Rakon (NZSE:RAK) ROCE %: -3.80% (As of Sep. 2025)


NZSE:RAK Rakon Ltd NZSE:RAK
31 GF Score
Price NZ$1.55
GF Value NZ$0.78
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Rakon ROCE %?

Rakon NZSE:RAK 31 ROCE % is -3.80% as of Sep. 2025. GuruFocus rates NZSE:RAK with a GF Score™ of 31/100 and a GF Value™ of NZ$0.78 (Significantly Overvalued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Rakon's annualized ROCE % for the quarter that ended in Sep. 2025 was -3.80%.

Rakon  (NZSE:RAK) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Rakon ROCE % Related Terms

Rakon ROCE % Historical Data

* Premium members only.

The historical data trend for Rakon's ROCE % 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.

Rakon ROCE % Chart

Rakon Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.63 32.19 19.91 0.40 -3.69

Rakon Semi-Annual Data
Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.51 0.30 -17.34 9.44 -3.80
NZSE:RAK
31GF Score
Rakon Ltd NZSE:RAK
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Rakon ROCE % Calculation

Rakon's annualized ROCE % for the fiscal year that ended in Mar. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=-6.513/( ( (207.096 - 33.706) + (217.449 - 38.104) )/ 2 )
=-6.513/( (173.39+179.345)/ 2 )
=-6.513/176.3675
=-3.69 %

Rakon's ROCE % of for the quarter that ended in Sep. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2025 )  (Q: Mar. 2025 )(Q: Sep. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2025 )  (Q: Mar. 2025 )(Q: Sep. 2025 )
=-6.77/( ( (217.449 - 38.104) + (230.906 - 53.67) )/ 2 )
=-6.77/( ( 179.345 + 177.236 )/ 2 )
=-6.77/178.2905
=-3.80 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2025) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -3.80% mean?
Rakon (NZSE:RAK) has a ROCE % of -3.80% as of Sep. 2025.
Is Rakon's ROCE % too high?
Rakon's current ROCE % is -3.80%. Overall, Rakon has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rakon's ROCE % compare to VRT and BE?
Rakon's ROCE % of -3.80% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.09. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Industrial Products company?
The median ROCE % among Industrial Products companies is 7.09, based on 3,027 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median ROCE % is 7.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rakon's current ROCE % is -3.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rakon stock overvalued right now?
Based on GuruFocus' analysis, Rakon (NZSE:RAK) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$0.78, compared to a current price of NZ$1.55 — trading 98.7% above its estimated fair value. The current ROCE % is -3.80%. Rakon's overall GF Score™ is 31/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Rakon (NZSE:RAK), the current ROCE % is -3.80% as of Sep. 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 Rakon (NZSE:RAK) Overvalued in 2026?

Based on GuruFocus' analysis, Rakon stock appears to be overvalued. The current stock price of NZ$1.55 is trading 98.7% above its estimated GF Value™ of NZ$0.78. GuruFocus considers Rakon to be Significantly Overvalued.

Key valuation signals for NZSE:RAK:

  • ROCE %: -3.80%
  • GF Value™: NZ$0.78 vs. price of NZ$1.55 (98.7% above fair value)
  • GF Score™: 31/100 with 5 warning signs

No single metric tells the full story. See the NZSE:RAK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Rakon Business Description

Address 8 Sylvia Park Road, Mt Wellington, Auckland, NZL, 1060
Rakon Ltd is engaged in the development of frequency control products and timing solutions for a wide range of applications. Its core markets are Telecommunications, Space & Defence, and Global Positioning. The company's product range consists of low stability Crystal Oscillators (XO), Voltage Controlled Crystal Oscillators (VCXOs), and crystal products, through to high volume precision Temperature Compensated Crystal Oscillators (TCXOs), Oven Controlled Crystal Oscillators (OCXOs), Digital Pulse Compression Sub-Systems (DPCSS), Surface Acoustic Wave (SAW) oscillators and specialized products. The company's geographical segments are Asia, North America, Europe, and Others.
31GF Score

Get the complete analysis for NZSE:RAK

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NZ$1.55
Price
NZ$0.78
GF Value