ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Brightstar Lottery's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.70%.
As of today (2026-06-25), Brightstar Lottery's WACC % is 4.65%. Brightstar Lottery's ROC % is 4.47% (calculated using TTM income statement data).
Brightstar Lottery earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Brightstar Lottery (NYSE:BRSL) 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, Brightstar Lottery's WACC % is 4.65%. Brightstar Lottery's ROC % is 4.47% (calculated using TTM income statement data).
Brightstar Lottery 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.
Brightstar Lottery ROC % Related Terms
Brightstar Lottery ROC % Historical Data
* Premium members only.
The historical data trend for Brightstar Lottery'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 four times the quarterly (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.
Brightstar Lottery (BRSL) has a ROC % of 4.70% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Brightstar Lottery and its competitors.
Is Brightstar Lottery's ROC % too high?
Brightstar Lottery's current ROC % is 4.70%. The Travel & Leisure industry median ROC % is 3.74. Brightstar Lottery's value of 4.70% is 25.7% above this industry median. Overall, Brightstar Lottery has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Brightstar Lottery's ROC % compare to RSI and ACEL?
Brightstar Lottery's ROC % of 4.70% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.74. Brightstar Lottery's value of 4.70% is 25.7% 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 ROC % for a Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.74, based on 833 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. Brightstar Lottery's current ROC % of 4.70% is 25.7% 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 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 Brightstar Lottery and its competitors. For the Travel & Leisure industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brightstar Lottery's current ROC % is 4.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brightstar Lottery stock overvalued right now?
Based on GuruFocus' analysis, Brightstar Lottery (BRSL) is currently considered Possible Value Trap. The stock's GF Value™ is $18.90, compared to a current price of $10.82 — trading 42.8% below its estimated fair value. The current ROC % is 4.70% and 25.7% above the Travel & Leisure industry median of 3.74. Brightstar Lottery's overall GF Score™ is 64/100 with 6 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 Brightstar Lottery (BRSL), the current ROC % is 4.70% 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 Brightstar Lottery (BRSL) Overvalued in 2026?
Based on GuruFocus' analysis, Brightstar Lottery stock appears to be undervalued.
The current stock price of $10.82 is trading 42.8% below its estimated GF Value™ of $18.90.
GuruFocus considers Brightstar Lottery to be Possible Value Trap.
Key valuation signals for BRSL:
ROC %: 4.70%
GF Value™: $18.90 vs. price of $10.82 (42.8% below fair value)
Industry Position: 25.7% above the Travel & Leisure median
No single metric tells the full story. See the BRSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brightstar Lottery PLC is a pure-play lottery company focused on innovation, delivering secure technology and comprehensive lottery solutions. The Company operates lottery management services and instant lottery systems, and runs an international land-based lottery and iLottery business covering sales, operations, product development, technology, and support, while serving as an iLottery platform provider. Lottery services are delivered through operating contracts, FMCs, LMAs, iLottery, and product sales contracts, including the Italian Lotto license and Italian Scratch and Win (Gratta e Vinci) lottery license. The majority of revenue comes from operating contracts and FMCs. Brightstar operates in the US, Italy, Rest of Europe, and Others, with the majority of revenue coming from the US.
64GF Score
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