ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Norwood Systems's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -133.15%.
As of today (2026-06-26), Norwood Systems's WACC % is 9.25%. Norwood Systems's ROC % is -112.18% (calculated using TTM income statement data).
Norwood Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Norwood Systems (ASX:NOR) 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, Norwood Systems's WACC % is 9.25%. Norwood Systems's ROC % is -112.18% (calculated using TTM income statement data).
Norwood Systems 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.
Norwood Systems ROC % Related Terms
Norwood Systems ROC % Historical Data
* Premium members only.
The historical data trend for Norwood Systems'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.
Norwood Systems (ASX:NOR) has a ROC % of -133.15% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Norwood Systems and its competitors.
Is Norwood Systems' ROC % too high?
Norwood Systems' current ROC % is -133.15%.
How does Norwood Systems' ROC % compare to TMUS and VZ?
Norwood Systems' ROC % of -133.15% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. 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 Telecommunication Services company?
The median ROC % among Telecommunication Services companies is 4.54, based on 366 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 Norwood Systems and its competitors. For the Telecommunication Services industry, the median ROC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Norwood Systems's current ROC % is -133.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Norwood Systems stock overvalued right now?
Based on GuruFocus' analysis, Norwood Systems (ASX:NOR) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.06, compared to a current price of A$0.03 — trading 48.3% below its estimated fair value. The current ROC % is -133.15%. 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 Norwood Systems (ASX:NOR), the current ROC % is -133.15% 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.
Norwood Systems Ltd develops cognitive, voice, messaging, and data services for carriers, consumers, and enterprises globally. The company focuses on delivering communication applications that simplify access to telecommunications services. Its offerings include a platform for Cognitive Voice services designed for diverse use cases, as well as Visual Voicemail solutions for telecommunications providers. Norwood provides enterprise communication services through SecondLine and related mobility applications, aimed at improving cost efficiency, ease of management, and regulatory compliance. The company's business segment is the provision of voice telecommunication services. It operates in one segment, voice telecommunication services.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:NOR has been successfully added to your 