ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kansai Electric Power Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.48%.
As of today (2026-06-25), Kansai Electric Power Co's WACC % is 2.32%. Kansai Electric Power Co's ROC % is 3.54% (calculated using TTM income statement data).
Kansai Electric Power Co 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.
Kansai Electric Power Co (OTCPK:KAEPF) 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, Kansai Electric Power Co's WACC % is 2.32%. Kansai Electric Power Co's ROC % is 3.54% (calculated using TTM income statement data).
Kansai Electric Power Co 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 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.
Kansai Electric Power Co (KAEPF) has a ROC % of 1.48% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kansai Electric Power Co and its competitors.
Is Kansai Electric Power Co's ROC % too high?
Kansai Electric Power Co's current ROC % is 1.48%. The Utilities - Independent Power Producers industry median ROC % is 2.27. Kansai Electric Power Co's value of 1.48% is 34.7% below this industry median. Overall, Kansai Electric Power Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kansai Electric Power Co's ROC % compare to competitors?
Kansai Electric Power Co's ROC % of 1.48% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.27. Kansai Electric Power Co's value of 1.48% is 34.7% 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 2.27, based on 430 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. Kansai Electric Power Co's current ROC % of 1.48% is 34.7% 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 Kansai Electric Power Co and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kansai Electric Power Co's current ROC % is 1.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kansai Electric Power Co stock overvalued right now?
Based on GuruFocus' analysis, Kansai Electric Power Co (KAEPF) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.57, compared to a current price of $14.65 — trading 38.6% above its estimated fair value. The current ROC % is 1.48% and 34.7% below the Utilities - Independent Power Producers industry median of 2.27. Kansai Electric Power Co's overall GF Score™ is 65/100 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 Kansai Electric Power Co (KAEPF), the current ROC % is 1.48% 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 Kansai Electric Power Co (KAEPF) Overvalued in 2026?
Based on GuruFocus' analysis, Kansai Electric Power Co stock appears to be overvalued.
The current stock price of $14.65 is trading 38.6% above its estimated GF Value™ of $10.57.
GuruFocus considers Kansai Electric Power Co to be Significantly Overvalued.
Key valuation signals for KAEPF:
ROC %: 1.48%
GF Value™: $10.57 vs. price of $14.65 (38.6% above fair value)
Industry Position: 34.7% below the Utilities - Independent Power Producers median
No single metric tells the full story. See the KAEPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kansai Electric Power Co Inc is a Japan-based company that provides energy and information technology solutions. The company operates in four business segments. The Energy segment offers electricity, gas, and utility solutions. The Information and Communications segment provides comprehensive communication services. The Lifestyle/Business Solutions segment delivers consumer and business-related services. The Power Transmission and Distribution segment ensures a safe and reliable electricity supply from a neutral and fair standpoint. It generates the majority of its revenue from the Energy business segment.
65GF Score
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