ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Columbia Sportswear Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.79%.
As of today (2026-06-25), Columbia Sportswear Co's WACC % is 8.77%. Columbia Sportswear Co's ROC % is 10.62% (calculated using TTM income statement data).
Columbia Sportswear Co 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.
Columbia Sportswear Co (FRA:CUW) 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, Columbia Sportswear Co's WACC % is 8.77%. Columbia Sportswear Co's ROC % is 10.62% (calculated using TTM income statement data).
Columbia Sportswear Co 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.
* 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.
Columbia Sportswear Co (FRA:CUW) has a ROC % of 7.79% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Columbia Sportswear Co and its competitors.
Is Columbia Sportswear Co's ROC % too high?
Columbia Sportswear Co's current ROC % is 7.79%. The Manufacturing - Apparel & Accessories industry median ROC % is 2.90. Columbia Sportswear Co's value of 7.79% is 168.6% above this industry median. Overall, Columbia Sportswear Co has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Columbia Sportswear Co's ROC % compare to ZGN and KTB?
Columbia Sportswear Co's ROC % of 7.79% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 2.90. Columbia Sportswear Co's value of 7.79% is 168.6% 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 Manufacturing - Apparel & Accessories company?
The median ROC % among Manufacturing - Apparel & Accessories companies is 2.90, based on 1,049 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. Columbia Sportswear Co's current ROC % of 7.79% is 168.6% 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 Columbia Sportswear Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Columbia Sportswear Co's current ROC % is 7.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Columbia Sportswear Co stock overvalued right now?
Columbia Sportswear Co (FRA:CUW) has a current ROC % of 7.79%. The stock's GF Value™ is €73.13, compared to a current price of €55.50 — trading 24.1% below its estimated fair value. The current ROC % is 7.79% and 168.6% above the Manufacturing - Apparel & Accessories industry median of 2.90. Columbia Sportswear Co's overall GF Score™ is 82/100 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 Columbia Sportswear Co (FRA:CUW), the current ROC % is 7.79% 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 Columbia Sportswear Co (FRA:CUW) Overvalued in 2026?
Based on GuruFocus' analysis, Columbia Sportswear Co stock appears to be undervalued.
The current stock price of €55.50 is trading 24.1% below its estimated GF Value™ of €73.13.
Key valuation signals for FRA:CUW:
ROC %: 7.79%
GF Value™: €73.13 vs. price of €55.50 (24.1% below fair value)
Industry Position: 168.6% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the FRA:CUW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Columbia Sportswear Co makes outdoor and active-lifestyle apparel, footwear, equipment, and accessories that it sells under four primary brands: Columbia, Sorel, Mountain Hardwear, and prAna. The majority of sales are in the United States, but the company also has remarkable sales in its three other geographic segments: Latin American and Asia-Pacific; Europe, Middle East, and Africa; and Canada. The majority of sales are through wholesale channels, including sporting goods and department stores, but the company also operates its own branded stores in each of its geographic segments. It sources products from around the world and uses contract manufacturers outside the United States, predominantly in Asia to manufacture its various products.
82GF Score
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