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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Aebi Schmidt Holding AG's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 4.41%.
As of today (2026-08-24), Aebi Schmidt Holding AG's WACC % is 5.70%. Aebi Schmidt Holding AG's ROC % is 4.25% (calculated using TTM income statement data).
Aebi Schmidt Holding AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Aebi Schmidt Holding AG (NAS:AEBI) 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, Aebi Schmidt Holding AG's WACC % is 5.70%. Aebi Schmidt Holding AG's ROC % is 4.25% (calculated using TTM income statement data).
Aebi Schmidt Holding AG 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.
* 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 (Jun. 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.
Aebi Schmidt Holding AG (AEBI) has a ROC % of 4.41% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Aebi Schmidt Holding AG and its competitors.
Is Aebi Schmidt Holding AG's ROC % too high?
Aebi Schmidt Holding AG's current ROC % is 4.41%. The Farm & Heavy Construction Machinery industry median ROC % is 5.58. Aebi Schmidt Holding AG's value of 4.41% is 21% below this industry median. Overall, Aebi Schmidt Holding AG has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Aebi Schmidt Holding AG's ROC % compare to LNN and ASTE?
Aebi Schmidt Holding AG's ROC % of 4.41% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROC % is 5.58. Aebi Schmidt Holding AG's value of 4.41% is 21% 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 Farm & Heavy Construction Machinery company?
The median ROC % among Farm & Heavy Construction Machinery companies is 5.58, based on 205 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. Aebi Schmidt Holding AG's current ROC % of 4.41% is 21% 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 Aebi Schmidt Holding AG and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROC % is 5.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aebi Schmidt Holding AG's current ROC % is 4.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aebi Schmidt Holding AG stock overvalued right now?
Aebi Schmidt Holding AG (AEBI) has a current ROC % of 4.41%. The current ROC % is 4.41% and 21% below the Farm & Heavy Construction Machinery industry median of 5.58. Aebi Schmidt Holding AG's overall GF Score™ is 16/100 with 4 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 Aebi Schmidt Holding AG (AEBI), the current ROC % is 4.41% 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.
Aebi Schmidt Holding AG is a manufacturer of specialty vehicles. Its core offerings include solutions and equipment for snow removal and de-icing, street and runway sweepers, truck and RV chassis, as well as truck bodies and vehicle upfitting for a wide range of commercial fleets and vocations. Additionally, it produces specialty vehicles and equipment for municipal and airport maintenance services as well as for the cultivation of steep and challenging terrain. The company's portfolio of product brands consists of Aebi, Schmidt, Monroe, Towmaster, MB, Utilimaster, Magnum, Strobes-R-Us, Swenson, Meyer, MB and Spartan RV Chassis. It has two reportable segments: North America, and Europe and the Rest of the World. Maximum revenue is generated from the North America segment.
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