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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 %. PT Arkora Hydro Tbk's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.13%.
As of today (2026-07-26), PT Arkora Hydro Tbk's WACC % is 20.21%. PT Arkora Hydro Tbk's ROC % is 0.28% (calculated using TTM income statement data).
PT Arkora Hydro Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.
PT Arkora Hydro Tbk (ISX:ARKO) 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, PT Arkora Hydro Tbk's WACC % is 20.21%. PT Arkora Hydro Tbk's ROC % is 0.28% (calculated using TTM income statement data).
PT Arkora Hydro Tbk 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.
PT Arkora Hydro Tbk ROC % Related Terms
PT Arkora Hydro Tbk ROC % Historical Data
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The historical data trend for PT Arkora Hydro Tbk's ROC % can be seen below:
* 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 (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.
PT Arkora Hydro Tbk (ISX:ARKO) has a ROC % of 2.13% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on PT Arkora Hydro Tbk and its competitors.
Is PT Arkora Hydro Tbk's ROC % too high?
PT Arkora Hydro Tbk's current ROC % is 2.13%. The Utilities - Independent Power Producers industry median ROC % is 2.26. PT Arkora Hydro Tbk's value of 2.13% is 5.5% below this industry median. Overall, PT Arkora Hydro Tbk has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PT Arkora Hydro Tbk's ROC % compare to competitors?
PT Arkora Hydro Tbk's ROC % of 2.13% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.26. PT Arkora Hydro Tbk's value of 2.13% is 5.5% below 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 - Independent Power Producers company?
The median ROC % among Utilities - Independent Power Producers companies is 2.26, based on 434 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. PT Arkora Hydro Tbk's current ROC % of 2.13% is 5.5% below 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 PT Arkora Hydro Tbk and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Arkora Hydro Tbk's current ROC % is 2.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Arkora Hydro Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Arkora Hydro Tbk (ISX:ARKO) is currently considered Significantly Overvalued. The stock's GF Value™ is Rp1,754.67, compared to a current price of Rp5,700.00 — trading 224.8% above its estimated fair value. The current ROC % is 2.13% and 5.5% below the Utilities - Independent Power Producers industry median of 2.26. PT Arkora Hydro Tbk's overall GF Score™ is 74/100 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 PT Arkora Hydro Tbk (ISX:ARKO), the current ROC % is 2.13% 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 PT Arkora Hydro Tbk (ISX:ARKO) Overvalued in 2026?
Based on GuruFocus' analysis, PT Arkora Hydro Tbk stock appears to be overvalued.
The current stock price of Rp5,700.00 is trading 224.8% above its estimated GF Value™ of Rp1,754.67.
GuruFocus considers PT Arkora Hydro Tbk to be Significantly Overvalued.
Key valuation signals for ISX:ARKO:
ROC %: 2.13%
GF Value™: Rp1,754.67 vs. price of Rp5,700.00 (224.8% above fair value)
Industry Position: 5.5% below the Utilities - Independent Power Producers median
No single metric tells the full story. See the ISX:ARKO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Arkora Hydro Tbk is dedicated to the development and operation of hydropower plants in Indonesia. The company owns and develops hydropower plant facilities that operate in a run-of-river fashion throughout Indonesia. The run-of-river hydropower plant is the type of power plant where little or no water storage is needed. The company's reportable segments are; the 7.4 MW mini hydro powerplant in Cikopo (West Java), the 10 MW mini hydro power plant in Tomasa (Sulawesi Tengah), the 10 MW minihydro electric power plant in Yaentu (Central Sulawesi), the 5.4 MW minihydro electric power plant in Kukusan (Lampung), and the 10 MW minihydro electric power plant in Tomoni (Sulawesi Selatan), and other construction services.
74GF Score
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