ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nelly Group AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.54%.
As of today (2026-06-26), Nelly Group AB's WACC % is 10.50%. Nelly Group AB's ROC % is 22.62% (calculated using TTM income statement data).
Nelly Group AB generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Nelly Group AB (FRA:CD20) 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, Nelly Group AB's WACC % is 10.50%. Nelly Group AB's ROC % is 22.62% (calculated using TTM income statement data).
Nelly Group AB generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Nelly Group AB ROC % Related Terms
Nelly Group AB ROC % Historical Data
* Premium members only.
The historical data trend for Nelly Group AB'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.
Nelly Group AB (FRA:CD20) has a ROC % of 4.54% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nelly Group AB and its competitors.
Is Nelly Group AB's ROC % too high?
Nelly Group AB's current ROC % is 4.54%. The Retail - Cyclical industry median ROC % is 4.37. Nelly Group AB's value of 4.54% is 3.9% above this industry median. Overall, Nelly Group AB has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nelly Group AB's ROC % compare to TJX and ROST?
Nelly Group AB's ROC % of 4.54% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.37. Nelly Group AB's value of 4.54% is 3.9% 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 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. Nelly Group AB's current ROC % of 4.54% is 3.9% 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 Nelly Group AB 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. Nelly Group AB's current ROC % is 4.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nelly Group AB stock overvalued right now?
Based on GuruFocus' analysis, Nelly Group AB (FRA:CD20) is currently considered Fairly Valued. The stock's GF Value™ is €3.01, compared to a current price of €3.07 — trading 2% above its estimated fair value. The current ROC % is 4.54% and 3.9% above the Retail - Cyclical industry median of 4.37. Nelly Group AB's overall GF Score™ is 60/100 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 Nelly Group AB (FRA:CD20), the current ROC % is 4.54% 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 Nelly Group AB (FRA:CD20) Overvalued in 2026?
Based on GuruFocus' analysis, Nelly Group AB stock appears to be overvalued.
The current stock price of €3.07 is trading 2% above its estimated GF Value™ of €3.01.
GuruFocus considers Nelly Group AB to be Fairly Valued.
Key valuation signals for FRA:CD20:
ROC %: 4.54%
GF Value™: €3.01 vs. price of €3.07 (2% above fair value)
Industry Position: 3.9% above the Retail - Cyclical median
No single metric tells the full story. See the FRA:CD20 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nelly Group AB is active in the retail industry. The company offers a wide range of fashion and accessories to mainly young women in the Nordic region. At the core is the own brand Nelly, which is marketed and sold in combination with a well-composed portfolio of external brands. The company sells directly to its target group via digital customers, mainly Nelly.com. Geographically, the company generates a majority of its revenue from Sweden, and the rest from Other Nordic regions, and the Rest of the world.
60GF Score
Get the complete analysis for FRA:CD20
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:CD20 has been successfully added to your 
