ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Environment Friendly Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 2.97%.
As of today (2026-06-27), Environment Friendly Holdings's WACC % is 6.21%. Environment Friendly Holdings's ROC % is 0.00% (calculated using TTM income statement data).
Environment Friendly Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Environment Friendly Holdings's WACC % is 6.21%. Environment Friendly Holdings's ROC % is 0.00% (calculated using TTM income statement data).
Environment Friendly 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.
Environment Friendly Holdings ROC % Related Terms
Environment Friendly Holdings ROC % Historical Data
* 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 (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.
Environment Friendly Holdings (TSE:3777) has a ROC % of 2.97% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Environment Friendly Holdings and its competitors.
Is Environment Friendly Holdings' ROC % too high?
Environment Friendly Holdings' current ROC % is 2.97%. The Software industry median ROC % is 3.11. Environment Friendly Holdings' value of 2.97% is 4.3% below this industry median. Overall, Environment Friendly Holdings has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Environment Friendly Holdings' ROC % compare to CRM and SHOP?
Environment Friendly Holdings' ROC % of 2.97% can be compared against companies in the Software industry. The industry median ROC % is 3.11. Environment Friendly Holdings' value of 2.97% is 4.3% 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 Software company?
The median ROC % among Software companies is 3.11, based on 2,830 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. Environment Friendly Holdings's current ROC % of 2.97% is 4.3% 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 Environment Friendly Holdings and its competitors. For the Software industry, the median ROC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Environment Friendly Holdings's current ROC % is 2.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Environment Friendly Holdings stock overvalued right now?
Based on GuruFocus' analysis, Environment Friendly Holdings (TSE:3777) is currently considered Significantly Overvalued. The stock's GF Value™ is 円6.85, compared to a current price of 円53.00 — trading 673.7% above its estimated fair value. The current ROC % is 2.97% and 4.3% below the Software industry median of 3.11. Environment Friendly Holdings' overall GF Score™ is 53/100 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 Environment Friendly Holdings (TSE:3777), the current ROC % is 2.97% 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 Environment Friendly Holdings (TSE:3777) Overvalued in 2026?
Based on GuruFocus' analysis, Environment Friendly Holdings stock appears to be overvalued.
The current stock price of 円53.00 is trading 673.7% above its estimated GF Value™ of 円6.85.
GuruFocus considers Environment Friendly Holdings to be Significantly Overvalued.
Key valuation signals for TSE:3777:
ROC %: 2.97%
GF Value™: 円6.85 vs. price of 円53.00 (673.7% above fair value)
No single metric tells the full story. See the TSE:3777 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Environment Friendly Holdings Business Description
Environment Friendly Holdings Corp has three segments: Natural Resources & Energy, Reuse Business, and Environmental Business. The Natural Resources & Energy segment deals with biomass, sorghum, solar power development, electricity retail, and energy consulting. The Reuse Business involves selling new and used appliances, ICT platform and web system development, and cybersecurity services. The Environmental Business handles installation, maintenance, and repair of multi-story parking lots, as well as facility management for apartments and office buildings.
53GF Score
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