ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Central Security Patrols Co's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 4.05%.
As of today (2026-06-26), Central Security Patrols Co's WACC % is 2.55%. Central Security Patrols Co's ROC % is 5.92% (calculated using TTM income statement data).
Central Security Patrols 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.
Central Security Patrols Co (TSE:9740) 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, Central Security Patrols Co's WACC % is 2.55%. Central Security Patrols Co's ROC % is 5.92% (calculated using TTM income statement data).
Central Security Patrols 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.
* 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 (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.
Central Security Patrols Co (TSE:9740) has a ROC % of 4.05% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Central Security Patrols Co and its competitors.
Is Central Security Patrols Co's ROC % too high?
Central Security Patrols Co's current ROC % is 4.05%. The Business Services industry median ROC % is 5.93. Central Security Patrols Co's value of 4.05% is 31.7% below this industry median. Overall, Central Security Patrols Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Central Security Patrols Co's ROC % compare to ALLE and MSA?
Central Security Patrols Co's ROC % of 4.05% can be compared against companies in the Business Services industry. The industry median ROC % is 5.93. Central Security Patrols Co's value of 4.05% is 31.7% 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 Business Services company?
The median ROC % among Business Services companies is 5.93, based on 1,075 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. Central Security Patrols Co's current ROC % of 4.05% is 31.7% 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 Central Security Patrols Co and its competitors. For the Business Services industry, the median ROC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Central Security Patrols Co's current ROC % is 4.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central Security Patrols Co stock overvalued right now?
Based on GuruFocus' analysis, Central Security Patrols Co (TSE:9740) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,171.67, compared to a current price of 円2,538.00 — trading 20% below its estimated fair value. The current ROC % is 4.05% and 31.7% below the Business Services industry median of 5.93. Central Security Patrols Co's overall GF Score™ is 69/100 with 1 warning sign 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 Central Security Patrols Co (TSE:9740), the current ROC % is 4.05% 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 Central Security Patrols Co (TSE:9740) Overvalued in 2026?
Based on GuruFocus' analysis, Central Security Patrols Co stock appears to be undervalued.
The current stock price of 円2,538.00 is trading 20% below its estimated GF Value™ of 円3,171.67.
GuruFocus considers Central Security Patrols Co to be Modestly Undervalued.
Key valuation signals for TSE:9740:
ROC %: 4.05%
GF Value™: 円3,171.67 vs. price of 円2,538.00 (20% below fair value)
Industry Position: 31.7% below the Business Services median
No single metric tells the full story. See the TSE:9740 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Central Security Patrols Co Ltd provides security services in Japan. The company provides manned guarding, machine security, online security, home security, transport security, and surveillance cameras. The company also develops and sells information security systems and cryptographic technology software.
69GF Score
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