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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 %. Tak Lee Machinery Holdings's annualized return on capital (ROC %) for the quarter that ended in Jan. 2026 was 7.08%.
As of today (2026-08-09), Tak Lee Machinery Holdings's WACC % is 3.17%. Tak Lee Machinery Holdings's ROC % is 6.94% (calculated using TTM income statement data).
Tak Lee Machinery 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.
Tak Lee Machinery Holdings (HKSE:02102) 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, Tak Lee Machinery Holdings's WACC % is 3.17%. Tak Lee Machinery Holdings's ROC % is 6.94% (calculated using TTM income statement data).
Tak Lee Machinery 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.
* 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 (Jan. 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.
Tak Lee Machinery Holdings (HKSE:02102) has a ROC % of 7.08% as of Jan. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tak Lee Machinery Holdings and its competitors.
Is Tak Lee Machinery Holdings' ROC % too high?
Tak Lee Machinery Holdings' current ROC % is 7.08%. The Farm & Heavy Construction Machinery industry median ROC % is 5.58. Tak Lee Machinery Holdings' value of 7.08% is 26.9% above this industry median. Overall, Tak Lee Machinery Holdings has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tak Lee Machinery Holdings' ROC % compare to CAT and DE?
Tak Lee Machinery Holdings' ROC % of 7.08% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROC % is 5.58. Tak Lee Machinery Holdings' value of 7.08% is 26.9% 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 Farm & Heavy Construction Machinery company?
The median ROC % among Farm & Heavy Construction Machinery companies is 5.58, based on 207 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. Tak Lee Machinery Holdings's current ROC % of 7.08% is 26.9% 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 Tak Lee Machinery Holdings and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROC % is 5.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tak Lee Machinery Holdings's current ROC % is 7.08%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tak Lee Machinery Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tak Lee Machinery Holdings (HKSE:02102) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.30 — trading 76.5% above its estimated fair value. The current ROC % is 7.08% and 26.9% above the Farm & Heavy Construction Machinery industry median of 5.58. Tak Lee Machinery Holdings' overall GF Score™ is 50/100 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 Tak Lee Machinery Holdings (HKSE:02102), the current ROC % is 7.08% as of Jan. 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 Tak Lee Machinery Holdings (HKSE:02102) Overvalued in 2026?
Based on GuruFocus' analysis, Tak Lee Machinery Holdings stock appears to be overvalued.
The current stock price of HK$0.30 is trading 76.5% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Tak Lee Machinery Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02102:
ROC %: 7.08%
GF Value™: HK$0.17 vs. price of HK$0.30 (76.5% above fair value)
Industry Position: 26.9% above the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the HKSE:02102 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tak Lee Machinery Holdings Ltd is an earthmoving equipment sales and leasing service provider. The Group has three operating segments: Sales of heavy equipment and spare parts, which involves trading heavy equipment and spare parts in Hong Kong; Lease of heavy equipment, which covers the leasing of heavy equipment and the provision of machine operators in Hong Kong; and Repair, logistics, and other ancillary services, which include repair and logistics support in Hong Kong. The Group generates the majority of revenue from the Sales of heavy equipment and spare parts segment. Geographically, it derives its revenue from Hong Kong.
50GF Score
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