ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. CPI Aerostructures's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 10.41%.
As of today (2026-06-25), CPI Aerostructures's WACC % is 5.97%. CPI Aerostructures's ROC % is 5.47% (calculated using TTM income statement data).
CPI Aerostructures earns returns that do not match up to its cost of capital. It will destroy value as it grows.
CPI Aerostructures (AMEX:CVU) 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, CPI Aerostructures's WACC % is 5.97%. CPI Aerostructures's ROC % is 5.47% (calculated using TTM income statement data).
CPI Aerostructures 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.
CPI Aerostructures ROC % Related Terms
CPI Aerostructures ROC % Historical Data
* Premium members only.
The historical data trend for CPI Aerostructures'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.
CPI Aerostructures (CVU) has a ROC % of 10.41% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CPI Aerostructures and its competitors.
Is CPI Aerostructures' ROC % too high?
CPI Aerostructures' current ROC % is 10.41%. The Aerospace & Defense industry median ROC % is 4.45. CPI Aerostructures' value of 10.41% is 133.9% above this industry median. Overall, CPI Aerostructures has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CPI Aerostructures' ROC % compare to XTIA and OPXS?
CPI Aerostructures' ROC % of 10.41% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.45. CPI Aerostructures' value of 10.41% is 133.9% 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 an Aerospace & Defense company?
The median ROC % among Aerospace & Defense companies is 4.45, based on 351 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. CPI Aerostructures's current ROC % of 10.41% is 133.9% 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 CPI Aerostructures and its competitors. For the Aerospace & Defense industry, the median ROC % is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CPI Aerostructures's current ROC % is 10.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CPI Aerostructures stock overvalued right now?
Based on GuruFocus' analysis, CPI Aerostructures (CVU) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.74, compared to a current price of $4.76 — trading 73.7% above its estimated fair value. The current ROC % is 10.41% and 133.9% above the Aerospace & Defense industry median of 4.45. CPI Aerostructures' overall GF Score™ is 49/100 with 8 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 CPI Aerostructures (CVU), the current ROC % is 10.41% 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 CPI Aerostructures (CVU) Overvalued in 2026?
Based on GuruFocus' analysis, CPI Aerostructures stock appears to be overvalued.
The current stock price of $4.76 is trading 73.7% above its estimated GF Value™ of $2.74.
GuruFocus considers CPI Aerostructures to be Significantly Overvalued.
Key valuation signals for CVU:
ROC %: 10.41%
GF Value™: $2.74 vs. price of $4.76 (73.7% above fair value)
Industry Position: 133.9% above the Aerospace & Defense median
No single metric tells the full story. See the CVU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CPI Aerostructures Inc is engaged in the manufacturing of structural aircraft parts for fixed-wing aircraft and helicopters in both the commercial and defense markets in the United States. It also provides engineering, program management, supply chain management and kitting, and Maintenance Repair and Overhaul (MRO) services. CPI also acts as a subcontractor to prime aircraft manufacturers in the production of commercial aircraft parts. CPI Aero supplies the E-2D Advanced Hawkeye surveillance aircraft, the A-10 Thunderbolt attack jet, the Gulfstream G650, the UH-60 BLACK HAWK helicopter, and the S-92 helicopter, and others.
49GF Score
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