ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Oriental Weavers Carpet Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.61%.
As of today (2026-06-27), Oriental Weavers Carpet Co's WACC % is 8.70%. Oriental Weavers Carpet Co's ROC % is 7.14% (calculated using TTM income statement data).
Oriental Weavers Carpet Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Oriental Weavers Carpet Co (CAI:ORWE) 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, Oriental Weavers Carpet Co's WACC % is 8.70%. Oriental Weavers Carpet Co's ROC % is 7.14% (calculated using TTM income statement data).
Oriental Weavers Carpet Co 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.
* 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.
Oriental Weavers Carpet Co (CAI:ORWE) has a ROC % of 7.61% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Oriental Weavers Carpet Co and its competitors.
Is Oriental Weavers Carpet Co's ROC % too high?
Oriental Weavers Carpet Co's current ROC % is 7.61%. The Manufacturing - Apparel & Accessories industry median ROC % is 2.91. Oriental Weavers Carpet Co's value of 7.61% is 162% above this industry median. Overall, Oriental Weavers Carpet Co has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Oriental Weavers Carpet Co's ROC % compare to AIN?
Oriental Weavers Carpet Co's ROC % of 7.61% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 2.91. Oriental Weavers Carpet Co's value of 7.61% is 162% 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 Manufacturing - Apparel & Accessories company?
The median ROC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,048 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. Oriental Weavers Carpet Co's current ROC % of 7.61% is 162% 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 Oriental Weavers Carpet Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oriental Weavers Carpet Co's current ROC % is 7.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oriental Weavers Carpet Co stock overvalued right now?
Based on GuruFocus' analysis, Oriental Weavers Carpet Co (CAI:ORWE) is currently considered Modestly Undervalued. The stock's GF Value™ is E£28.53, compared to a current price of E£22.84 — trading 19.9% below its estimated fair value. The current ROC % is 7.61% and 162% above the Manufacturing - Apparel & Accessories industry median of 2.91. Oriental Weavers Carpet Co's overall GF Score™ is 81/100 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 Oriental Weavers Carpet Co (CAI:ORWE), the current ROC % is 7.61% 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 Oriental Weavers Carpet Co (CAI:ORWE) Overvalued in 2026?
Based on GuruFocus' analysis, Oriental Weavers Carpet Co stock appears to be undervalued.
The current stock price of E£22.84 is trading 19.9% below its estimated GF Value™ of E£28.53.
GuruFocus considers Oriental Weavers Carpet Co to be Modestly Undervalued.
Key valuation signals for CAI:ORWE:
ROC %: 7.61%
GF Value™: E£28.53 vs. price of E£22.84 (19.9% below fair value)
Industry Position: 162% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the CAI:ORWE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oriental Weavers Carpet Co is principally engaged in the production and sale of machine-woven carpets and rugs for the residential, commercial, and hospitality industries. The company offers various lines of area rugs, as well as manufactures woven goblins, door, and kitchen rugs, rubber-backed bathroom mats, multilevel textured mats for outdoor applications, and tapestries. The firm also produces custom-made rugs and carpets, contracts to fulfill the carpeting needs of homes, hotels, and offices, and provides related carpet care services. The segments of the group are Woven, where the majority of revenue is derived, Tufted, and Non-woven. In addition to sales made within the country, the company also exports its products to Europe, Africa, America and Canada, Asia, and Arab countries.
81GF Score
Get the complete analysis for CAI:ORWE
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
CAI:ORWE has been successfully added to your 
