ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hydroelectricity Investment and Development Company's annualized return on capital (ROC %) for the quarter that ended in Apr. 2026 was -0.72%.
Hydroelectricity Investment and Development Company (XNEP:HIDCL) 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, Hydroelectricity Investment and Development Company's WACC % is 10.37%. Hydroelectricity Investment and Development Company's ROC % is -0.06% (calculated using TTM income statement data).
Hydroelectricity Investment and Development Company 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.
Hydroelectricity Investment and Development Company ROC % Related Terms
Hydroelectricity Investment and Development Company 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.
Hydroelectricity Investment and Development Company ROC % Chart
Hydroelectricity Investment and Development Company Annual Data
Note:
The Operating Income data used here is four times the quarterly (Apr. 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.
Hydroelectricity Investment and Development Company (XNEP:HIDCL) has a ROC % of -0.72% as of Apr. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hydroelectricity Investment and Development Company and its competitors.
Is Hydroelectricity Investment and Development Company's ROC % too high?
Hydroelectricity Investment and Development Company's current ROC % is -0.72%. Overall, Hydroelectricity Investment and Development Company has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hydroelectricity Investment and Development Company's ROC % compare to BLK and BX?
Hydroelectricity Investment and Development Company's ROC % of -0.72% can be compared against companies in the Asset Management industry. The industry median ROC % is 1.18. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Asset Management company?
The median ROC % among Asset Management companies is 1.18, based on 707 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. 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 Hydroelectricity Investment and Development Company and its competitors. For the Asset Management industry, the median ROC % is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hydroelectricity Investment and Development Company's current ROC % is -0.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hydroelectricity Investment and Development Company stock overvalued right now?
Based on GuruFocus' analysis, Hydroelectricity Investment and Development Company (XNEP:HIDCL) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR296.61, compared to a current price of NPR253.00 — trading 14.7% below its estimated fair value. The current ROC % is -0.72%. Hydroelectricity Investment and Development Company's overall GF Score™ is 81/100 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 Hydroelectricity Investment and Development Company (XNEP:HIDCL), the current ROC % is -0.72% as of Apr. 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 Hydroelectricity Investment and Development Company (XNEP:HIDCL) Overvalued in 2026?
Based on GuruFocus' analysis, Hydroelectricity Investment and Development Company stock appears to be undervalued.
The current stock price of NPR253.00 is trading 14.7% below its estimated GF Value™ of NPR296.61.
GuruFocus considers Hydroelectricity Investment and Development Company to be Modestly Undervalued.
Key valuation signals for XNEP:HIDCL:
ROC %: -0.72%
GF Value™: NPR296.61 vs. price of NPR253.00 (14.7% below fair value)
No single metric tells the full story. See the XNEP:HIDCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hydroelectricity Investment and Development Company Business Description
Hydroelectricity Investment and Development Company Ltd mobilizes funds from domestic and international resource base to cater to the needs of investments in the middle to mega hydroelectricity generation, transmission, and distribution projects. The company operates and generates revenue within Nepal.
81GF Score
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