Gigaset AG (FRA:GGS) ROC %: -0.60% (As of Jun. 2025)


What is Gigaset AG ROC %?

Gigaset AG FRA:GGS ROC % is -0.60% as of Jun. 2025.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gigaset AG's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was -0.60%.

As of today (2026-06-24), Gigaset AG's WACC % is 0.14%. Gigaset AG's ROC % is -38.72% (calculated using TTM income statement data). Gigaset AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Gigaset AG  (FRA:GGS) 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, Gigaset AG's WACC % is 0.14%. Gigaset AG's ROC % is -38.72% (calculated using TTM income statement data). Gigaset 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.


Gigaset AG ROC % Related Terms


Gigaset AG ROC % Historical Data

* Premium members only.

The historical data trend for Gigaset AG'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.

Gigaset AG ROC % Chart

Gigaset AG Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.31 2.49 -1.41 -4.86 -41.67

Gigaset AG Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -12.50 19.59 -1.30 -82.08 -0.60

Gigaset AG ROC % Calculation

Gigaset AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=-12.442 * ( 1 - 0% )/( (23.655 + 36.061)/ 2 )
=-12.442/29.858
=-41.67 %

where

Gigaset AG's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2025 is calculated as:

ROC % (Q: Jun. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Jun. 2025 ))/ count )
=-0.216 * ( 1 - 0% )/( (36.061 + 36.161)/ 2 )
=-0.216/36.111
=-0.60 %

where

Note: The Operating Income data used here is two times the semi-annual (Jun. 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -0.60% mean?
Gigaset AG (FRA:GGS) has a ROC % of -0.60% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gigaset AG and its competitors.
Is Gigaset AG's ROC % too high?
Gigaset AG's current ROC % is -0.60%.
How does Gigaset AG's ROC % compare to CSCO and CIEN?
Gigaset AG's ROC % of -0.60% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. 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 Gigaset AG and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gigaset AG's current ROC % is -0.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gigaset AG stock overvalued right now?
Based on GuruFocus' analysis, Gigaset AG (FRA:GGS) is currently considered Significantly Undervalued. The stock's GF Value™ is €0.03, compared to a current price of €0.02 — trading 50% below its estimated fair value. The current ROC % is -0.60%. 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 Gigaset AG (FRA:GGS), the current ROC % is -0.60% as of Jun. 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.

Gigaset AG Business Description

Address Frankenstrasse 2, Bochalt, DEU, 46395
Gigaset AG manufactures and sells telecommunication equipment. Its business segments include Phones, Professional, Smart homes, and Smartphones. Phones segment generates the majority of the revenue. Its geographic segments include Germany, the European Union, and the Rest of the world.