Europtronic Group (SGX:E23) ROC %: -3.75% (As of Sep. 2017)

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What is Europtronic Group ROC %?

Europtronic Group SGX:E23 ROC % is -3.75% as of Sep. 2017. The stock has 2 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Europtronic Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2017 was -3.75%.

As of today (2026-08-09), Europtronic Group's WACC % is 4.96%. Europtronic Group's ROC % is 16.67% (calculated using TTM income statement data). Europtronic Group 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.


Europtronic Group  (SGX:E23) 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, Europtronic Group's WACC % is 4.96%. Europtronic Group's ROC % is 16.67% (calculated using TTM income statement data). Europtronic Group 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.


Europtronic Group ROC % Related Terms


Europtronic Group ROC % Historical Data

* Premium members only.

The historical data trend for Europtronic 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.

Europtronic Group ROC % Chart

Europtronic Group Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -13.20 -7.29 -8.73 -3.71 -5.37

Europtronic Group Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.72 10.14 -3.14 -5.99 -3.75

Europtronic Group ROC % Calculation

Europtronic Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

ROC % (A: Dec. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2015 ) + Invested Capital (A: Dec. 2016 ))/ count )
=-3.848 * ( 1 - 0% )/( (90.281 + 53.042)/ 2 )
=-3.848/71.6615
=-5.37 %

where

Europtronic Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2017 is calculated as:

ROC % (Q: Sep. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2017 ) + Invested Capital (Q: Sep. 2017 ))/ count )
=-1.5 * ( 1 - 0% )/( (40.409 + 39.507)/ 2 )
=-1.5/39.958
=-3.75 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2017) 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -3.75% mean?
Europtronic Group (SGX:E23) has a ROC % of -3.75% as of Sep. 2017. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Europtronic Group and its competitors.
Is Europtronic Group's ROC % too high?
Europtronic Group's current ROC % is -3.75%.
How does Europtronic Group's ROC % compare to competitors?
Europtronic Group's ROC % of -3.75% can be compared against companies in the Hardware industry. The industry median ROC % is 4.24. 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 Hardware company?
The median ROC % among Hardware companies is 4.24, based on 2,441 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 Europtronic Group and its competitors. For the Hardware industry, the median ROC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Europtronic Group's current ROC % is -3.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Europtronic Group stock overvalued right now?
Europtronic Group (SGX:E23) has a current ROC % of -3.75%. The current ROC % is -3.75%. 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 Europtronic Group (SGX:E23), the current ROC % is -3.75% as of Sep. 2017. 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.

Europtronic Group Business Description

Europtronic Group Ltd is a China-based investment holding company. The company is primarily engaged in production, distribution, and marketing of electronic components. The Company operates in two segments namely, Manufacturing segment comprises of producing of film capacitors, interference suppression capacitors (X2), snubber capacitors, DC Link capacitors and AC capacitors which also contributes a major part of revenue; and Distribution segment distributes other active and passive components, such as fuses, resistors, capacitors, inductors, crystals, opto-devices, liquid crystal display (LCD) panels and other related products. Most of its revenue is earned through the China market while it also has a presence in Singapore, Taiwan, and Hong Kong market.