ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tsogo Sun's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 11.29%.
As of today (2026-06-26), Tsogo Sun's WACC % is 8.24%. Tsogo Sun's ROC % is 11.17% (calculated using TTM income statement data).
Tsogo Sun 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.
Tsogo Sun (JSE:TSG) 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, Tsogo Sun's WACC % is 8.24%. Tsogo Sun's ROC % is 11.17% (calculated using TTM income statement data).
Tsogo Sun 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.
Tsogo Sun ROC % Related Terms
Tsogo Sun ROC % Historical Data
* Premium members only.
The historical data trend for Tsogo Sun'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 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.
Tsogo Sun (JSE:TSG) has a ROC % of 11.29% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tsogo Sun and its competitors.
Is Tsogo Sun's ROC % too high?
Tsogo Sun's current ROC % is 11.29%. The Travel & Leisure industry median ROC % is 3.76. Tsogo Sun's value of 11.29% is 200.3% above this industry median. Overall, Tsogo Sun has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tsogo Sun's ROC % compare to LVS and MGM?
Tsogo Sun's ROC % of 11.29% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.76. Tsogo Sun's value of 11.29% is 200.3% 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 a Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.76, based on 834 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. Tsogo Sun's current ROC % of 11.29% is 200.3% 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 Tsogo Sun and its competitors. For the Travel & Leisure industry, the median ROC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tsogo Sun's current ROC % is 11.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tsogo Sun stock overvalued right now?
Based on GuruFocus' analysis, Tsogo Sun (JSE:TSG) is currently considered Modestly Undervalued. The stock's GF Value™ is R10.61, compared to a current price of R7.67 — trading 27.7% below its estimated fair value. The current ROC % is 11.29% and 200.3% above the Travel & Leisure industry median of 3.76. Tsogo Sun's overall GF Score™ is 78/100 with 4 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 Tsogo Sun (JSE:TSG), the current ROC % is 11.29% 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 Tsogo Sun (JSE:TSG) Overvalued in 2026?
Based on GuruFocus' analysis, Tsogo Sun stock appears to be undervalued.
The current stock price of R7.67 is trading 27.7% below its estimated GF Value™ of R10.61.
GuruFocus considers Tsogo Sun to be Modestly Undervalued.
Key valuation signals for JSE:TSG:
ROC %: 11.29%
GF Value™: R10.61 vs. price of R7.67 (27.7% below fair value)
Industry Position: 200.3% above the Travel & Leisure median
No single metric tells the full story. See the JSE:TSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tsogo Sun Ltd is engaged principally in the gaming, entertainment, and hospitality industry operating in South Africa. It owns and operates casino and entertainment destinations in South Africa, hotels, Galaxy Bingo sites, VSlots limited payout machines, playTSOGO, Bet.co.za, a Theme Park, theatres, cinemas, restaurants, bars, and conference facilities. The company's operating segments are; Casinos, LPMs, Other gaming and betting, and Corporate. Maximum revenue for the company is derived from its Casinos segment.
78GF Score
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