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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. EVI Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.14%.
As of today (2026-08-20), EVI Industries's WACC % is 6.66%. EVI Industries's ROC % is 4.25% (calculated using TTM income statement data).
EVI Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, EVI Industries's WACC % is 6.66%. EVI Industries's ROC % is 4.25% (calculated using TTM income statement data).
EVI Industries 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.
EVI Industries ROC % Related Terms
EVI Industries ROC % Historical Data
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The historical data trend for EVI Industries'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.
EVI Industries (EVI) has a ROC % of 2.14% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on EVI Industries and its competitors.
Is EVI Industries' ROC % too high?
EVI Industries' current ROC % is 2.14%. The Industrial Distribution industry median ROC % is 6.03. EVI Industries' value of 2.14% is 64.5% below this industry median. Overall, EVI Industries has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EVI Industries' ROC % compare to TLIH and WXM?
EVI Industries' ROC % of 2.14% can be compared against companies in the Industrial Distribution industry. The industry median ROC % is 6.03. EVI Industries' value of 2.14% is 64.5% 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 an Industrial Distribution company?
The median ROC % among Industrial Distribution companies is 6.03, based on 158 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. EVI Industries's current ROC % of 2.14% is 64.5% 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 EVI Industries and its competitors. For the Industrial Distribution industry, the median ROC % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EVI Industries's current ROC % is 2.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EVI Industries stock overvalued right now?
Based on GuruFocus' analysis, EVI Industries (EVI) is currently considered Significantly Undervalued. The stock's GF Value™ is $24.56, compared to a current price of $15.78 — trading 35.7% below its estimated fair value. The current ROC % is 2.14% and 64.5% below the Industrial Distribution industry median of 6.03. EVI Industries' overall GF Score™ is 69/100 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 EVI Industries (EVI), the current ROC % is 2.14% 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 EVI Industries (EVI) Overvalued in 2026?
Based on GuruFocus' analysis, EVI Industries stock appears to be undervalued.
The current stock price of $15.78 is trading 35.7% below its estimated GF Value™ of $24.56.
GuruFocus considers EVI Industries to be Significantly Undervalued.
Key valuation signals for EVI:
ROC %: 2.14%
GF Value™: $24.56 vs. price of $15.78 (35.7% below fair value)
Industry Position: 64.5% below the Industrial Distribution median
No single metric tells the full story. See the EVI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EVI Industries Inc is a value-added distributor and service provider in the commercial laundry industry. It sells and leases commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. The company supports its equipment offerings with installation, maintenance, and repair services through a large network of trained technicians. It serves a wide range of customers, including commercial, industrial, institutional, government, and retail sectors. Geographically, the company serves various countries including United States, Canada, the Caribbean, and Latin America.
69GF Score
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