ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. CNS Pharmaceuticals's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -2,403.38%.
As of today (2026-06-27), CNS Pharmaceuticals's WACC % is 19.92%. CNS Pharmaceuticals's ROC % is -2362.56% (calculated using TTM income statement data).
CNS Pharmaceuticals earns returns that do not match up to its cost of capital. It will destroy value as it grows.
CNS Pharmaceuticals (NAS:CNSP) 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, CNS Pharmaceuticals's WACC % is 19.92%. CNS Pharmaceuticals's ROC % is -2362.56% (calculated using TTM income statement data).
CNS Pharmaceuticals 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.
CNS Pharmaceuticals ROC % Related Terms
CNS Pharmaceuticals ROC % Historical Data
* Premium members only.
The historical data trend for CNS Pharmaceuticals'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.
CNS Pharmaceuticals (CNSP) has a ROC % of -2,403.38% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CNS Pharmaceuticals and its competitors.
Is CNS Pharmaceuticals' ROC % too high?
CNS Pharmaceuticals' current ROC % is -2,403.38%. Overall, CNS Pharmaceuticals has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does CNS Pharmaceuticals' ROC % compare to SYBX and ELAB?
CNS Pharmaceuticals' ROC % of -2,403.38% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 CNS Pharmaceuticals and its competitors. CNS Pharmaceuticals's current ROC % is -2,403.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CNS Pharmaceuticals stock overvalued right now?
CNS Pharmaceuticals (CNSP) has a current ROC % of -2,403.38%. The current ROC % is -2,403.38%. CNS Pharmaceuticals' overall GF Score™ is 30/100 with 1 warning sign 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 CNS Pharmaceuticals (CNSP), the current ROC % is -2,403.38% 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.
CNS Pharmaceuticals Inc is a biotechnology company focused on developing therapies for serious diseases in neurology and oncology. The company is building a high-value pipeline for neurology and oncology indications. Its new corporate includes pivoting from a singular focus on glioblastoma multiforme and exploring out-licensing opportunities for its legacy assets, TPI 287 and Berubicin.
30GF Score
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