ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hiap Tong's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.48%.
As of today (2026-07-02), Hiap Tong's WACC % is 8.14%. Hiap Tong's ROC % is 1.67% (calculated using TTM income statement data).
Hiap Tong earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hiap Tong (SGX:5PO) 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, Hiap Tong's WACC % is 8.14%. Hiap Tong's ROC % is 1.67% (calculated using TTM income statement data).
Hiap Tong 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.
Hiap Tong ROC % Related Terms
Hiap Tong ROC % Historical Data
* Premium members only.
The historical data trend for Hiap Tong'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 (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.
Hiap Tong (SGX:5PO) 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 Hiap Tong and its competitors.
Is Hiap Tong's ROC % too high?
Hiap Tong's current ROC % is 1.48%. The Business Services industry median ROC % is 5.99. Hiap Tong's value of 1.48% is 75.3% below this industry median. Overall, Hiap Tong has a GF Score™ of 48/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hiap Tong's ROC % compare to URI and SUNB?
Hiap Tong's ROC % of 1.48% can be compared against companies in the Business Services industry. The industry median ROC % is 5.99. Hiap Tong's value of 1.48% is 75.3% 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 a Business Services company?
The median ROC % among Business Services companies is 5.99, based on 1,075 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. Hiap Tong's current ROC % of 1.48% is 75.3% 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 Hiap Tong and its competitors. For the Business Services industry, the median ROC % is 5.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hiap Tong'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 Hiap Tong stock overvalued right now?
Based on GuruFocus' analysis, Hiap Tong (SGX:5PO) is currently considered Modestly Overvalued. The stock's GF Value™ is S$0.09, compared to a current price of S$0.11 — trading 20% above its estimated fair value. The current ROC % is 1.48% and 75.3% below the Business Services industry median of 5.99. Hiap Tong's overall GF Score™ is 48/100 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 Hiap Tong (SGX:5PO), 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 Hiap Tong (SGX:5PO) Overvalued in 2026?
Based on GuruFocus' analysis, Hiap Tong stock appears to be overvalued.
The current stock price of S$0.11 is trading 20% above its estimated GF Value™ of S$0.09.
GuruFocus considers Hiap Tong to be Modestly Overvalued.
Key valuation signals for SGX:5PO:
ROC %: 1.48%
GF Value™: S$0.09 vs. price of S$0.11 (20% above fair value)
Industry Position: 75.3% below the Business Services median
No single metric tells the full story. See the SGX:5PO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hiap Tong Corp Ltd is mainly involved in renting cranes, prime movers, heavy machinery, and equipment and trading cranes and heavy equipment. The company's products are used by the marine, petrochemical, and construction industries. It operates in two segments namely lifting and haulage services, and manpower services. The company also provides load test and drop test services for marine offshore and engineering industries. Its geographical segments include Singapore and Malaysia, of which the majority of the revenue comes from Singapore.
48GF Score
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