ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Optex Group Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 11.87%.
As of today (2026-06-27), Optex Group Co's WACC % is 8.53%. Optex Group Co's ROC % is 14.50% (calculated using TTM income statement data).
Optex Group 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.
Optex Group Co (TSE:6914) 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, Optex Group Co's WACC % is 8.53%. Optex Group Co's ROC % is 14.50% (calculated using TTM income statement data).
Optex Group 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.
Optex Group Co ROC % Related Terms
Optex Group Co ROC % Historical Data
* Premium members only.
The historical data trend for Optex Group 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.
Optex Group Co (TSE:6914) has a ROC % of 11.87% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Optex Group Co and its competitors.
Is Optex Group Co's ROC % too high?
Optex Group Co's current ROC % is 11.87%. The Hardware industry median ROC % is 4.12. Optex Group Co's value of 11.87% is 188.5% above this industry median. Overall, Optex Group Co has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Optex Group Co's ROC % compare to APH and GLW?
Optex Group Co's ROC % of 11.87% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Optex Group Co's value of 11.87% is 188.5% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Optex Group Co's current ROC % of 11.87% is 188.5% 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 Optex Group Co and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Optex Group Co's current ROC % is 11.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optex Group Co stock overvalued right now?
Based on GuruFocus' analysis, Optex Group Co (TSE:6914) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,082.06, compared to a current price of 円4,230.00 — trading 103.2% above its estimated fair value. The current ROC % is 11.87% and 188.5% above the Hardware industry median of 4.12. Optex Group Co's overall GF Score™ is 82/100 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 Optex Group Co (TSE:6914), the current ROC % is 11.87% 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 Optex Group Co (TSE:6914) Overvalued in 2026?
Based on GuruFocus' analysis, Optex Group Co stock appears to be overvalued.
The current stock price of 円4,230.00 is trading 103.2% above its estimated GF Value™ of 円2,082.06.
GuruFocus considers Optex Group Co to be Significantly Overvalued.
Key valuation signals for TSE:6914:
ROC %: 11.87%
GF Value™: 円2,082.06 vs. price of 円4,230.00 (103.2% above fair value)
Industry Position: 188.5% above the Hardware median
No single metric tells the full story. See the TSE:6914 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Optex Group Co Ltd is a Japan sensors and related system manufacturing company. The company operates through three segments. Its Sensing Solutions (SS) business develops security, automatic door, and IoT sensors that improve safety, convenience, and building efficiency. The Industrial Automation (IA) segment provides factory sensors, machine vision lighting, and inspection systems that enhance manufacturing productivity and quality control. The Electronics Manufacturing Services (EMS) segment offers electronic device contract manufacturing, proprietary product development, software development, and related service businesses. The company generates maximum revenue from sensing segment.
82GF Score
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