ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Toppan Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.16%.
As of today (2026-06-25), Toppan Holdings's WACC % is 3.84%. Toppan Holdings's ROC % is 2.41% (calculated using TTM income statement data).
Toppan Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Toppan Holdings (OTCPK:TOPPY) 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, Toppan Holdings's WACC % is 3.84%. Toppan Holdings's ROC % is 2.41% (calculated using TTM income statement data).
Toppan Holdings 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.
Toppan Holdings ROC % Related Terms
Toppan Holdings ROC % Historical Data
* Premium members only.
The historical data trend for Toppan Holdings'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.
Toppan Holdings (TOPPY) has a ROC % of 2.16% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Toppan Holdings and its competitors.
Is Toppan Holdings' ROC % too high?
Toppan Holdings' current ROC % is 2.16%. The Conglomerates industry median ROC % is 2.82. Toppan Holdings' value of 2.16% is 23.4% below this industry median. Overall, Toppan Holdings has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Toppan Holdings' ROC % compare to HON and MMM?
Toppan Holdings' ROC % of 2.16% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.82. Toppan Holdings' value of 2.16% is 23.4% 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 Conglomerates company?
The median ROC % among Conglomerates companies is 2.82, based on 552 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. Toppan Holdings's current ROC % of 2.16% is 23.4% 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 Toppan Holdings and its competitors. For the Conglomerates industry, the median ROC % is 2.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toppan Holdings's current ROC % is 2.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toppan Holdings stock overvalued right now?
Based on GuruFocus' analysis, Toppan Holdings (TOPPY) is currently considered Fairly Valued. The stock's GF Value™ is $15.12, compared to a current price of $16.00 — trading 5.8% above its estimated fair value. The current ROC % is 2.16% and 23.4% below the Conglomerates industry median of 2.82. Toppan Holdings' overall GF Score™ is 80/100 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 Toppan Holdings (TOPPY), the current ROC % is 2.16% 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 Toppan Holdings (TOPPY) Overvalued in 2026?
Based on GuruFocus' analysis, Toppan Holdings stock appears to be overvalued.
The current stock price of $16.00 is trading 5.8% above its estimated GF Value™ of $15.12.
GuruFocus considers Toppan Holdings to be Fairly Valued.
Key valuation signals for TOPPY:
ROC %: 2.16%
GF Value™: $15.12 vs. price of $16.00 (5.8% above fair value)
Industry Position: 23.4% below the Conglomerates median
No single metric tells the full story. See the TOPPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toppan Holdings Inc provides products and services geared toward printing technologies. Its product portfolio of printing technologies consists of in-store advertisements, books, magnetic cards, floor filters, wallpaper, flexible packaging, and other solutions. The company operates three business segments: information and communication (the majority of total revenue), electronics, and living and industry. Toppan Printing provides secure documents, such as credit cards, coupons, and business forms, and offers a mix of marketing materials to increase diversification. It utilizes sales promotion personnel, printing press operators, and research personnel to develop solutions for customers. Operations and sales are located in Japan.
80GF Score
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