ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Compagnie Financiere Richemont's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 16.18%.
As of today (2026-06-24), Compagnie Financiere Richemont's WACC % is 10.18%. Compagnie Financiere Richemont's ROC % is 16.76% (calculated using TTM income statement data).
Compagnie Financiere Richemont 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, Compagnie Financiere Richemont's WACC % is 10.18%. Compagnie Financiere Richemont's ROC % is 16.76% (calculated using TTM income statement data).
Compagnie Financiere Richemont 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.
Compagnie Financiere Richemont ROC % Related Terms
Compagnie Financiere Richemont ROC % Historical Data
* 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 (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.
Compagnie Financiere Richemont (CFRHF) has a ROC % of 16.18% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Compagnie Financiere Richemont and its competitors.
Is Compagnie Financiere Richemont's ROC % too high?
Compagnie Financiere Richemont's current ROC % is 16.18%. The Retail - Cyclical industry median ROC % is 4.36. Compagnie Financiere Richemont's value of 16.18% is 271.1% above this industry median. Overall, Compagnie Financiere Richemont has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Compagnie Financiere Richemont's ROC % compare to TPR and SIG?
Compagnie Financiere Richemont's ROC % of 16.18% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.36. Compagnie Financiere Richemont's value of 16.18% is 271.1% 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 Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.36, based on 1,114 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. Compagnie Financiere Richemont's current ROC % of 16.18% is 271.1% 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 Compagnie Financiere Richemont and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compagnie Financiere Richemont's current ROC % is 16.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compagnie Financiere Richemont stock overvalued right now?
Based on GuruFocus' analysis, Compagnie Financiere Richemont (CFRHF) is currently considered Modestly Overvalued. The stock's GF Value™ is $185.98, compared to a current price of $229.86 — trading 23.6% above its estimated fair value. The current ROC % is 16.18% and 271.1% above the Retail - Cyclical industry median of 4.36. Compagnie Financiere Richemont's overall GF Score™ is 92/100 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 Compagnie Financiere Richemont (CFRHF), the current ROC % is 16.18% 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 Compagnie Financiere Richemont (CFRHF) Overvalued in 2026?
Based on GuruFocus' analysis, Compagnie Financiere Richemont stock appears to be overvalued.
The current stock price of $229.86 is trading 23.6% above its estimated GF Value™ of $185.98.
GuruFocus considers Compagnie Financiere Richemont to be Modestly Overvalued.
Key valuation signals for CFRHF:
ROC %: 16.18%
GF Value™: $185.98 vs. price of $229.86 (23.6% above fair value)
Industry Position: 271.1% above the Retail - Cyclical median
No single metric tells the full story. See the CFRHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compagnie Financiere Richemont Business Description
Richemont is a luxury goods conglomerate with 20 brands. Jewelry and watch brands make up 87% of sales, but the group is also active in accessories, writing instruments, clothing, and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for over 70% of revenue and the vast majority of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, Chloe, and Montblanc.
92GF Score
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