ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Mach7 Technologies's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -27.03%.
As of today (2026-06-24), Mach7 Technologies's WACC % is 4.12%. Mach7 Technologies's ROC % is -50.17% (calculated using TTM income statement data).
Mach7 Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Mach7 Technologies (ASX:M7T) 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, Mach7 Technologies's WACC % is 4.12%. Mach7 Technologies's ROC % is -50.17% (calculated using TTM income statement data).
Mach7 Technologies 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.
Mach7 Technologies ROC % Related Terms
Mach7 Technologies ROC % Historical Data
* Premium members only.
The historical data trend for Mach7 Technologies's ROC % 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.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
Mach7 Technologies (ASX:M7T) has a ROC % of -27.03% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Mach7 Technologies and its competitors.
Is Mach7 Technologies' ROC % too high?
Mach7 Technologies' current ROC % is -27.03%. Overall, Mach7 Technologies has a GF Score™ of 35/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Mach7 Technologies' ROC % compare to VEEV and BTSG?
Mach7 Technologies' ROC % of -27.03% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.06. 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 Healthcare Providers & Services company?
The median ROC % among Healthcare Providers & Services companies is 3.06, based on 671 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 Mach7 Technologies and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mach7 Technologies's current ROC % is -27.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mach7 Technologies stock overvalued right now?
Based on GuruFocus' analysis, Mach7 Technologies (ASX:M7T) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.82, compared to a current price of A$0.31 — trading 62.8% below its estimated fair value. The current ROC % is -27.03%. Mach7 Technologies' overall GF Score™ is 35/100 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 Mach7 Technologies (ASX:M7T), the current ROC % is -27.03% as of Dec. 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 Mach7 Technologies (ASX:M7T) Overvalued in 2026?
Based on GuruFocus' analysis, Mach7 Technologies stock appears to be undervalued.
The current stock price of A$0.31 is trading 62.8% below its estimated GF Value™ of A$0.82.
GuruFocus considers Mach7 Technologies to be Possible Value Trap.
Key valuation signals for ASX:M7T:
ROC %: -27.03%
GF Value™: A$0.82 vs. price of A$0.31 (62.8% below fair value)
No single metric tells the full story. See the ASX:M7T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mach7 Technologies Ltd is a healthcare software company focused on enterprise imaging infrastructure. The company's vendor neutral platform enables health systems to manage, access, and exchange medical imaging data across departments, sites, and vendors. It serves across North America, Asia-Pacific, and the Middle East, with deployments ranging from academic medical centres to multi-site health networks. A substantial part of revenue is derived in the form of Subscription revenue. Geographically, it derives a majority of its revenue from North America.
35GF Score
Get the complete analysis for ASX:M7T
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:M7T has been successfully added to your 
