ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. EM Systems Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.45%.
As of today (2026-06-26), EM Systems Co's WACC % is 2.90%. EM Systems Co's ROC % is 8.90% (calculated using TTM income statement data).
EM Systems 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.
EM Systems Co (FRA:EMO) 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, EM Systems Co's WACC % is 2.90%. EM Systems Co's ROC % is 8.90% (calculated using TTM income statement data).
EM Systems 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.
EM Systems Co ROC % Related Terms
EM Systems Co ROC % Historical Data
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The historical data trend for EM Systems Co'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.
EM Systems Co (FRA:EMO) has a ROC % of 3.45% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on EM Systems Co and its competitors.
Is EM Systems Co's ROC % too high?
EM Systems Co's current ROC % is 3.45%. The Healthcare Providers & Services industry median ROC % is 3.06. EM Systems Co's value of 3.45% is 12.7% above this industry median. Overall, EM Systems Co has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does EM Systems Co's ROC % compare to VEEV and BTSG?
EM Systems Co's ROC % of 3.45% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.06. EM Systems Co's value of 3.45% is 12.7% 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 Healthcare Providers & Services company?
The median ROC % among Healthcare Providers & Services companies is 3.06, based on 671 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. EM Systems Co's current ROC % of 3.45% is 12.7% 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 EM Systems Co and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EM Systems Co's current ROC % is 3.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EM Systems Co stock overvalued right now?
EM Systems Co (FRA:EMO) has a current ROC % of 3.45%. The stock's GF Value™ is €3.96, compared to a current price of €2.58 — trading 34.8% below its estimated fair value. The current ROC % is 3.45% and 12.7% above the Healthcare Providers & Services industry median of 3.06. EM Systems Co's overall GF Score™ is 76/100 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 EM Systems Co (FRA:EMO), the current ROC % is 3.45% 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 EM Systems Co (FRA:EMO) Overvalued in 2026?
Based on GuruFocus' analysis, EM Systems Co stock appears to be undervalued.
The current stock price of €2.58 is trading 34.8% below its estimated GF Value™ of €3.96.
Key valuation signals for FRA:EMO:
ROC %: 3.45%
GF Value™: €3.96 vs. price of €2.58 (34.8% below fair value)
Industry Position: 12.7% above the Healthcare Providers & Services median
No single metric tells the full story. See the FRA:EMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EM Systems Co Ltd is a Japan-based company that develops, sells, and maintains systems for the medical (clinics and insurance pharmacies) and nursing/welfare industries. It operates its business in three divisions: Pharmacy System Business develops and sells systems for pharmacies, and provides related supplies and maintenance services; Medical system involved in the development and sales of medical office administration computer systems for medical institutions and clinics; Nursing Care/Welfare Systems Business products are systems for nursing care/welfare service providers and medical and nursing care collaboration solutions; Other businesses operates through its subsidiray that provides promotes cashless payments for clinics and pharmacies and Others services.
76GF Score
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