ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Danang Rubber JSC's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.39%.
As of today (2026-06-28), Danang Rubber JSC's WACC % is 8.22%. Danang Rubber JSC's ROC % is 4.87% (calculated using TTM income statement data).
Danang Rubber JSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Danang Rubber JSC (STC:DRC) 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, Danang Rubber JSC's WACC % is 8.22%. Danang Rubber JSC's ROC % is 4.87% (calculated using TTM income statement data).
Danang Rubber JSC 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.
Danang Rubber JSC ROC % Related Terms
Danang Rubber JSC ROC % Historical Data
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The historical data trend for Danang Rubber JSC'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.
Danang Rubber JSC (STC:DRC) has a ROC % of 3.39% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Danang Rubber JSC and its competitors.
Is Danang Rubber JSC's ROC % too high?
Danang Rubber JSC's current ROC % is 3.39%. The Vehicles & Parts industry median ROC % is 5.09. Danang Rubber JSC's value of 3.39% is 33.4% below this industry median. Overall, Danang Rubber JSC has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Danang Rubber JSC's ROC % compare to ORLY and AZO?
Danang Rubber JSC's ROC % of 3.39% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.09. Danang Rubber JSC's value of 3.39% is 33.4% 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.09, based on 1,315 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. Danang Rubber JSC's current ROC % of 3.39% is 33.4% 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 Danang Rubber JSC and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Danang Rubber JSC's current ROC % is 3.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Danang Rubber JSC stock overvalued right now?
Based on GuruFocus' analysis, Danang Rubber JSC (STC:DRC) is currently considered Significantly Undervalued. The stock's GF Value™ is ₫19,493.84, compared to a current price of ₫11,600.00 — trading 40.5% below its estimated fair value. The current ROC % is 3.39% and 33.4% below the Vehicles & Parts industry median of 5.09. Danang Rubber JSC's overall GF Score™ is 82/100 with 7 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 Danang Rubber JSC (STC:DRC), the current ROC % is 3.39% 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 Danang Rubber JSC (STC:DRC) Overvalued in 2026?
Based on GuruFocus' analysis, Danang Rubber JSC stock appears to be undervalued.
The current stock price of ₫11,600.00 is trading 40.5% below its estimated GF Value™ of ₫19,493.84.
GuruFocus considers Danang Rubber JSC to be Significantly Undervalued.
Key valuation signals for STC:DRC:
ROC %: 3.39%
GF Value™: ₫19,493.84 vs. price of ₫11,600.00 (40.5% below fair value)
Industry Position: 33.4% below the Vehicles & Parts median
No single metric tells the full story. See the STC:DRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Danang Rubber JSC is engaged in the manufacture and sale of tire products in Vietnam. Its products includes motorcycle tires, bicycle tires, truck tires, light truck tires, agricultural tires, radial tires, tubes, flaps, and technical rubber products.
82GF Score
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