ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. CPE Technology Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 12.65%.
As of today (2026-06-26), CPE Technology Bhd's WACC % is 10.46%. CPE Technology Bhd's ROC % is 8.86% (calculated using TTM income statement data).
CPE Technology Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
CPE Technology Bhd (XKLS:5317) 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, CPE Technology Bhd's WACC % is 10.46%. CPE Technology Bhd's ROC % is 8.86% (calculated using TTM income statement data).
CPE Technology Bhd 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.
CPE Technology Bhd ROC % Related Terms
CPE Technology Bhd ROC % Historical Data
* Premium members only.
The historical data trend for CPE Technology Bhd'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 (Mar. 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.
CPE Technology Bhd (XKLS:5317) has a ROC % of 12.65% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CPE Technology Bhd and its competitors.
Is CPE Technology Bhd's ROC % too high?
CPE Technology Bhd's current ROC % is 12.65%. The Hardware industry median ROC % is 4.12. CPE Technology Bhd's value of 12.65% is 207.4% above this industry median. Overall, CPE Technology Bhd has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does CPE Technology Bhd's ROC % compare to APH and GLW?
CPE Technology Bhd's ROC % of 12.65% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. CPE Technology Bhd's value of 12.65% is 207.4% 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. CPE Technology Bhd's current ROC % of 12.65% is 207.4% 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 CPE Technology Bhd 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. CPE Technology Bhd's current ROC % is 12.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CPE Technology Bhd stock overvalued right now?
CPE Technology Bhd (XKLS:5317) has a current ROC % of 12.65%. The current ROC % is 12.65% and 207.4% above the Hardware industry median of 4.12. CPE Technology Bhd's overall GF Score™ is 46/100 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 CPE Technology Bhd (XKLS:5317), the current ROC % is 12.65% as of Mar. 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.
CPE Technology Bhd is an investment holding company that focuses on manufacturing precision-machined parts and components through its subsidiaries. The company is involved in precision machining and mechanical sub-assembly, including CNC turning and milling, turn-mill, and finishing processes. It also engages in trading precision machine parts and components. The company uses computer numerically controlled machinery integrated with CAD/CAM software to manufacture parts and assemblies used in sectors such as consumer electronics and semiconductors, automotive components, health and science, among others. Geographically, the company generates the majority of its revenue from the United States, with the rest coming from Singapore, Malaysia, Italy, Japan, Thailand, and other regions.
46GF Score
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