ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Colabor Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 2.83%.
As of today (2026-06-25), Colabor Group's WACC % is 6.34%. Colabor Group's ROC % is 1.60% (calculated using TTM income statement data).
Colabor Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Colabor Group (OTCPK:COLFF) 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, Colabor Group's WACC % is 6.34%. Colabor Group's ROC % is 1.60% (calculated using TTM income statement data).
Colabor Group 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.
Colabor Group ROC % Related Terms
Colabor Group ROC % Historical Data
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The historical data trend for Colabor Group'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 (Sep. 2025) 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.
Colabor Group (COLFF) has a ROC % of 2.83% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Colabor Group and its competitors.
Is Colabor Group's ROC % too high?
Colabor Group's current ROC % is 2.83%. The Retail - Defensive industry median ROC % is 5.54. Colabor Group's value of 2.83% is 48.9% below this industry median.
How does Colabor Group's ROC % compare to MCLE and AIXN?
Colabor Group's ROC % of 2.83% can be compared against companies in the Retail - Defensive industry. The industry median ROC % is 5.54. Colabor Group's value of 2.83% is 48.9% below 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 - Defensive company?
The median ROC % among Retail - Defensive companies is 5.54, based on 309 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. Colabor Group's current ROC % of 2.83% is 48.9% below 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 Colabor Group and its competitors. For the Retail - Defensive industry, the median ROC % is 5.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Colabor Group's current ROC % is 2.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Colabor Group stock overvalued right now?
Based on GuruFocus' analysis, Colabor Group (COLFF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.89, compared to a current price of $0.00 — trading 100% below its estimated fair value. The current ROC % is 2.83% and 48.9% below the Retail - Defensive industry median of 5.54. 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 Colabor Group (COLFF), the current ROC % is 2.83% as of Sep. 2025. 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.
Colabor Group Inc is a wholesaler and distributor of food and related products in Canada. The company operates in two segments Distribution and the Wholesale segment. Its Distribution segment operations include the distribution of food products and related products in hotels, restaurants, and institutions (HRI) and the retail market. Its products such as meat, fish, and seafood (Specialty Distribution), as well as general food-related products (Broadline Distribution), and the Wholesale segment's operations, include the sale of general food-related products to distributors from its distribution center in Boucherville. The company generates maximum revenue from the Distribution segment.
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