ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Megawide Construction's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.72%.
As of today (2026-06-24), Megawide Construction's WACC % is 6.04%. Megawide Construction's ROC % is 3.50% (calculated using TTM income statement data).
Megawide Construction earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Megawide Construction (PHS:MWIDE) 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, Megawide Construction's WACC % is 6.04%. Megawide Construction's ROC % is 3.50% (calculated using TTM income statement data).
Megawide Construction 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.
* 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.
Megawide Construction (PHS:MWIDE) has a ROC % of 3.72% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Megawide Construction and its competitors.
Is Megawide Construction's ROC % too high?
Megawide Construction's current ROC % is 3.72%. The Conglomerates industry median ROC % is 2.82. Megawide Construction's value of 3.72% is 31.9% above this industry median. Overall, Megawide Construction has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Megawide Construction's ROC % compare to HON and MMM?
Megawide Construction's ROC % of 3.72% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.82. Megawide Construction's value of 3.72% is 31.9% 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 Conglomerates company?
The median ROC % among Conglomerates companies is 2.82, based on 552 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. Megawide Construction's current ROC % of 3.72% is 31.9% 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 Megawide Construction and its competitors. For the Conglomerates industry, the median ROC % is 2.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Megawide Construction's current ROC % is 3.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megawide Construction stock overvalued right now?
Based on GuruFocus' analysis, Megawide Construction (PHS:MWIDE) is currently considered Modestly Overvalued. The stock's GF Value™ is ₱3.37, compared to a current price of ₱3.84 — trading 13.9% above its estimated fair value. The current ROC % is 3.72% and 31.9% above the Conglomerates industry median of 2.82. Megawide Construction's overall GF Score™ is 78/100 with 10 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 Megawide Construction (PHS:MWIDE), the current ROC % is 3.72% 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 Megawide Construction (PHS:MWIDE) Overvalued in 2026?
Based on GuruFocus' analysis, Megawide Construction stock appears to be overvalued.
The current stock price of ₱3.84 is trading 13.9% above its estimated GF Value™ of ₱3.37.
GuruFocus considers Megawide Construction to be Modestly Overvalued.
Key valuation signals for PHS:MWIDE:
ROC %: 3.72%
GF Value™: ₱3.37 vs. price of ₱3.84 (13.9% above fair value)
Industry Position: 31.9% above the Conglomerates median
No single metric tells the full story. See the PHS:MWIDE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Megawide Construction Corp is engaged in the general construction business, including constructing, enlarging, repairing, or engaging in any work upon buildings, houses and condominium, roads, plants, bridges, piers, waterworks, railroads and other structures. It performs other allied construction business like the construction and sale of precast items, concrete production, and purchase sale and/or lease of formworks system and construction equipment. The company has three segment Construction operations; Landport operations; Real estate operations. The company generates majority of revenue from Construction operations principally refers to general construction business, including constructing and sale of precast items and concrete production and rental of construction equipment.
78GF Score
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