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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Exeo Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 10.18%.
As of today (2026-07-16), Exeo Group's WACC % is 3.20%. Exeo Group's ROC % is 6.17% (calculated using TTM income statement data).
Exeo Group 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.
Exeo Group (TSE:1951) 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, Exeo Group's WACC % is 3.20%. Exeo Group's ROC % is 6.17% (calculated using TTM income statement data).
Exeo Group 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.
Exeo Group ROC % Related Terms
Exeo Group ROC % Historical Data
* Premium members only.
The historical data trend for Exeo Group'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.
Exeo Group (TSE:1951) has a ROC % of 10.18% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Exeo Group and its competitors.
Is Exeo Group's ROC % too high?
Exeo Group's current ROC % is 10.18%. The Construction industry median ROC % is 4.67. Exeo Group's value of 10.18% is 118% above this industry median. Overall, Exeo Group has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Exeo Group's ROC % compare to PWR and FIX?
Exeo Group's ROC % of 10.18% can be compared against companies in the Construction industry. The industry median ROC % is 4.67. Exeo Group's value of 10.18% is 118% 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 Construction company?
The median ROC % among Construction companies is 4.67, based on 1,757 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. Exeo Group's current ROC % of 10.18% is 118% 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 Exeo Group and its competitors. For the Construction industry, the median ROC % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Exeo Group's current ROC % is 10.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Exeo Group stock overvalued right now?
Based on GuruFocus' analysis, Exeo Group (TSE:1951) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,114.75, compared to a current price of 円2,623.00 — trading 24% above its estimated fair value. The current ROC % is 10.18% and 118% above the Construction industry median of 4.67. Exeo Group's overall GF Score™ is 78/100. 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 Exeo Group (TSE:1951), the current ROC % is 10.18% 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 Exeo Group (TSE:1951) Overvalued in 2026?
Based on GuruFocus' analysis, Exeo Group stock appears to be overvalued.
The current stock price of 円2,623.00 is trading 24% above its estimated GF Value™ of 円2,114.75.
GuruFocus considers Exeo Group to be Modestly Overvalued.
Key valuation signals for TSE:1951:
ROC %: 10.18%
GF Value™: 円2,114.75 vs. price of 円2,623.00 (24% above fair value)
Industry Position: 118% above the Construction median
No single metric tells the full story. See the TSE:1951 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Exeo Group Inc provides technological and construction solutions, products, and services for various end markets. It builds telecommunications infrastructure throughout Japan to strengthen connectivity and communication. The company develops information and communication facilities and increases the security and capacity for storage of data and software. In addition, the company installs and repairs electrical and air conditioning components for commercial and residential buildings and develops energy-related facilities for solar, water, and other renewable solutions. It builds network systems for corporations or private homes and offers consulting on the latest technology and solutions geared toward customers' management issues.
78GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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