ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Fisher & Paykel Healthcare's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 17.39%.
As of today (2026-06-26), Fisher & Paykel Healthcare's WACC % is 11.97%. Fisher & Paykel Healthcare's ROC % is 17.23% (calculated using TTM income statement data).
Fisher & Paykel Healthcare generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, Fisher & Paykel Healthcare's WACC % is 11.97%. Fisher & Paykel Healthcare's ROC % is 17.23% (calculated using TTM income statement data).
Fisher & Paykel Healthcare generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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 two times the semi-annual (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.
Fisher & Paykel Healthcare (ASX:FPH) has a ROC % of 17.39% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Fisher & Paykel Healthcare and its competitors.
Is Fisher & Paykel Healthcare's ROC % too high?
Fisher & Paykel Healthcare's current ROC % is 17.39%. The Medical Devices & Instruments industry median ROC % is 1.27. Fisher & Paykel Healthcare's value of 17.39% is 1269.3% above this industry median. Overall, Fisher & Paykel Healthcare has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fisher & Paykel Healthcare's ROC % compare to ISRG and BDX?
Fisher & Paykel Healthcare's ROC % of 17.39% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROC % is 1.27. Fisher & Paykel Healthcare's value of 17.39% is 1269.3% 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 Medical Devices & Instruments company?
The median ROC % among Medical Devices & Instruments companies is 1.27, based on 847 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. Fisher & Paykel Healthcare's current ROC % of 17.39% is 1269.3% 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 Fisher & Paykel Healthcare and its competitors. For the Medical Devices & Instruments industry, the median ROC % is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fisher & Paykel Healthcare's current ROC % is 17.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fisher & Paykel Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Fisher & Paykel Healthcare (ASX:FPH) is currently considered Modestly Undervalued. The stock's GF Value™ is A$36.31, compared to a current price of A$31.53 — trading 13.2% below its estimated fair value. The current ROC % is 17.39% and 1269.3% above the Medical Devices & Instruments industry median of 1.27. Fisher & Paykel Healthcare's overall GF Score™ is 86/100 with 3 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 Fisher & Paykel Healthcare (ASX:FPH), the current ROC % is 17.39% 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.
Is Fisher & Paykel Healthcare (ASX:FPH) Overvalued in 2026?
Based on GuruFocus' analysis, Fisher & Paykel Healthcare stock appears to be undervalued.
The current stock price of A$31.53 is trading 13.2% below its estimated GF Value™ of A$36.31.
GuruFocus considers Fisher & Paykel Healthcare to be Modestly Undervalued.
Key valuation signals for ASX:FPH:
ROC %: 17.39%
GF Value™: A$36.31 vs. price of A$31.53 (13.2% below fair value)
Industry Position: 1269.3% above the Medical Devices & Instruments median
No single metric tells the full story. See the ASX:FPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fisher & Paykel Healthcare is one of the three largest respiratory care device companies globally. It is the market leader in hospital use of humidifiers, masks, and related consumables, and the number three player in the at-home treatment of sleep apnea using respiratory devices. Both the hospital and homecare markets for respiratory devices are growing strongly in the developed markets in which Fisher & Paykel has a presence. The company earns roughly half of its revenue in North America, around a quarter in Europe, and approximately a fifth in Asia-Pacific. Fisher conducts its own R&D and has thousands of patents and pending applications. It manufactures in New Zealand, Mexico, and China, and has a multichannel distribution model.
86GF Score
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