ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Global Strategic Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.31%.
As of today (2026-07-08), Global Strategic Group's WACC % is 5.77%. Global Strategic Group's ROC % is 4.72% (calculated using TTM income statement data).
Global Strategic Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Global Strategic Group (HKSE:08007) 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, Global Strategic Group's WACC % is 5.77%. Global Strategic Group's ROC % is 4.72% (calculated using TTM income statement data).
Global Strategic Group 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.
* 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.
Global Strategic Group (HKSE:08007) has a ROC % of 8.31% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Global Strategic Group and its competitors.
Is Global Strategic Group's ROC % too high?
Global Strategic Group's current ROC % is 8.31%. The Utilities - Regulated industry median ROC % is 4.17. Global Strategic Group's value of 8.31% is 99.3% above this industry median. Overall, Global Strategic Group has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Global Strategic Group's ROC % compare to ATO and NI?
Global Strategic Group's ROC % of 8.31% can be compared against companies in the Utilities - Regulated industry. The industry median ROC % is 4.17. Global Strategic Group's value of 8.31% is 99.3% 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 an Utilities - Regulated company?
The median ROC % among Utilities - Regulated companies is 4.17, based on 501 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. Global Strategic Group's current ROC % of 8.31% is 99.3% 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 Global Strategic Group and its competitors. For the Utilities - Regulated industry, the median ROC % is 4.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Global Strategic Group's current ROC % is 8.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Global Strategic Group stock overvalued right now?
Based on GuruFocus' analysis, Global Strategic Group (HKSE:08007) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.30, compared to a current price of HK$0.42 — trading 40% above its estimated fair value. The current ROC % is 8.31% and 99.3% above the Utilities - Regulated industry median of 4.17. Global Strategic Group's overall GF Score™ is 41/100 with 8 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 Global Strategic Group (HKSE:08007), the current ROC % is 8.31% 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 Global Strategic Group (HKSE:08007) Overvalued in 2026?
Based on GuruFocus' analysis, Global Strategic Group stock appears to be overvalued.
The current stock price of HK$0.42 is trading 40% above its estimated GF Value™ of HK$0.30.
GuruFocus considers Global Strategic Group to be Significantly Overvalued.
Key valuation signals for HKSE:08007:
ROC %: 8.31%
GF Value™: HK$0.30 vs. price of HK$0.42 (40% above fair value)
Industry Position: 99.3% above the Utilities - Regulated median
No single metric tells the full story. See the HKSE:08007 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Global Strategic Group Ltd is an investment holding company. Through its subsidiaries, the company operates a wide range of businesses, including the natural gas supply and pipeline installation, and provision of leasing business of the steel support axial force servo system in the People's Republic of China (the PRC). The company has two reportable segments as follows: i) Natural gas operations: including investment in natural gas projects, sales of natural gas, natural gas cooking appliance and accessories and pipeline installation, ii) Sales and leasing business: including sales and services rendered from leasing of materials, plant and machinery and technology support. The majority of the company's revenue is derived from the Natural gas operations segment.
41GF Score
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