ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Key Tronic's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -1.35%.
As of today (2026-06-25), Key Tronic's WACC % is 8.41%. Key Tronic's ROC % is -3.98% (calculated using TTM income statement data).
Key Tronic earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Key Tronic (FRA:KT1) 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, Key Tronic's WACC % is 8.41%. Key Tronic's ROC % is -3.98% (calculated using TTM income statement data).
Key Tronic 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.
Key Tronic ROC % Related Terms
Key Tronic ROC % Historical Data
* Premium members only.
The historical data trend for Key Tronic'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 (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.
Key Tronic (FRA:KT1) has a ROC % of -1.35% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Key Tronic and its competitors.
Is Key Tronic's ROC % too high?
Key Tronic's current ROC % is -1.35%. Overall, Key Tronic has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Key Tronic's ROC % compare to QCLS and TACT?
Key Tronic's ROC % of -1.35% 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 2,443 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 Key Tronic 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. Key Tronic's current ROC % is -1.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Key Tronic stock overvalued right now?
Based on GuruFocus' analysis, Key Tronic (FRA:KT1) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.26, compared to a current price of €3.28 — trading 45.1% above its estimated fair value. The current ROC % is -1.35%. Key Tronic's overall GF Score™ is 57/100 with 9 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 Key Tronic (FRA:KT1), the current ROC % is -1.35% 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 Key Tronic (FRA:KT1) Overvalued in 2026?
Based on GuruFocus' analysis, Key Tronic stock appears to be overvalued.
The current stock price of €3.28 is trading 45.1% above its estimated GF Value™ of €2.26.
GuruFocus considers Key Tronic to be Significantly Overvalued.
Key valuation signals for FRA:KT1:
ROC %: -1.35%
GF Value™: €2.26 vs. price of €3.28 (45.1% above fair value)
No single metric tells the full story. See the FRA:KT1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Key Tronic Corporation provides electronic manufacturing services, including engineering, materials management, manufacturing and assembly, in-house testing, and distribution to various countries. The company serves diverse industries such as pest control, personal protection, air purification, automotive, medical technology, and utilities inspection equipment. Its primary services include integrated electronic and mechanical engineering, precision plastic molding, sheet metal fabrication, printed circuit board (PCB) and complete product assembly. Key Tronic operates manufacturing facilities in the United States, Vietnam, and Mexico, recently expanding with a new facility in Arkansas. Revenue is generated mainly through contract manufacturing and service agreement.
57GF Score
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