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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. Reach Machinery Co's annualized ROCE % for the quarter that ended in Jun. 2026 was 12.99%.
Reach Machinery Co (SZSE:301596) 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.
Reach Machinery Co ROCE % Related Terms
Reach Machinery Co ROCE % Historical Data
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The historical data trend for Reach Machinery Co'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.
(1) Note:
The EBIT data used here is four times the quarterly (Jun. 2026) 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.
Reach Machinery Co (SZSE:301596) has a ROCE % of 12.99% as of Jun. 2026.
Is Reach Machinery Co's ROCE % too high?
Reach Machinery Co's current ROCE % is 12.99%. The Vehicles & Parts industry median ROCE % is 8.45. Reach Machinery Co's value of 12.99% is 53.7% above this industry median. Overall, Reach Machinery Co has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Reach Machinery Co's ROCE % compare to ORLY and AZO?
Reach Machinery Co's ROCE % of 12.99% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 8.45. Reach Machinery Co's value of 12.99% is 53.7% 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 ROCE % for a Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 8.45, based on 1,321 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. Reach Machinery Co's current ROCE % of 12.99% is 53.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median ROCE % is 8.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reach Machinery Co's current ROCE % is 12.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reach Machinery Co stock overvalued right now?
Reach Machinery Co (SZSE:301596) has a current ROCE % of 12.99%. The current ROCE % is 12.99% and 53.7% above the Vehicles & Parts industry median of 8.45. Reach Machinery Co's overall GF Score™ is 39/100 with 2 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 Reach Machinery Co (SZSE:301596), the current ROCE % is 12.99% as of Jun. 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.
Reach Machinery Co Ltd is engaged in the research and development, production and sales of key components for automation equipment transmission and braking systems. Its products include electromagnetic brakes that include spring-loaded brakes, permanent magnet brakes, electric brakes, and other types. Harmonic reducer that includes Cup-RCSD, Top Hat-RHSD, Cup-RCSG, etc. Planetary Roller Screw, Expansion Sleeve and Shrinking Disc.
39GF Score
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