ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Luk Fook Holdings (International)'s annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 11.37%.
As of today (2026-06-26), Luk Fook Holdings (International)'s WACC % is 8.27%. Luk Fook Holdings (International)'s ROC % is 11.93% (calculated using TTM income statement data).
Luk Fook Holdings (International) 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.
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, Luk Fook Holdings (International)'s WACC % is 8.27%. Luk Fook Holdings (International)'s ROC % is 11.93% (calculated using TTM income statement data).
Luk Fook Holdings (International) 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.
Luk Fook Holdings (International) ROC % Related Terms
Luk Fook Holdings (International) 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.
Luk Fook Holdings (International) (LKFLF) has a ROC % of 11.37% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Luk Fook Holdings (International) and its competitors.
Is Luk Fook Holdings (International)'s ROC % too high?
Luk Fook Holdings (International)'s current ROC % is 11.37%. The Retail - Cyclical industry median ROC % is 4.37. Luk Fook Holdings (International)'s value of 11.37% is 160.2% above this industry median. Overall, Luk Fook Holdings (International) has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luk Fook Holdings (International)'s ROC % compare to TPR?
Luk Fook Holdings (International)'s ROC % of 11.37% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.37. Luk Fook Holdings (International)'s value of 11.37% is 160.2% 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 Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.37, based on 1,113 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. Luk Fook Holdings (International)'s current ROC % of 11.37% is 160.2% 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 Luk Fook Holdings (International) and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luk Fook Holdings (International)'s current ROC % is 11.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luk Fook Holdings (International) stock overvalued right now?
Based on GuruFocus' analysis, Luk Fook Holdings (International) (LKFLF) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.43, compared to a current price of $2.95 — trading 14% below its estimated fair value. The current ROC % is 11.37% and 160.2% above the Retail - Cyclical industry median of 4.37. Luk Fook Holdings (International)'s overall GF Score™ is 90/100. 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 Luk Fook Holdings (International) (LKFLF), the current ROC % is 11.37% 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 Luk Fook Holdings (International) (LKFLF) Overvalued in 2026?
Based on GuruFocus' analysis, Luk Fook Holdings (International) stock appears to be undervalued.
The current stock price of $2.95 is trading 14% below its estimated GF Value™ of $3.43.
GuruFocus considers Luk Fook Holdings (International) to be Modestly Undervalued.
Key valuation signals for LKFLF:
ROC %: 11.37%
GF Value™: $3.43 vs. price of $2.95 (14% below fair value)
Industry Position: 160.2% above the Retail - Cyclical median
No single metric tells the full story. See the LKFLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luk Fook Holdings (International) Business Description
Luk Fook Holdings (International) Ltd is a Hong Kong-based investment holding company. The company is engaged in the sourcing, designing, wholesaling, trademark licensing and retailing of a variety of gold and platinum jewelry and gem-set jewelry products. It operates through the following five segments: Retailing in Hong Kong, Macau and Overseas; Retailing in Mainland China; Wholesaling in Hong Kong; Wholesaling in Mainland China; and Licensing. The company generates maximum revenue from Retailing in Hong Kong, Macau and Overseas segments.
90GF Score
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