7% 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 Capital Markets company?
The median ROC % among Capital Markets companies is 1.34, based on 698 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. Bright Smart Securitiesmmodities Group's current ROC % of 8.38% is 527.7% 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 Bright Smart Securitiesmmodities Group and its competitors. For the Capital Markets industry, the median ROC % is 1.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bright Smart Securitiesmmodities Group's current ROC % is 8.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bright Smart Securitiesmmodities Group stock overvalued right now?
Based on GuruFocus' analysis, Bright Smart Securitiesmmodities Group (HKSE:01428) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$2.28, compared to a current price of HK$7.05 — trading 209.2% above its estimated fair value. The current ROC % is 8.38% and 527.7% above the Capital Markets industry median of 1.34. Bright Smart Securitiesmmodities Group's overall GF Score™ is 51/100 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 Bright Smart Securitiesmmodities Group (HKSE:01428), the current ROC % is 8.38% as of Sep. 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 Bright Smart Securitiesmmodities Group (HKSE:01428) Overvalued in 2026?
Based on GuruFocus' analysis, Bright Smart Securitiesmmodities Group stock appears to be overvalued.
The current stock price of HK$7.05 is trading 209.2% above its estimated GF Value™ of HK$2.28.
GuruFocus considers Bright Smart Securitiesmmodities Group to be Significantly Overvalued.
Key valuation signals for HKSE:01428:
ROC %: 8.38%
GF Value™: HK$2.28 vs. price of HK$7.05 (209.2% above fair value)
Industry Position: 527.7% above the Capital Markets median
No single metric tells the full story. See the HKSE:01428 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bright Smart Securitiesmmodities Group Business Description
Bright Smart Securities & Commodities Group Ltd is a company that provides financial services, including securities broking, margin financing, commodities & futures broking, bullion trading and leveraged foreign exchange trading. The company operates via three segments. The Securities broking segment offers broking services in securities traded in Hong Kong and select overseas markets and provides margin financing services to its broking customers. The Commodities and futures broking segment offers broking services in commodities and futures contracts traded in Hong Kong and overseas markets. The Bullion trading segment provides trading services in bullion contracts traded overseas. The company generates majority of its revenue from the Securities broking segment.
51GF Score
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