ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Falco Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 8.16%.
As of today (2026-06-24), Falco Holdings Co's WACC % is 2.95%. Falco Holdings Co's ROC % is 7.46% (calculated using TTM income statement data).
Falco Holdings Co 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.
Falco Holdings Co (TSE:4671) 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, Falco Holdings Co's WACC % is 2.95%. Falco Holdings Co's ROC % is 7.46% (calculated using TTM income statement data).
Falco Holdings Co 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.
Falco Holdings Co ROC % Related Terms
Falco Holdings Co ROC % Historical Data
* Premium members only.
The historical data trend for Falco 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 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.
Falco Holdings Co (TSE:4671) has a ROC % of 8.16% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Falco Holdings Co and its competitors.
Is Falco Holdings Co's ROC % too high?
Falco Holdings Co's current ROC % is 8.16%. Overall, Falco Holdings Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Falco Holdings Co's ROC % compare to TMO and DHR?
Falco Holdings Co's ROC % of 8.16% can be compared against companies in the Medical Diagnostics & Research industry. 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 Medical Diagnostics & Research company?
A good ROC % depends on the Medical Diagnostics & Research industry context. 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 Falco Holdings Co and its competitors. Falco Holdings Co's current ROC % is 8.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Falco Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Falco Holdings Co (TSE:4671) is currently considered Fairly Valued. The stock's GF Value™ is 円2,528.99, compared to a current price of 円2,544.00 — trading 0.6% above its estimated fair value. The current ROC % is 8.16%. Falco Holdings Co's overall GF Score™ is 71/100 with 6 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 Falco Holdings Co (TSE:4671), the current ROC % is 8.16% 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 Falco Holdings Co (TSE:4671) Overvalued in 2026?
Based on GuruFocus' analysis, Falco Holdings Co stock appears to be overvalued.
The current stock price of 円2,544.00 is trading 0.6% above its estimated GF Value™ of 円2,528.99.
GuruFocus considers Falco Holdings Co to be Fairly Valued.
Key valuation signals for TSE:4671:
ROC %: 8.16%
GF Value™: 円2,528.99 vs. price of 円2,544.00 (0.6% above fair value)
No single metric tells the full story. See the TSE:4671 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Falco Holdings Co Ltd provides testing services. The company is engaged in providing clinical testing and genetic testing services, testing in clinical research and clinical trials, food sanitation, and environmental testing, and pharmacy business. It also engaged in providing information technology business.
71GF Score
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