ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Recruit Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 25.01%.
As of today (2026-06-26), Recruit Holdings Co's WACC % is 5.87%. Recruit Holdings Co's ROC % is 29.55% (calculated using TTM income statement data).
Recruit Holdings Co 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.
Recruit Holdings Co (STU:1RH) 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, Recruit Holdings Co's WACC % is 5.87%. Recruit Holdings Co's ROC % is 29.55% (calculated using TTM income statement data).
Recruit Holdings Co 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.
Recruit Holdings Co ROC % Related Terms
Recruit Holdings Co ROC % Historical Data
* Premium members only.
The historical data trend for Recruit Holdings Co'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.
Recruit Holdings Co (STU:1RH) has a ROC % of 25.01% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Recruit Holdings Co and its competitors.
Is Recruit Holdings Co's ROC % too high?
Recruit Holdings Co's current ROC % is 25.01%. The Interactive Media industry median ROC % is 1.88. Recruit Holdings Co's value of 25.01% is 1230.3% above this industry median. Overall, Recruit Holdings Co has a GF Score™ of 95/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Recruit Holdings Co's ROC % compare to GOOGL and META?
Recruit Holdings Co's ROC % of 25.01% can be compared against companies in the Interactive Media industry. The industry median ROC % is 1.88. Recruit Holdings Co's value of 25.01% is 1230.3% 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 an Interactive Media company?
The median ROC % among Interactive Media companies is 1.88, based on 560 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. Recruit Holdings Co's current ROC % of 25.01% is 1230.3% 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 Recruit Holdings Co and its competitors. For the Interactive Media industry, the median ROC % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Recruit Holdings Co's current ROC % is 25.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Recruit Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Recruit Holdings Co (STU:1RH) is currently considered Modestly Overvalued. The stock's GF Value™ is €48.94, compared to a current price of €59.82 — trading 22.2% above its estimated fair value. The current ROC % is 25.01% and 1230.3% above the Interactive Media industry median of 1.88. Recruit Holdings Co's overall GF Score™ is 95/100 with 5 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 Recruit Holdings Co (STU:1RH), the current ROC % is 25.01% 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 Recruit Holdings Co (STU:1RH) Overvalued in 2026?
Based on GuruFocus' analysis, Recruit Holdings Co stock appears to be overvalued.
The current stock price of €59.82 is trading 22.2% above its estimated GF Value™ of €48.94.
GuruFocus considers Recruit Holdings Co to be Modestly Overvalued.
Key valuation signals for STU:1RH:
ROC %: 25.01%
GF Value™: €48.94 vs. price of €59.82 (22.2% above fair value)
Industry Position: 1230.3% above the Interactive Media median
No single metric tells the full story. See the STU:1RH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Recruit is a holding company for various technology and employment-related businesses. Recruit's primary business is its HR technology segment, in which it owns two out of three globally scaled employment-related platforms: www.indeed.com, an online marketplace for employment; and www.glassdoor.com, an online review site for employers. Recruit also owns various marketing businesses operating in Japan for life events and lifestyle, a software solutions business for small and medium-size enterprises, or SMEs, in Japan, and various staffing businesses operating throughout the developed world.
95GF Score
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