ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Smiths News's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 46.25%.
As of today (2026-06-26), Smiths News's WACC % is 5.79%. Smiths News's ROC % is 50.06% (calculated using TTM income statement data).
Smiths News 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.
Smiths News (CHIX:SNWSl) 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, Smiths News's WACC % is 5.79%. Smiths News's ROC % is 50.06% (calculated using TTM income statement data).
Smiths News 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.
Smiths News ROC % Related Terms
Smiths News ROC % Historical Data
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The historical data trend for Smiths News'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 (Feb. 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.
Smiths News (CHIX:SNWSL) has a ROC % of 46.25% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Smiths News and its competitors.
Is Smiths News' ROC % too high?
Smiths News' current ROC % is 46.25%. The Media - Diversified industry median ROC % is 1.41. Smiths News' value of 46.25% is 3191.8% above this industry median. Overall, Smiths News has a GF Score™ of 53/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smiths News' ROC % compare to NYT and WLY?
Smiths News' ROC % of 46.25% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.41. Smiths News' value of 46.25% is 3191.8% 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.41, based on 1,016 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. Smiths News's current ROC % of 46.25% is 3191.8% 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 Smiths News and its competitors. For the Media - Diversified industry, the median ROC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smiths News's current ROC % is 46.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smiths News stock overvalued right now?
Based on GuruFocus' analysis, Smiths News (CHIX:SNWSL) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.54, compared to a current price of £0.67 — trading 24.4% above its estimated fair value. The current ROC % is 46.25% and 3191.8% above the Media - Diversified industry median of 1.41. Smiths News' overall GF Score™ is 53/100 with 4 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 Smiths News (CHIX:SNWSL), the current ROC % is 46.25% as of Feb. 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 Smiths News (CHIX:SNWSL) Overvalued in 2026?
Based on GuruFocus' analysis, Smiths News stock appears to be overvalued.
The current stock price of £0.67 is trading 24.4% above its estimated GF Value™ of £0.54.
GuruFocus considers Smiths News to be Modestly Overvalued.
Key valuation signals for CHIX:SNWSL:
ROC %: 46.25%
GF Value™: £0.54 vs. price of £0.67 (24.4% above fair value)
Industry Position: 3191.8% above the Media - Diversified median
No single metric tells the full story. See the CHIX:SNWSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smiths News PLC is a UK wholesaler of newspapers and magazines, providing nationwide early-morning distribution and logistics services. The company supplies newspapers, magazines, and related products to a wide network of retail outlets, supported by integrated services such as warehousing, pick-and-pack, returns collection, recycling, invoicing, and market insight. Operating through a hub-and-spoke distribution network across England and Wales, Smiths News delivers seven days a week, reaching locations from urban centres to remote rural communities, and also offers recycling and waste management solutions through its dedicated recycling operations.
53GF Score
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