ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. KORU Medical Systems's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -29.79%.
As of today (2026-07-08), KORU Medical Systems's WACC % is 11.50%. KORU Medical Systems's ROC % is -22.20% (calculated using TTM income statement data).
KORU Medical Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
KORU Medical Systems (NAS:KRMD) 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, KORU Medical Systems's WACC % is 11.50%. KORU Medical Systems's ROC % is -22.20% (calculated using TTM income statement data).
KORU Medical Systems 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.
* 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.
KORU Medical Systems (KRMD) has a ROC % of -29.79% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on KORU Medical Systems and its competitors.
Is KORU Medical Systems' ROC % too high?
KORU Medical Systems' current ROC % is -29.79%. Overall, KORU Medical Systems has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KORU Medical Systems' ROC % compare to EMBC and PDEX?
KORU Medical Systems' ROC % of -29.79% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROC % is 1.26. 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 845 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 KORU Medical Systems 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. KORU Medical Systems's current ROC % is -29.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KORU Medical Systems stock overvalued right now?
Based on GuruFocus' analysis, KORU Medical Systems (KRMD) is currently considered Fairly Valued. The stock's GF Value™ is $4.08, compared to a current price of $4.43 — trading 8.6% above its estimated fair value. The current ROC % is -29.79%. KORU Medical Systems' overall GF Score™ is 76/100. 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 KORU Medical Systems (KRMD), the current ROC % is -29.79% 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 KORU Medical Systems (KRMD) Overvalued in 2026?
Based on GuruFocus' analysis, KORU Medical Systems stock appears to be overvalued.
The current stock price of $4.43 is trading 8.6% above its estimated GF Value™ of $4.08.
GuruFocus considers KORU Medical Systems to be Fairly Valued.
Key valuation signals for KRMD:
ROC %: -29.79%
GF Value™: $4.08 vs. price of $4.43 (8.6% above fair value)
No single metric tells the full story. See the KRMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KORU Medical Systems Inc develops, manufactures, and commercializes large volume subcutaneous infusion solutions for the subcutaneous drug delivery market. Its product portfolio focuses on mechanical infusion devices, including the FREEDOM60 and FreedomEdge syringe drivers, HIgH-Flo subcutaneous safety needle sets, and precision flow rate tubing. The company operates as one segment. Its revenue streams are: Domestic Core, International Core and Pharma services and clinical trials. The majority of the company's revenue is derived from the Domestic Core business, which consists of sales of its syringe drivers, tubing and needles. Geographically, its revenues are predominantly derived from the United States.
76GF Score
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