ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Pick N Pay Stores's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 0.01%.
As of today (2026-06-25), Pick N Pay Stores's WACC % is 9.25%. Pick N Pay Stores's ROC % is -3.99% (calculated using TTM income statement data).
Pick N Pay Stores earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pick N Pay Stores (JSE:PIK) 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, Pick N Pay Stores's WACC % is 9.25%. Pick N Pay Stores's ROC % is -3.99% (calculated using TTM income statement data).
Pick N Pay Stores 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.
Pick N Pay Stores ROC % Related Terms
Pick N Pay Stores ROC % Historical Data
* Premium members only.
The historical data trend for Pick N Pay Stores'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 two times the semi-annual (Feb. 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.
Pick N Pay Stores (JSE:PIK) has a ROC % of 0.01% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Pick N Pay Stores and its competitors.
Is Pick N Pay Stores' ROC % too high?
Pick N Pay Stores' current ROC % is 0.01%. The Retail - Cyclical industry median ROC % is 4.37. Pick N Pay Stores' value of 0.01% is 99.8% below this industry median. Overall, Pick N Pay Stores has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pick N Pay Stores' ROC % compare to DDS and M?
Pick N Pay Stores' ROC % of 0.01% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.37. Pick N Pay Stores' value of 0.01% is 99.8% 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 Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.37, based on 1,113 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. Pick N Pay Stores's current ROC % of 0.01% is 99.8% 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 Pick N Pay Stores and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pick N Pay Stores's current ROC % is 0.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pick N Pay Stores stock overvalued right now?
Based on GuruFocus' analysis, Pick N Pay Stores (JSE:PIK) is currently considered Modestly Undervalued. The stock's GF Value™ is R24.21, compared to a current price of R20.76 — trading 14.3% below its estimated fair value. The current ROC % is 0.01% and 99.8% below the Retail - Cyclical industry median of 4.37. Pick N Pay Stores' overall GF Score™ is 65/100 with 2 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 Pick N Pay Stores (JSE:PIK), the current ROC % is 0.01% as of Feb. 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 Pick N Pay Stores (JSE:PIK) Overvalued in 2026?
Based on GuruFocus' analysis, Pick N Pay Stores stock appears to be undervalued.
The current stock price of R20.76 is trading 14.3% below its estimated GF Value™ of R24.21.
GuruFocus considers Pick N Pay Stores to be Modestly Undervalued.
Key valuation signals for JSE:PIK:
ROC %: 0.01%
GF Value™: R24.21 vs. price of R20.76 (14.3% below fair value)
Industry Position: 99.8% below the Retail - Cyclical median
No single metric tells the full story. See the JSE:PIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pick N Pay Stores Ltd is a South African multiformat and multichannel retailer. The company operates in South Africa, Namibia, Botswana, Zambia, Mauritius, Swaziland, and Lesotho. The company offers food and groceries, clothing, general merchandise, and services across multiple store formats, both franchised and owned. The customer base is mainly represented by middle-income South African consumer. The portfolio of stores is composed of supermarkets, hypermarkets, local shops, express shops, clothing shops, liquor stores, and others.
65GF Score
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