ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Churchill China's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 6.11%.
As of today (2026-06-29), Churchill China's WACC % is 13.99%. Churchill China's ROC % is 6.38% (calculated using TTM income statement data).
Churchill China earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Churchill China (FRA:EQW) 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, Churchill China's WACC % is 13.99%. Churchill China's ROC % is 6.38% (calculated using TTM income statement data).
Churchill China 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.
Churchill China ROC % Related Terms
Churchill China ROC % Historical Data
* Premium members only.
The historical data trend for Churchill China'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.
Churchill China (FRA:EQW) has a ROC % of 6.11% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Churchill China and its competitors.
Is Churchill China's ROC % too high?
Churchill China's current ROC % is 6.11%. The Furnishings, Fixtures & Appliances industry median ROC % is 3.45. Churchill China's value of 6.11% is 77.1% above this industry median. Overall, Churchill China has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Churchill China's ROC % compare to SN and SGI?
Churchill China's ROC % of 6.11% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROC % is 3.45. Churchill China's value of 6.11% is 77.1% 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 Furnishings, Fixtures & Appliances company?
The median ROC % among Furnishings, Fixtures & Appliances companies is 3.45, based on 427 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. Churchill China's current ROC % of 6.11% is 77.1% 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 Churchill China and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROC % is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Churchill China's current ROC % is 6.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Churchill China stock overvalued right now?
Churchill China (FRA:EQW) has a current ROC % of 6.11%. The stock's GF Value™ is €10.85, compared to a current price of €3.76 — trading 65.3% below its estimated fair value. The current ROC % is 6.11% and 77.1% above the Furnishings, Fixtures & Appliances industry median of 3.45. Churchill China's overall GF Score™ is 74/100 with 4 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 Churchill China (FRA:EQW), the current ROC % is 6.11% 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 Churchill China (FRA:EQW) Overvalued in 2026?
Based on GuruFocus' analysis, Churchill China stock appears to be undervalued.
The current stock price of €3.76 is trading 65.3% below its estimated GF Value™ of €10.85.
Key valuation signals for FRA:EQW:
ROC %: 6.11%
GF Value™: €10.85 vs. price of €3.76 (65.3% below fair value)
Industry Position: 77.1% above the Furnishings, Fixtures & Appliances median
No single metric tells the full story. See the FRA:EQW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Churchill China PLC is a British pottery manufacturer. It is a manufacturer and distributor of tabletop products. Its customers include the pub, restaurant and hotel chains, sports and conference venues, health and education establishments and contract caterers. Its segments include Ceramics, the sale of ceramic tableware and complimentary items, and Materials, the sale of materials for the production of ceramics, to the tableware industry, majority of its revenue is generated from Ceramics segment. The company operates in the UK, Rest of Europe, USA and Rest of the World.
74GF Score
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