ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SLD Entertainment's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 2.52%.
As of today (2026-06-28), SLD Entertainment's WACC % is 2.77%. SLD Entertainment's ROC % is 15.46% (calculated using TTM income statement data).
SLD Entertainment 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.
SLD Entertainment (TSE:3223) 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, SLD Entertainment's WACC % is 2.77%. SLD Entertainment's ROC % is 15.46% (calculated using TTM income statement data).
SLD Entertainment 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.
SLD Entertainment ROC % Related Terms
SLD Entertainment ROC % Historical Data
* Premium members only.
The historical data trend for SLD Entertainment'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 (Feb. 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.
SLD Entertainment (TSE:3223) has a ROC % of 2.52% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SLD Entertainment and its competitors.
Is SLD Entertainment's ROC % too high?
SLD Entertainment's current ROC % is 2.52%. The Restaurants industry median ROC % is 4.24. SLD Entertainment's value of 2.52% is 40.6% below this industry median. Overall, SLD Entertainment has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SLD Entertainment's ROC % compare to MCD and SBUX?
SLD Entertainment's ROC % of 2.52% can be compared against companies in the Restaurants industry. The industry median ROC % is 4.24. SLD Entertainment's value of 2.52% is 40.6% 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 Restaurants company?
The median ROC % among Restaurants companies is 4.24, based on 358 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. SLD Entertainment's current ROC % of 2.52% is 40.6% 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 SLD Entertainment and its competitors. For the Restaurants industry, the median ROC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SLD Entertainment's current ROC % is 2.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SLD Entertainment stock overvalued right now?
Based on GuruFocus' analysis, SLD Entertainment (TSE:3223) is currently considered Fairly Valued. The stock's GF Value™ is 円1,017.05, compared to a current price of 円925.00 — trading 9.1% below its estimated fair value. The current ROC % is 2.52% and 40.6% below the Restaurants industry median of 4.24. SLD Entertainment's overall GF Score™ is 56/100 with 2 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 SLD Entertainment (TSE:3223), the current ROC % is 2.52% as of Feb. 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 SLD Entertainment (TSE:3223) Overvalued in 2026?
Based on GuruFocus' analysis, SLD Entertainment stock appears to be undervalued.
The current stock price of 円925.00 is trading 9.1% below its estimated GF Value™ of 円1,017.05.
GuruFocus considers SLD Entertainment to be Fairly Valued.
Key valuation signals for TSE:3223:
ROC %: 2.52%
GF Value™: 円1,017.05 vs. price of 円925.00 (9.1% below fair value)
Industry Position: 40.6% below the Restaurants median
No single metric tells the full story. See the TSE:3223 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SLD Entertainment Inc operates a chain of restaurants. It operates a dining cafe under the Kawara CAFE & DINING brand name and food and beverage outlets under the LOOP brand name. Geographically, the activities are carried out in the region of Japan.
56GF Score
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