ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Echo International Holdings Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was -16.41%.
As of today (2026-07-08), Echo International Holdings Group's WACC % is 8.63%. Echo International Holdings Group's ROC % is -17.53% (calculated using TTM income statement data).
Echo International Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Echo International Holdings Group (HKSE:08218) 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, Echo International Holdings Group's WACC % is 8.63%. Echo International Holdings Group's ROC % is -17.53% (calculated using TTM income statement data).
Echo International Holdings 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.
Echo International Holdings Group ROC % Related Terms
Echo International Holdings 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.
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.
Echo International Holdings Group (HKSE:08218) has a ROC % of -16.41% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Echo International Holdings Group and its competitors.
Is Echo International Holdings Group's ROC % too high?
Echo International Holdings Group's current ROC % is -16.41%. Overall, Echo International Holdings Group has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Echo International Holdings Group's ROC % compare to COHR and KEYS?
Echo International Holdings Group's ROC % of -16.41% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,443 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. 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 Echo International Holdings Group and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Echo International Holdings Group's current ROC % is -16.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Echo International Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Echo International Holdings Group (HKSE:08218) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.11 — trading 51.4% above its estimated fair value. The current ROC % is -16.41%. Echo International Holdings Group's overall GF Score™ is 39/100 with 5 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 Echo International Holdings Group (HKSE:08218), the current ROC % is -16.41% 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 Echo International Holdings Group (HKSE:08218) Overvalued in 2026?
Based on GuruFocus' analysis, Echo International Holdings Group stock appears to be overvalued.
The current stock price of HK$0.11 is trading 51.4% above its estimated GF Value™ of HK$0.07.
GuruFocus considers Echo International Holdings Group to be Significantly Overvalued.
Key valuation signals for HKSE:08218:
ROC %: -16.41%
GF Value™: HK$0.07 vs. price of HK$0.11 (51.4% above fair value)
No single metric tells the full story. See the HKSE:08218 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Echo International Holdings Group Business Description
Echo International Holdings Group Ltd is an investment holding company. Its operating segments include trading of electronic products, manufacturing and trading of electronic products and accessories, provision of food catering services, and trading of timepieces. The company generates the majority of its revenue from the sale of electronic products and accessories. The Group also provides one-stop complete electronic product manufacturing and assembly services, including products such as security alarms, buzzers, fire alarms, massage toners, fishing indicators, and communicators. It operates in Hong Kong, Asian countries, European countries, North and South America, Australia, and other regions, with the majority of revenue derived from European countries.
39GF Score
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