ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Maxeon Solar Technologies's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was -53.84%.
As of today (2026-06-28), Maxeon Solar Technologies's WACC % is 12.59%. Maxeon Solar Technologies's ROC % is -137.84% (calculated using TTM income statement data).
Maxeon Solar Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Maxeon Solar Technologies (FRA:5QJ1) 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, Maxeon Solar Technologies's WACC % is 12.59%. Maxeon Solar Technologies's ROC % is -137.84% (calculated using TTM income statement data).
Maxeon Solar Technologies 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.
* 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 (Jun. 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.
Maxeon Solar Technologies (FRA:5QJ1) has a ROC % of -53.84% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Maxeon Solar Technologies and its competitors.
Is Maxeon Solar Technologies' ROC % too high?
Maxeon Solar Technologies' current ROC % is -53.84%. Overall, Maxeon Solar Technologies has a GF Score™ of 32/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Maxeon Solar Technologies' ROC % compare to SUNE and APWL?
Maxeon Solar Technologies' ROC % of -53.84% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.74. 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 Semiconductors company?
The median ROC % among Semiconductors companies is 3.74, based on 1,010 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. 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 Maxeon Solar Technologies and its competitors. For the Semiconductors industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Maxeon Solar Technologies's current ROC % is -53.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Maxeon Solar Technologies stock overvalued right now?
Based on GuruFocus' analysis, Maxeon Solar Technologies (FRA:5QJ1) is currently considered Possible Value Trap. The stock's GF Value™ is €3.27, compared to a current price of €0.25 — trading 92.4% below its estimated fair value. The current ROC % is -53.84%. Maxeon Solar Technologies' overall GF Score™ is 32/100 with 9 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 Maxeon Solar Technologies (FRA:5QJ1), the current ROC % is -53.84% as of Jun. 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.
Is Maxeon Solar Technologies (FRA:5QJ1) Overvalued in 2026?
Based on GuruFocus' analysis, Maxeon Solar Technologies stock appears to be undervalued.
The current stock price of €0.25 is trading 92.4% below its estimated GF Value™ of €3.27.
GuruFocus considers Maxeon Solar Technologies to be Possible Value Trap.
Key valuation signals for FRA:5QJ1:
ROC %: -53.84%
GF Value™: €3.27 vs. price of €0.25 (92.4% below fair value)
No single metric tells the full story. See the FRA:5QJ1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Maxeon Solar Technologies Ltd is engaged in the manufacturing and marketing of premium solar technology. It owns and operates solar cell and panel manufacturing facilities located in Malaysia, Mexico, and the Philippines. The company's primary products are the Maxeon line of interdigitated back contact (IBC) solar cells and panels, and the Performance line (formerly, P-Series) of shingled solar cells and panels. the Maxeon line of solar panels are the highest-efficiency solar panels on the market with an aesthetically pleasing design, and the Performance line of solar panels offers a high-value and cost-effective solution. It is targeted at residential and small-scale commercial customers across the globe. The company derives its revenue from the United States, Italy, and Rest of world.
32GF Score
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