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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Valmont Industries's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 18.07%.
As of today (2026-08-08), Valmont Industries's WACC % is 15.45%. Valmont Industries's ROC % is 20.14% (calculated using TTM income statement data).
Valmont Industries 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.
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, Valmont Industries's WACC % is 15.45%. Valmont Industries's ROC % is 20.14% (calculated using TTM income statement data).
Valmont Industries 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.
Valmont Industries ROC % Related Terms
Valmont Industries ROC % Historical Data
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The historical data trend for Valmont Industries'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 (Jun. 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.
Valmont Industries (FRA:VI1) has a ROC % of 18.07% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Valmont Industries and its competitors.
Is Valmont Industries' ROC % too high?
Valmont Industries' current ROC % is 18.07%. The Conglomerates industry median ROC % is 2.76. Valmont Industries' value of 18.07% is 554.7% above this industry median. Overall, Valmont Industries has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Valmont Industries' ROC % compare to GHC and SEB?
Valmont Industries' ROC % of 18.07% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.76. Valmont Industries' value of 18.07% is 554.7% 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 Conglomerates company?
The median ROC % among Conglomerates companies is 2.76, based on 545 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. Valmont Industries's current ROC % of 18.07% is 554.7% 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 Valmont Industries and its competitors. For the Conglomerates industry, the median ROC % is 2.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valmont Industries's current ROC % is 18.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valmont Industries stock overvalued right now?
Based on GuruFocus' analysis, Valmont Industries (FRA:VI1) is currently considered Significantly Overvalued. The stock's GF Value™ is €300.26, compared to a current price of €424.00 — trading 41.2% above its estimated fair value. The current ROC % is 18.07% and 554.7% above the Conglomerates industry median of 2.76. Valmont Industries' overall GF Score™ is 88/100. 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 Valmont Industries (FRA:VI1), the current ROC % is 18.07% as of Jun. 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 Valmont Industries (FRA:VI1) Overvalued in 2026?
Based on GuruFocus' analysis, Valmont Industries stock appears to be overvalued.
The current stock price of €424.00 is trading 41.2% above its estimated GF Value™ of €300.26.
GuruFocus considers Valmont Industries to be Significantly Overvalued.
Key valuation signals for FRA:VI1:
ROC %: 18.07%
GF Value™: €300.26 vs. price of €424.00 (41.2% above fair value)
Industry Position: 554.7% above the Conglomerates median
No single metric tells the full story. See the FRA:VI1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valmont began in 1946 when founder, Robert B. Daugherty, combined his $5,000 savings with a wholehearted belief that business could and should be done better. From those modest beginnings, the company grew into a global leader, designing and manufacturing highly engineered products and services that support infrastructure development and agricultural productivity. Two primary business segments comprise Valmont: Agriculture and Infrastructure. Valmont have 85 manufacturing facilities in 22 countries, and do business in more than 100 countries across six continents.
88GF Score
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