ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Brother Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.02%.
As of today (2026-06-25), Brother Industries's WACC % is 5.20%. Brother Industries's ROC % is 8.67% (calculated using TTM income statement data).
Brother Industries 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, Brother Industries's WACC % is 5.20%. Brother Industries's ROC % is 8.67% (calculated using TTM income statement data).
Brother Industries 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.
Brother Industries ROC % Related Terms
Brother Industries ROC % Historical Data
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The historical data trend for Brother Industries'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.
Brother Industries (BRTHF) has a ROC % of 8.02% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Brother Industries and its competitors.
Is Brother Industries' ROC % too high?
Brother Industries' current ROC % is 8.02%. The Industrial Products industry median ROC % is 5.23. Brother Industries' value of 8.02% is 53.3% above this industry median. Overall, Brother Industries has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Brother Industries' ROC % compare to competitors?
Brother Industries' ROC % of 8.02% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. Brother Industries' value of 8.02% is 53.3% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.23, based on 3,039 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. Brother Industries's current ROC % of 8.02% is 53.3% 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 Brother Industries and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brother Industries's current ROC % is 8.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brother Industries stock overvalued right now?
Based on GuruFocus' analysis, Brother Industries (BRTHF) is currently considered Significantly Overvalued. The stock's GF Value™ is $16.32, compared to a current price of $21.51 — trading 31.8% above its estimated fair value. The current ROC % is 8.02% and 53.3% above the Industrial Products industry median of 5.23. Brother Industries' overall GF Score™ is 75/100 with 5 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 Brother Industries (BRTHF), the current ROC % is 8.02% 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 Brother Industries (BRTHF) Overvalued in 2026?
Based on GuruFocus' analysis, Brother Industries stock appears to be overvalued.
The current stock price of $21.51 is trading 31.8% above its estimated GF Value™ of $16.32.
GuruFocus considers Brother Industries to be Significantly Overvalued.
Key valuation signals for BRTHF:
ROC %: 8.02%
GF Value™: $16.32 vs. price of $21.51 (31.8% above fair value)
Industry Position: 53.3% above the Industrial Products median
No single metric tells the full story. See the BRTHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brother Industries Ltd is a Japan-based company mainly engaged in producing and selling office equipment, printing solutions, and related supplies. The company operates through seven segments. The Domino segment covers industrial printing equipment, while the Machinery segment handles machine tools, industrial sewing machines, and garment printers. The Network and Content segment involves karaoke equipment and IT systems, and the Nissei segment produces reducers and gears. The Others segment includes new construction and renovation of buildings, and investment in information systems. The Personal and Home segment makes household sewing machines, and Printing and Solutions focuses on telecommunications and printing equipment. It generates majority revenue from Printing & Solutions segment.
75GF Score
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