ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Soliton Systems KK's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 25.27%.
As of today (2026-06-26), Soliton Systems KK's WACC % is 7.22%. Soliton Systems KK's ROC % is 19.64% (calculated using TTM income statement data).
Soliton Systems KK 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.
Soliton Systems KK (OTCPK:SYKKF) 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, Soliton Systems KK's WACC % is 7.22%. Soliton Systems KK's ROC % is 19.64% (calculated using TTM income statement data).
Soliton Systems KK 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.
Soliton Systems KK ROC % Related Terms
Soliton Systems KK ROC % Historical Data
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The historical data trend for Soliton Systems KK'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 (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.
Soliton Systems KK (SYKKF) has a ROC % of 25.27% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Soliton Systems KK and its competitors.
Is Soliton Systems KK's ROC % too high?
Soliton Systems KK's current ROC % is 25.27%. The Software industry median ROC % is 3.11. Soliton Systems KK's value of 25.27% is 713.8% above this industry median. Overall, Soliton Systems KK has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Soliton Systems KK's ROC % compare to MSFT and ORCL?
Soliton Systems KK's ROC % of 25.27% can be compared against companies in the Software industry. The industry median ROC % is 3.11. Soliton Systems KK's value of 25.27% is 713.8% 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 Software company?
The median ROC % among Software companies is 3.11, based on 2,830 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. Soliton Systems KK's current ROC % of 25.27% is 713.8% 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 Soliton Systems KK and its competitors. For the Software industry, the median ROC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Soliton Systems KK's current ROC % is 25.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Soliton Systems KK stock overvalued right now?
Soliton Systems KK (SYKKF) has a current ROC % of 25.27%. The stock's GF Value™ is $5.66, compared to a current price of $8.75 — trading 54.6% above its estimated fair value. The current ROC % is 25.27% and 713.8% above the Software industry median of 3.11. Soliton Systems KK's overall GF Score™ is 74/100 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 Soliton Systems KK (SYKKF), the current ROC % is 25.27% 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 Soliton Systems KK (SYKKF) Overvalued in 2026?
Based on GuruFocus' analysis, Soliton Systems KK stock appears to be overvalued.
The current stock price of $8.75 is trading 54.6% above its estimated GF Value™ of $5.66.
Key valuation signals for SYKKF:
ROC %: 25.27%
GF Value™: $5.66 vs. price of $8.75 (54.6% above fair value)
Industry Position: 713.8% above the Software median
No single metric tells the full story. See the SYKKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Soliton Systems KK is engaged in IT security business, Video communication business, and Eco-device business. The IT security business involves the development and sale of products such as information leakage countermeasure, login authentication by electronic certificate, big data recording, cybersecurity measures, enterprise cloud service, and enterprise network integration. The Video communication business involves development and sales of "Smart-telecaster", a high-quality real-time image transmission system using mobile lines and Eco-device business engages in the development and sales of analog / digital mixed semiconductor devices and embedded systems.
74GF Score
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