ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Capital Securities's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 6.31%.
As of today (2026-06-26), Capital Securities's WACC % is 2.64%. Capital Securities's ROC % is 3.02% (calculated using TTM income statement data).
Capital Securities 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.
Capital Securities (TPE:6005) 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, Capital Securities's WACC % is 2.64%. Capital Securities's ROC % is 3.02% (calculated using TTM income statement data).
Capital Securities 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.
Capital Securities ROC % Related Terms
Capital Securities ROC % Historical Data
* Premium members only.
The historical data trend for Capital Securities'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.
Capital Securities (TPE:6005) has a ROC % of 6.31% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Capital Securities and its competitors.
Is Capital Securities' ROC % too high?
Capital Securities' current ROC % is 6.31%. The Capital Markets industry median ROC % is 1.23. Capital Securities' value of 6.31% is 415.1% above this industry median. Overall, Capital Securities has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capital Securities' ROC % compare to MS and GS?
Capital Securities' ROC % of 6.31% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.23. Capital Securities' value of 6.31% is 415.1% 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 Capital Markets company?
The median ROC % among Capital Markets companies is 1.23, based on 694 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. Capital Securities's current ROC % of 6.31% is 415.1% 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 Capital Securities and its competitors. For the Capital Markets industry, the median ROC % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Securities's current ROC % is 6.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Securities stock overvalued right now?
Based on GuruFocus' analysis, Capital Securities (TPE:6005) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$31.80, compared to a current price of NT$38.80 — trading 22% above its estimated fair value. The current ROC % is 6.31% and 415.1% above the Capital Markets industry median of 1.23. Capital Securities' overall GF Score™ is 79/100 with 8 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 Capital Securities (TPE:6005), the current ROC % is 6.31% 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 Capital Securities (TPE:6005) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Securities stock appears to be overvalued.
The current stock price of NT$38.80 is trading 22% above its estimated GF Value™ of NT$31.80.
GuruFocus considers Capital Securities to be Modestly Overvalued.
Key valuation signals for TPE:6005:
ROC %: 6.31%
GF Value™: NT$31.80 vs. price of NT$38.80 (22% above fair value)
Industry Position: 415.1% above the Capital Markets median
No single metric tells the full story. See the TPE:6005 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital Securities Corp is a Taiwan-based securities company engaged in brokerage, underwriting, proprietary trading, and derivatives businesses. It operates in segments such as the Brokerage segment, which is engaged in brokerage trading, margin trading, and securities lending business. Corporate financing segment: Engaged in providing advisory on initial public offering or to register on the emerging or listed market, securities underwriting and sales, corporate finance, mergers and acquisitions. Dealing segment: Engaged in trading securities and related listed stock instruments on a proprietary basis. Derivative instrument segment: Engaged in the investment, consultancy, and issuance of derivative instruments. Futures: Engaged in the business of domestic futures brokerage services.
79GF Score
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