ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kontoor Brands's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 12.76%.
As of today (2026-06-25), Kontoor Brands's WACC % is 8.31%. Kontoor Brands's ROC % is 14.31% (calculated using TTM income statement data).
Kontoor Brands 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.
Kontoor Brands (NYSE:KTB) 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, Kontoor Brands's WACC % is 8.31%. Kontoor Brands's ROC % is 14.31% (calculated using TTM income statement data).
Kontoor Brands 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.
Kontoor Brands ROC % Related Terms
Kontoor Brands ROC % Historical Data
* Premium members only.
The historical data trend for Kontoor Brands'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.
Kontoor Brands (KTB) has a ROC % of 12.76% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kontoor Brands and its competitors.
Is Kontoor Brands' ROC % too high?
Kontoor Brands' current ROC % is 12.76%. The Manufacturing - Apparel & Accessories industry median ROC % is 2.90. Kontoor Brands' value of 12.76% is 340% above this industry median. Overall, Kontoor Brands has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kontoor Brands' ROC % compare to ZGN and PVH?
Kontoor Brands' ROC % of 12.76% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 2.90. Kontoor Brands' value of 12.76% is 340% 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 Manufacturing - Apparel & Accessories company?
The median ROC % among Manufacturing - Apparel & Accessories companies is 2.90, based on 1,049 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. Kontoor Brands's current ROC % of 12.76% is 340% 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 Kontoor Brands and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kontoor Brands's current ROC % is 12.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kontoor Brands stock overvalued right now?
Based on GuruFocus' analysis, Kontoor Brands (KTB) is currently considered Fairly Valued. The stock's GF Value™ is $73.81, compared to a current price of $78.00 — trading 5.7% above its estimated fair value. The current ROC % is 12.76% and 340% above the Manufacturing - Apparel & Accessories industry median of 2.90. Kontoor Brands' overall GF Score™ is 80/100 with 5 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 Kontoor Brands (KTB), the current ROC % is 12.76% 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 Kontoor Brands (KTB) Overvalued in 2026?
Based on GuruFocus' analysis, Kontoor Brands stock appears to be overvalued.
The current stock price of $78.00 is trading 5.7% above its estimated GF Value™ of $73.81.
GuruFocus considers Kontoor Brands to be Fairly Valued.
Key valuation signals for KTB:
ROC %: 12.76%
GF Value™: $73.81 vs. price of $78.00 (5.7% above fair value)
Industry Position: 340% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the KTB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kontoor Brands Inc is a lifestyle apparel company. It designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories, mainly under the brand names Wrangler, Lee, Helly Hansen, and a few other brands. The company also licenses the use of its brands in certain regions. Its products are sold through wholesale and direct-to-consumer channels in the United States (its key revenue-generating market) and internationally, mainly in Europe, Middle East and Africa (EMEA), Asia-Pacific (APAC), and Non-U.S. Americas regions. The company's three reportable segments are Wrangler, Lee, and Helly Hansen. The majority of its revenue is generated from the Wrangler segment, which offers denim, apparel, footwear, and accessories through Wrangler and various sub-brands.
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