ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. M+S Hidravlik AD's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.22%.
As of today (2026-07-07), M+S Hidravlik AD's WACC % is 10.40%. M+S Hidravlik AD's ROC % is 8.06% (calculated using TTM income statement data).
M+S Hidravlik AD earns returns that do not match up to its cost of capital. It will destroy value as it grows.
M+S Hidravlik AD (FRA:8Q3) 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, M+S Hidravlik AD's WACC % is 10.40%. M+S Hidravlik AD's ROC % is 8.06% (calculated using TTM income statement data).
M+S Hidravlik AD 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.
M+S Hidravlik AD ROC % Related Terms
M+S Hidravlik AD ROC % Historical Data
* Premium members only.
The historical data trend for M+S Hidravlik AD'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 (Dec. 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.
M+S Hidravlik AD (FRA:8Q3) has a ROC % of 1.22% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on M+S Hidravlik AD and its competitors.
Is M+S Hidravlik AD's ROC % too high?
M+S Hidravlik AD's current ROC % is 1.22%. The Industrial Products industry median ROC % is 5.20. M+S Hidravlik AD's value of 1.22% is 76.5% below this industry median. Overall, M+S Hidravlik AD has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does M+S Hidravlik AD's ROC % compare to GEV and ETN?
M+S Hidravlik AD's ROC % of 1.22% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.20. M+S Hidravlik AD's value of 1.22% is 76.5% 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 Products company?
The median ROC % among Industrial Products companies is 5.20, based on 3,028 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. M+S Hidravlik AD's current ROC % of 1.22% is 76.5% 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 M+S Hidravlik AD and its competitors. For the Industrial Products industry, the median ROC % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. M+S Hidravlik AD's current ROC % is 1.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is M+S Hidravlik AD stock overvalued right now?
M+S Hidravlik AD (FRA:8Q3) has a current ROC % of 1.22%. The stock's GF Value™ is €6.85, compared to a current price of €4.76 — trading 30.5% below its estimated fair value. The current ROC % is 1.22% and 76.5% below the Industrial Products industry median of 5.20. M+S Hidravlik AD's overall GF Score™ is 70/100 with 7 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 M+S Hidravlik AD (FRA:8Q3), the current ROC % is 1.22% as of Dec. 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 M+S Hidravlik AD (FRA:8Q3) Overvalued in 2026?
Based on GuruFocus' analysis, M+S Hidravlik AD stock appears to be undervalued.
The current stock price of €4.76 is trading 30.5% below its estimated GF Value™ of €6.85.
Key valuation signals for FRA:8Q3:
ROC %: 1.22%
GF Value™: €6.85 vs. price of €4.76 (30.5% below fair value)
Industry Position: 76.5% below the Industrial Products median
No single metric tells the full story. See the FRA:8Q3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
M+S Hidravlik AD is a Bulgaria-based company that is principally engaged in the industrial equipment industry. It distributes and repairs hydraulic motors, steering units, valves, brakes, and accessories. The company's product range includes hydraulic motors, hydraulic disc brakes, crossover, switch and relief valves for hydraulic motors, as well as hydrostatic steering units and accessories for steering units.
70GF Score
Get the complete analysis for FRA:8Q3
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:8Q3 has been successfully added to your 
