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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 %. SDM Education Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -2.71%.
As of today (2026-09-03), SDM Education Group Holdings's WACC % is 0.00%. SDM Education Group Holdings's ROC % is 0.00% (calculated using TTM income statement data).
SDM Education Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SDM Education Group Holdings (HKSE:08363) 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, SDM Education Group Holdings's WACC % is 0.00%. SDM Education Group Holdings's ROC % is 0.00% (calculated using TTM income statement data).
SDM Education 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.
SDM Education Group Holdings ROC % Related Terms
SDM Education 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 four times the quarterly (Sep. 2023) 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.
SDM Education Group Holdings (HKSE:08363) has a ROC % of -2.71% as of Sep. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SDM Education Group Holdings and its competitors.
Is SDM Education Group Holdings' ROC % too high?
SDM Education Group Holdings' current ROC % is -2.71%. Overall, SDM Education Group Holdings has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does SDM Education Group Holdings' ROC % compare to AIU and EDU?
SDM Education Group Holdings' ROC % of -2.71% can be compared against companies in the Education industry. The industry median ROC % is 5.14. 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 Education company?
The median ROC % among Education companies is 5.14, based on 260 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 SDM Education Group Holdings and its competitors. For the Education industry, the median ROC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SDM Education Group Holdings's current ROC % is -2.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SDM Education Group Holdings stock overvalued right now?
SDM Education Group Holdings (HKSE:08363) has a current ROC % of -2.71%. The current ROC % is -2.71%. SDM Education Group Holdings' overall GF Score™ is 4/100. 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 SDM Education Group Holdings (HKSE:08363), the current ROC % is -2.71% as of Sep. 2023. 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.
SDM Education Group Holdings Ltd is engaged in the business of jazz and ballet and pop dance academy in Hong Kong and childcare services in Singapore. The operating segments of the group are the Dance academy business which involves jazz and ballet and pop dance academy in Hong Kong and the PRC and the Early childhood education business involving the operation of kindergartens and pre-schools in Hong Kong and Singapore and the Others segment. Geographically, the group has a business presence in Hong Kong and Singapore, of which key revenue is derived from Hong Kong.
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