ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. DOWA Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 10.59%.
As of today (2026-06-28), DOWA Holdings Co's WACC % is 5.59%. DOWA Holdings Co's ROC % is 4.69% (calculated using TTM income statement data).
DOWA Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
DOWA Holdings Co (NGO:5714) 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, DOWA Holdings Co's WACC % is 5.59%. DOWA Holdings Co's ROC % is 4.69% (calculated using TTM income statement data).
DOWA Holdings Co 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.
DOWA Holdings Co ROC % Related Terms
DOWA Holdings Co ROC % Historical Data
* Premium members only.
The historical data trend for DOWA Holdings 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 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.
DOWA Holdings Co (NGO:5714) has a ROC % of 10.59% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on DOWA Holdings Co and its competitors.
Is DOWA Holdings Co's ROC % too high?
DOWA Holdings Co's current ROC % is 10.59%. Overall, DOWA Holdings Co has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does DOWA Holdings Co's ROC % compare to competitors?
DOWA Holdings Co's ROC % of 10.59% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 DOWA Holdings Co and its competitors. DOWA Holdings Co's current ROC % is 10.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DOWA Holdings Co stock overvalued right now?
DOWA Holdings Co (NGO:5714) has a current ROC % of 10.59%. The stock's GF Value™ is 円2,849.35, compared to a current price of 円4,570.00 — trading 60.4% above its estimated fair value. The current ROC % is 10.59%. DOWA Holdings Co's overall GF Score™ is 76/100 with 3 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 DOWA Holdings Co (NGO:5714), the current ROC % is 10.59% 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 DOWA Holdings Co (NGO:5714) Overvalued in 2026?
Based on GuruFocus' analysis, DOWA Holdings Co stock appears to be overvalued.
The current stock price of 円4,570.00 is trading 60.4% above its estimated GF Value™ of 円2,849.35.
Key valuation signals for NGO:5714:
ROC %: 10.59%
GF Value™: 円2,849.35 vs. price of 円4,570.00 (60.4% above fair value)
No single metric tells the full story. See the NGO:5714 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DOWA Holdings Co Ltd is a Japanese conglomerate engaged in electronic materials, recycling, heat treatment, metal processing, and smelting businesses. The company operates five business segments. The Electronic Materials segment makes high-purity metals, semiconductor wafers, LEDs, batteries, and magnetic materials. The Environment/Recycling segment handles waste disposal, soil remediation, resource recovery, and logistics. The Heat Treatment segment provides metal surface treatment, processing equipment, and related services. The Metal Processing segment produces copper, brass, alloys, and circuit boards. The Smelting segment manufactures metals and chemicals, while Others covers real estate, construction, and technology. It generates the majority of its revenue from the Smelting segment.
76GF Score
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