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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 %. TMP Group SpA's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 4.37%.
As of today (2026-07-14), TMP Group SpA's WACC % is 14.55%. TMP Group SpA's ROC % is 4.08% (calculated using TTM income statement data).
TMP Group SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
TMP Group SpA (FRA:A72) 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, TMP Group SpA's WACC % is 14.55%. TMP Group SpA's ROC % is 4.08% (calculated using TTM income statement data).
TMP Group SpA 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.
TMP Group SpA ROC % Related Terms
TMP Group SpA ROC % Historical Data
* Premium members only.
The historical data trend for TMP Group SpA'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 (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.
TMP Group SpA (FRA:A72) has a ROC % of 4.37% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on TMP Group SpA and its competitors.
Is TMP Group SpA's ROC % too high?
TMP Group SpA's current ROC % is 4.37%. The Media - Diversified industry median ROC % is 1.39. TMP Group SpA's value of 4.37% is 214.4% above this industry median. Overall, TMP Group SpA has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does TMP Group SpA's ROC % compare to APP and OMC?
TMP Group SpA's ROC % of 4.37% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.39. TMP Group SpA's value of 4.37% is 214.4% above 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 a Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.39, based on 1,007 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. TMP Group SpA's current ROC % of 4.37% is 214.4% above 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 TMP Group SpA and its competitors. For the Media - Diversified industry, the median ROC % is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TMP Group SpA's current ROC % is 4.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TMP Group SpA stock overvalued right now?
TMP Group SpA (FRA:A72) has a current ROC % of 4.37%. The stock's GF Value™ is €1.80, compared to a current price of €2.90 — trading 61.1% above its estimated fair value. The current ROC % is 4.37% and 214.4% above the Media - Diversified industry median of 1.39. TMP Group SpA's overall GF Score™ is 55/100 with 3 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 TMP Group SpA (FRA:A72), the current ROC % is 4.37% 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 TMP Group SpA (FRA:A72) Overvalued in 2026?
Based on GuruFocus' analysis, TMP Group SpA stock appears to be overvalued.
The current stock price of €2.90 is trading 61.1% above its estimated GF Value™ of €1.80.
Key valuation signals for FRA:A72:
ROC %: 4.37%
GF Value™: €1.80 vs. price of €2.90 (61.1% above fair value)
Industry Position: 214.4% above the Media - Diversified median
No single metric tells the full story. See the FRA:A72 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TMP Group SpA operates as a media company. It supports companies in the manufacturing, Fintech, Sport, Fashion, and Design industries in the management of positioning projects, business innovation, identity, and digital transformation through Digital Marketing, Experience and Events, Production, and Metaverse and NFT activities.
55GF Score
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