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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 %. Progressive Path Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.96%.
As of today (2026-08-11), Progressive Path Group Holdings's WACC % is 6.79%. Progressive Path Group Holdings's ROC % is 2.59% (calculated using TTM income statement data).
Progressive Path Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Progressive Path Group Holdings (HKSE:01581) 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, Progressive Path Group Holdings's WACC % is 6.79%. Progressive Path Group Holdings's ROC % is 2.59% (calculated using TTM income statement data).
Progressive Path Group 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.
Progressive Path Group Holdings ROC % Related Terms
Progressive Path Group Holdings 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 (Mar. 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.
Progressive Path Group Holdings (HKSE:01581) has a ROC % of 2.96% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Progressive Path Group Holdings and its competitors.
Is Progressive Path Group Holdings' ROC % too high?
Progressive Path Group Holdings' current ROC % is 2.96%. The Business Services industry median ROC % is 6.11. Progressive Path Group Holdings' value of 2.96% is 51.6% below this industry median. Overall, Progressive Path Group Holdings has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Progressive Path Group Holdings' ROC % compare to URI and SUNB?
Progressive Path Group Holdings' ROC % of 2.96% can be compared against companies in the Business Services industry. The industry median ROC % is 6.11. Progressive Path Group Holdings' value of 2.96% is 51.6% below 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 Business Services company?
The median ROC % among Business Services companies is 6.11, based on 1,072 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. Progressive Path Group Holdings's current ROC % of 2.96% is 51.6% below 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 Progressive Path Group Holdings and its competitors. For the Business Services industry, the median ROC % is 6.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progressive Path Group Holdings's current ROC % is 2.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Progressive Path Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Progressive Path Group Holdings (HKSE:01581) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.18, compared to a current price of HK$0.33 — trading 83.3% above its estimated fair value. The current ROC % is 2.96% and 51.6% below the Business Services industry median of 6.11. Progressive Path Group Holdings' overall GF Score™ is 54/100 with 3 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 Progressive Path Group Holdings (HKSE:01581), the current ROC % is 2.96% as of Mar. 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 Progressive Path Group Holdings (HKSE:01581) Overvalued in 2026?
Based on GuruFocus' analysis, Progressive Path Group Holdings stock appears to be overvalued.
The current stock price of HK$0.33 is trading 83.3% above its estimated GF Value™ of HK$0.18.
GuruFocus considers Progressive Path Group Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01581:
ROC %: 2.96%
GF Value™: HK$0.18 vs. price of HK$0.33 (83.3% above fair value)
Industry Position: 51.6% below the Business Services median
No single metric tells the full story. See the HKSE:01581 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Progressive Path Group Holdings Ltd is engaged in construction engineering work and the provision of construction machinery rental services in Hong Kong. Its construction machinery rental services represent the rental of construction machines and construction vehicles to customers, and the provision of machine operators and transportation services as part of its one-stop construction machinery rental services. Its construction works represent the construction projects undertaken, the nature of which are broadly classified as foundation and site formation works, and builder's work and general building works. Its segments are Construction works and Construction Machinery Rental. Majority of the revenue is derived from the Construction works segment.
54GF Score
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