ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. IMAX China Holding's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 10.46%.
As of today (2026-06-25), IMAX China Holding's WACC % is 8.97%. IMAX China Holding's ROC % is 15.19% (calculated using TTM income statement data).
IMAX China Holding 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.
IMAX China Holding (STU:IMK) 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, IMAX China Holding's WACC % is 8.97%. IMAX China Holding's ROC % is 15.19% (calculated using TTM income statement data).
IMAX China Holding 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.
IMAX China Holding ROC % Related Terms
IMAX China Holding ROC % Historical Data
* Premium members only.
The historical data trend for IMAX China Holding'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.
IMAX China Holding (STU:IMK) has a ROC % of 10.46% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on IMAX China Holding and its competitors.
Is IMAX China Holding's ROC % too high?
IMAX China Holding's current ROC % is 10.46%. The Media - Diversified industry median ROC % is 1.41. IMAX China Holding's value of 10.46% is 644.5% above this industry median. Overall, IMAX China Holding has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does IMAX China Holding's ROC % compare to NFLX and DIS?
IMAX China Holding's ROC % of 10.46% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.41. IMAX China Holding's value of 10.46% is 644.5% 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 a Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.41, based on 1,016 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. IMAX China Holding's current ROC % of 10.46% is 644.5% 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 IMAX China Holding and its competitors. For the Media - Diversified industry, the median ROC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IMAX China Holding's current ROC % is 10.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IMAX China Holding stock overvalued right now?
Based on GuruFocus' analysis, IMAX China Holding (STU:IMK) is currently considered Modestly Undervalued. The stock's GF Value™ is €1.01, compared to a current price of €0.91 — trading 9.9% below its estimated fair value. The current ROC % is 10.46% and 644.5% above the Media - Diversified industry median of 1.41. IMAX China Holding's overall GF Score™ is 83/100 with 1 warning sign 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 IMAX China Holding (STU:IMK), the current ROC % is 10.46% 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.
Is IMAX China Holding (STU:IMK) Overvalued in 2026?
Based on GuruFocus' analysis, IMAX China Holding stock appears to be undervalued.
The current stock price of €0.91 is trading 9.9% below its estimated GF Value™ of €1.01.
GuruFocus considers IMAX China Holding to be Modestly Undervalued.
Key valuation signals for STU:IMK:
ROC %: 10.46%
GF Value™: €1.01 vs. price of €0.91 (9.9% below fair value)
Industry Position: 644.5% above the Media - Diversified median
No single metric tells the full story. See the STU:IMK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IMAX China Holding Inc is an investment holding company that operates in the Entertainment industry in China. The Group has two reportable segments: Content Solutions, which principally includes content enhancement and distribution, and Technology Products and Services, which principally includes the sales, lease, and maintenance of IMAX Systems. The Group's activities that do not meet the criteria for a reportable segment are reported within all Others. The company operates in Mainland China, Hong Kong, Taiwan, and Macau, with the majority of revenue from Mainland China.
83GF Score
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