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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 %. Mega Fortune Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 19.41%.
As of today (2026-07-24), Mega Fortune Co's WACC % is 10.66%. Mega Fortune Co's ROC % is 26.98% (calculated using TTM income statement data).
Mega Fortune 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.
Mega Fortune Co (NAS:MGRT) 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, Mega Fortune Co's WACC % is 10.66%. Mega Fortune Co's ROC % is 26.98% (calculated using TTM income statement data).
Mega Fortune 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.
Mega Fortune Co ROC % Related Terms
Mega Fortune Co ROC % Historical Data
* Premium members only.
The historical data trend for Mega Fortune Co'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 (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.
Mega Fortune Co (MGRT) has a ROC % of 19.41% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Mega Fortune Co and its competitors.
Is Mega Fortune Co's ROC % too high?
Mega Fortune Co's current ROC % is 19.41%. The Software industry median ROC % is 3.20. Mega Fortune Co's value of 19.41% is 506.6% above this industry median. Overall, Mega Fortune Co has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Mega Fortune Co's ROC % compare to VYX and GLOB?
Mega Fortune Co's ROC % of 19.41% can be compared against companies in the Software industry. The industry median ROC % is 3.20. Mega Fortune Co's value of 19.41% is 506.6% 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 Software company?
The median ROC % among Software companies is 3.20, based on 2,833 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. Mega Fortune Co's current ROC % of 19.41% is 506.6% 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 Mega Fortune Co and its competitors. For the Software industry, the median ROC % is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mega Fortune Co's current ROC % is 19.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mega Fortune Co stock overvalued right now?
Mega Fortune Co (MGRT) has a current ROC % of 19.41%. The current ROC % is 19.41% and 506.6% above the Software industry median of 3.20. Mega Fortune Co's overall GF Score™ is 24/100 with 1 warning sign 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 Mega Fortune Co (MGRT), the current ROC % is 19.41% 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.
Mega Fortune Co Ltd is an Internet of Things (IoT) solution provider in Hong Kong. Through its IoT platform, tools, and services, it helps enterprises with their digital transformation, launch IoT initiatives, scale up an existing IoT application, or integrate any IoT solution. The Company has specialized in delivering comprehensive IoT solutions and services across various industries. Its vision is to become the preferred choice for enterprise and project IoT solutions across the Asia-Pacific region.
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