ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Saf Tehnika's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 43.60%.
As of today (2026-06-25), Saf Tehnika's WACC % is 10.17%. Saf Tehnika's ROC % is 25.30% (calculated using TTM income statement data).
Saf Tehnika 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.
Saf Tehnika (FRA:VTZ) 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, Saf Tehnika's WACC % is 10.17%. Saf Tehnika's ROC % is 25.30% (calculated using TTM income statement data).
Saf Tehnika 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.
Saf Tehnika ROC % Related Terms
Saf Tehnika ROC % Historical Data
* Premium members only.
The historical data trend for Saf Tehnika'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.
Saf Tehnika (FRA:VTZ) has a ROC % of 43.60% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Saf Tehnika and its competitors.
Is Saf Tehnika's ROC % too high?
Saf Tehnika's current ROC % is 43.60%. The Hardware industry median ROC % is 4.12. Saf Tehnika's value of 43.60% is 958.3% above this industry median. Overall, Saf Tehnika has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Saf Tehnika's ROC % compare to CSCO and CIEN?
Saf Tehnika's ROC % of 43.60% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Saf Tehnika's value of 43.60% is 958.3% 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 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. Saf Tehnika's current ROC % of 43.60% is 958.3% 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 Saf Tehnika 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. Saf Tehnika's current ROC % is 43.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saf Tehnika stock overvalued right now?
Based on GuruFocus' analysis, Saf Tehnika (FRA:VTZ) is currently considered Modestly Overvalued. The stock's GF Value™ is €8.79, compared to a current price of €10.60 — trading 20.6% above its estimated fair value. The current ROC % is 43.60% and 958.3% above the Hardware industry median of 4.12. Saf Tehnika's overall GF Score™ is 63/100 with 6 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 Saf Tehnika (FRA:VTZ), the current ROC % is 43.60% 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 Saf Tehnika (FRA:VTZ) Overvalued in 2026?
Based on GuruFocus' analysis, Saf Tehnika stock appears to be overvalued.
The current stock price of €10.60 is trading 20.6% above its estimated GF Value™ of €8.79.
GuruFocus considers Saf Tehnika to be Modestly Overvalued.
Key valuation signals for FRA:VTZ:
ROC %: 43.60%
GF Value™: €8.79 vs. price of €10.60 (20.6% above fair value)
Industry Position: 958.3% above the Hardware median
No single metric tells the full story. See the FRA:VTZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saf Tehnika and its subsidiaries are engaged in the design, production, and distribution of microwave radio data transmission equipment thus offering an alternative to cable channels. The company offers products to mobile network operators, data service providers such as Internet service providers and telecommunications companies, as well as state institutions and private companies. The company also sells antennas, cables, OEM products, and other accessories purchased from other suppliers, as another structural unit. The company's segments are; CFIP, Integra, Spectrum, Compact, Aranet; and Other. It sells its product in Latvia, North and South America, Europe, CIS, Asia, Africa, and the Middle East, of which key sales revenue is generated from North and South America.
63GF Score
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