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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 %. Hong Lai Huat Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -5.28%.
As of today (2026-07-29), Hong Lai Huat Group's WACC % is 15.69%. Hong Lai Huat Group's ROC % is -5.22% (calculated using TTM income statement data).
Hong Lai Huat Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hong Lai Huat Group (SGX:CTO) 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, Hong Lai Huat Group's WACC % is 15.69%. Hong Lai Huat Group's ROC % is -5.22% (calculated using TTM income statement data).
Hong Lai Huat Group 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.
Hong Lai Huat Group ROC % Related Terms
Hong Lai Huat Group ROC % Historical Data
* Premium members only.
The historical data trend for Hong Lai Huat Group'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 (Dec. 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.
Hong Lai Huat Group (SGX:CTO) has a ROC % of -5.28% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hong Lai Huat Group and its competitors.
Is Hong Lai Huat Group's ROC % too high?
Hong Lai Huat Group's current ROC % is -5.28%.
How does Hong Lai Huat Group's ROC % compare to competitors?
Hong Lai Huat Group's ROC % of -5.28% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.15. 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 Real Estate company?
The median ROC % among Real Estate companies is 2.15, based on 1,755 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. 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 Hong Lai Huat Group and its competitors. For the Real Estate industry, the median ROC % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Lai Huat Group's current ROC % is -5.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Lai Huat Group stock overvalued right now?
Hong Lai Huat Group (SGX:CTO) has a current ROC % of -5.28%. The current ROC % is -5.28%. 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 Hong Lai Huat Group (SGX:CTO), the current ROC % is -5.28% as of Dec. 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.
Hong Lai Huat Group Ltd is engaged in property development and real estate division, which is carrying on the business of investment and prime development of commercial and residential properties. It also operates the Marble mining division which carries business of exploration, extraction, processing and sale of marble and other related stone materials. The division includes quarrying activities, production of marble blocks and slabs, and the marketing and distribution of marble products to domestic and international markets. and the others segments, engaged in the business of investment holding generating income from management services provided to related companies and other subsidiaries.
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