ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Wedge Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -3.91%.
As of today (2026-06-28), Wedge Holdings Co's WACC % is 1.90%. Wedge Holdings Co's ROC % is -4.26% (calculated using TTM income statement data).
Wedge Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Wedge Holdings Co (TSE:2388) 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, Wedge Holdings Co's WACC % is 1.90%. Wedge Holdings Co's ROC % is -4.26% (calculated using TTM income statement data).
Wedge Holdings Co 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.
Wedge Holdings Co ROC % Related Terms
Wedge Holdings Co ROC % Historical Data
* Premium members only.
The historical data trend for Wedge Holdings Co'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 (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.
Wedge Holdings Co (TSE:2388) has a ROC % of -3.91% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Wedge Holdings Co and its competitors.
Is Wedge Holdings Co's ROC % too high?
Wedge Holdings Co's current ROC % is -3.91%. Overall, Wedge Holdings Co has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wedge Holdings Co's ROC % compare to HON and MMM?
Wedge Holdings Co's ROC % of -3.91% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.78. 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 2.78, 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. 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 Wedge Holdings Co and its competitors. For the Conglomerates industry, the median ROC % is 2.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wedge Holdings Co's current ROC % is -3.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wedge Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Wedge Holdings Co (TSE:2388) is currently considered Possible Value Trap. The stock's GF Value™ is 円84.69, compared to a current price of 円32.00 — trading 62.2% below its estimated fair value. The current ROC % is -3.91%. Wedge Holdings Co's overall GF Score™ is 50/100 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 Wedge Holdings Co (TSE:2388), the current ROC % is -3.91% 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 Wedge Holdings Co (TSE:2388) Overvalued in 2026?
Based on GuruFocus' analysis, Wedge Holdings Co stock appears to be undervalued.
The current stock price of 円32.00 is trading 62.2% below its estimated GF Value™ of 円84.69.
GuruFocus considers Wedge Holdings Co to be Possible Value Trap.
Key valuation signals for TSE:2388:
ROC %: -3.91%
GF Value™: 円84.69 vs. price of 円32.00 (62.2% below fair value)
No single metric tells the full story. See the TSE:2388 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wedge Holdings Co Ltd through its subsidiaries is engaged in two core businesses which are Digital Finance business and Contents business. Contents business includes publishing, games, music and related media through multiple business units. It also produces audio & visual contents as well as DVD and related character products. Digital Finance business composed of motorcycle leasing activities.
50GF 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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