ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Shoe Zone's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -13.89%.
As of today (2026-06-26), Shoe Zone's WACC % is 4.16%. Shoe Zone's ROC % is 3.69% (calculated using TTM income statement data).
Shoe Zone earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Shoe Zone (FRA:86W) 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, Shoe Zone's WACC % is 4.16%. Shoe Zone's ROC % is 3.69% (calculated using TTM income statement data).
Shoe Zone 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.
Shoe Zone ROC % Related Terms
Shoe Zone ROC % Historical Data
* Premium members only.
The historical data trend for Shoe Zone'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 two times the semi-annual (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.
Shoe Zone (FRA:86W) has a ROC % of -13.89% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shoe Zone and its competitors.
Is Shoe Zone's ROC % too high?
Shoe Zone's current ROC % is -13.89%. Overall, Shoe Zone has a GF Score™ of 23/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shoe Zone's ROC % compare to TJX and ROST?
Shoe Zone's ROC % of -13.89% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.37. 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 - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.37, based on 1,113 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 Shoe Zone and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shoe Zone's current ROC % is -13.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shoe Zone stock overvalued right now?
Based on GuruFocus' analysis, Shoe Zone (FRA:86W) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.57, compared to a current price of €0.43 — trading 24.2% below its estimated fair value. The current ROC % is -13.89%. Shoe Zone's overall GF Score™ is 23/100 with 4 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 Shoe Zone (FRA:86W), the current ROC % is -13.89% 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 Shoe Zone (FRA:86W) Overvalued in 2026?
Based on GuruFocus' analysis, Shoe Zone stock appears to be undervalued.
The current stock price of €0.43 is trading 24.2% below its estimated GF Value™ of €0.57.
GuruFocus considers Shoe Zone to be Modestly Undervalued.
Key valuation signals for FRA:86W:
ROC %: -13.89%
GF Value™: €0.57 vs. price of €0.43 (24.2% below fair value)
No single metric tells the full story. See the FRA:86W stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shoe Zone PLC operates as a footwear retailer offering a wide range and a variety of shoes for all ages, it functions with over 500 stores across the UK. The group has a single distribution center which is located in Leicester, England. Its online offering combined with its store portfolio allows customers to shop via multiple channels. Shoe zone operates in the United Kingdom.
23GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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