ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ecotel Communication AG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.70%.
As of today (2026-06-30), Ecotel Communication AG's WACC % is 7.30%. Ecotel Communication AG's ROC % is 0.00% (calculated using TTM income statement data).
Ecotel Communication AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ecotel Communication AG (FRA:E4C) 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, Ecotel Communication AG's WACC % is 7.30%. Ecotel Communication AG's ROC % is 0.00% (calculated using TTM income statement data).
Ecotel Communication AG 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.
* 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.
Ecotel Communication AG (FRA:E4C) has a ROC % of 3.70% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ecotel Communication AG and its competitors.
Is Ecotel Communication AG's ROC % too high?
Ecotel Communication AG's current ROC % is 3.70%. The Telecommunication Services industry median ROC % is 4.53. Ecotel Communication AG's value of 3.70% is 18.3% below this industry median. Overall, Ecotel Communication AG has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Ecotel Communication AG's ROC % compare to TMUS and VZ?
Ecotel Communication AG's ROC % of 3.70% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.53. Ecotel Communication AG's value of 3.70% is 18.3% 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 a Telecommunication Services company?
The median ROC % among Telecommunication Services companies is 4.53, based on 363 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. Ecotel Communication AG's current ROC % of 3.70% is 18.3% 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 Ecotel Communication AG and its competitors. For the Telecommunication Services industry, the median ROC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ecotel Communication AG's current ROC % is 3.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ecotel Communication AG stock overvalued right now?
Ecotel Communication AG (FRA:E4C) has a current ROC % of 3.70%. The stock's GF Value™ is €13.94, compared to a current price of €6.85 — trading 50.9% below its estimated fair value. The current ROC % is 3.70% and 18.3% below the Telecommunication Services industry median of 4.53. Ecotel Communication AG'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 Ecotel Communication AG (FRA:E4C), the current ROC % is 3.70% 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 Ecotel Communication AG (FRA:E4C) Overvalued in 2026?
Based on GuruFocus' analysis, Ecotel Communication AG stock appears to be undervalued.
The current stock price of €6.85 is trading 50.9% below its estimated GF Value™ of €13.94.
Key valuation signals for FRA:E4C:
ROC %: 3.70%
GF Value™: €13.94 vs. price of €6.85 (50.9% below fair value)
Industry Position: 18.3% below the Telecommunication Services median
No single metric tells the full story. See the FRA:E4C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ecotel Communication AG is a telecommunication company operating in Germany that provides a solution to customers involved in the IT and telecommunication industry. The company operates under business segments that is Ecotel Business customers, Ecotel Wholesale, and Easybell, Majority of the firm's revenue comes from Ecotel Business customers which offers business customers throughout Germany an integrated product portfolio of voice and data services (ICT solutions). The firm's sales are mostly generated in Germany.
60GF Score
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