ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Otovo ASA's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -126.81%.
As of today (2026-06-28), Otovo ASA's WACC % is 8.71%. Otovo ASA's ROC % is -114.59% (calculated using TTM income statement data).
Otovo ASA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Otovo ASA (FRA:89K0) 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, Otovo ASA's WACC % is 8.71%. Otovo ASA's ROC % is -114.59% (calculated using TTM income statement data).
Otovo ASA 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.
Otovo ASA ROC % Related Terms
Otovo ASA ROC % Historical Data
* Premium members only.
The historical data trend for Otovo ASA'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.
Otovo ASA (FRA:89K0) has a ROC % of -126.81% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Otovo ASA and its competitors.
Is Otovo ASA's ROC % too high?
Otovo ASA's current ROC % is -126.81%. Overall, Otovo ASA has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Otovo ASA's ROC % compare to FSLR and NXT?
Otovo ASA's ROC % of -126.81% 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 Otovo ASA 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. Otovo ASA's current ROC % is -126.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otovo ASA stock overvalued right now?
Based on GuruFocus' analysis, Otovo ASA (FRA:89K0) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.64, compared to a current price of €1.08 — trading 68% above its estimated fair value. The current ROC % is -126.81%. Otovo ASA's overall GF Score™ is 54/100 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 Otovo ASA (FRA:89K0), the current ROC % is -126.81% 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 Otovo ASA (FRA:89K0) Overvalued in 2026?
Based on GuruFocus' analysis, Otovo ASA stock appears to be overvalued.
The current stock price of €1.08 is trading 68% above its estimated GF Value™ of €0.64.
GuruFocus considers Otovo ASA to be Significantly Overvalued.
Key valuation signals for FRA:89K0:
ROC %: -126.81%
GF Value™: €0.64 vs. price of €1.08 (68% above fair value)
No single metric tells the full story. See the FRA:89K0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Otovo ASA is engaged in the residential solar energy industry, focusing on the sale, installation, and servicing of home energy products. The group operates through three reportable segments: Newbuild, Recurring Services, and Field Services. The Newbuild segment involves the sale and installation of home energy products, including solar panels, either directly to end customers or through associated entities. The Recurring Services segment includes membership-based services such as maintenance, grid services, electricity provision, and rental of home energy products, along with service-related fees. The Field Services segment provides installation, maintenance, and other service activities related to home energy products for both residential and business customers.
54GF Score
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