ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gerresheimer AG's annualized return on capital (ROC %) for the quarter that ended in Aug. 2025 was 0.56%.
As of today (2026-06-26), Gerresheimer AG's WACC % is 4.67%. Gerresheimer AG's ROC % is 2.97% (calculated using TTM income statement data).
Gerresheimer AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Gerresheimer AG (OTCPK:GRRMF) 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, Gerresheimer AG's WACC % is 4.67%. Gerresheimer AG's ROC % is 2.97% (calculated using TTM income statement data).
Gerresheimer 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.
Gerresheimer AG ROC % Related Terms
Gerresheimer AG ROC % Historical Data
* Premium members only.
The historical data trend for Gerresheimer 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.
Note:
The Operating Income data used here is four times the quarterly (Aug. 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.
Gerresheimer AG (GRRMF) has a ROC % of 0.56% as of Aug. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gerresheimer AG and its competitors.
Is Gerresheimer AG's ROC % too high?
Gerresheimer AG's current ROC % is 0.56%. The Medical Devices & Instruments industry median ROC % is 1.26. Gerresheimer AG's value of 0.56% is 55.6% below this industry median. Overall, Gerresheimer AG has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gerresheimer AG's ROC % compare to ISRG and BDX?
Gerresheimer AG's ROC % of 0.56% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROC % is 1.26. Gerresheimer AG's value of 0.56% is 55.6% below 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 Medical Devices & Instruments company?
The median ROC % among Medical Devices & Instruments companies is 1.26, based on 847 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. Gerresheimer AG's current ROC % of 0.56% is 55.6% below 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 Gerresheimer AG and its competitors. For the Medical Devices & Instruments industry, the median ROC % is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gerresheimer AG's current ROC % is 0.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gerresheimer AG stock overvalued right now?
Based on GuruFocus' analysis, Gerresheimer AG (GRRMF) is currently considered Possible Value Trap. The stock's GF Value™ is $119.57, compared to a current price of $32.10 — trading 73.2% below its estimated fair value. The current ROC % is 0.56% and 55.6% below the Medical Devices & Instruments industry median of 1.26. Gerresheimer AG's overall GF Score™ is 67/100 with 3 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 Gerresheimer AG (GRRMF), the current ROC % is 0.56% as of Aug. 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 Gerresheimer AG (GRRMF) Overvalued in 2026?
Based on GuruFocus' analysis, Gerresheimer AG stock appears to be undervalued.
The current stock price of $32.10 is trading 73.2% below its estimated GF Value™ of $119.57.
GuruFocus considers Gerresheimer AG to be Possible Value Trap.
Key valuation signals for GRRMF:
ROC %: 0.56%
GF Value™: $119.57 vs. price of $32.10 (73.2% below fair value)
Industry Position: 55.6% below the Medical Devices & Instruments median
No single metric tells the full story. See the GRRMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gerresheimer AG provides medicine packaging, drug delivery devices, and solutions with a product range for pharma, health, well-being, and biotech. The firm operates in three segments: The plastics and devices segment consists of products for simple and safe drug delivery along with packaging for liquid and solid medicines, The primary packaging glass segment produces glass packaging products for the pharma and cosmetics industries also for food and beverage industry and The advanced technologies segment works on technical and digital solutions to improve the therapy outcome for patients. The company generates the majority of its revenue in Europe, with sales in Germany contributing the major proportion of any country.
67GF Score
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