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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 %. ECI Technology Holdings's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 15.01%.
As of today (2026-08-13), ECI Technology Holdings's WACC % is 4.83%. ECI Technology Holdings's ROC % is 5.06% (calculated using TTM income statement data).
ECI Technology 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.
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, ECI Technology Holdings's WACC % is 4.83%. ECI Technology Holdings's ROC % is 5.06% (calculated using TTM income statement data).
ECI Technology 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 (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.
ECI Technology Holdings (HKSE:08013) has a ROC % of 15.01% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ECI Technology Holdings and its competitors.
Is ECI Technology Holdings' ROC % too high?
ECI Technology Holdings' current ROC % is 15.01%. The Business Services industry median ROC % is 6.08. ECI Technology Holdings' value of 15.01% is 146.9% above this industry median.
How does ECI Technology Holdings' ROC % compare to CTAS and CPRT?
ECI Technology Holdings' ROC % of 15.01% can be compared against companies in the Business Services industry. The industry median ROC % is 6.08. ECI Technology Holdings' value of 15.01% is 146.9% 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 Business Services company?
The median ROC % among Business Services companies is 6.08, based on 1,073 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. ECI Technology Holdings's current ROC % of 15.01% is 146.9% 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 ECI Technology Holdings and its competitors. For the Business Services industry, the median ROC % is 6.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ECI Technology Holdings's current ROC % is 15.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ECI Technology Holdings stock overvalued right now?
Based on GuruFocus' analysis, ECI Technology Holdings (HKSE:08013) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.06, compared to a current price of HK$0.06 — trading 6.7% above its estimated fair value. The current ROC % is 15.01% and 146.9% above the Business Services industry median of 6.08. 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 ECI Technology Holdings (HKSE:08013), the current ROC % is 15.01% 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.
ECI Technology Holdings Ltd provides ELV solutions in Hong Kong, including CCTV, fire alarm, public address, audio/video, access control, car park and clubhouse management systems. Its solutions cover LoRa next-generation wireless transmission technology, car charging systems, IoT and AI systems, closed-circuit television, license plate recognition, communication broadcasting, security systems and services, public ticketing and visitor systems, and the Octopus Parking System. The Group offers consultation, design, integration, implementation and maintenance services for private and public sector clients. Its operating and reportable segments are installation and maintenance services, generating the majority of revenue, security guarding services, and electric vehicle charging operation.
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