ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Lotus Bakeries NV's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 16.86%.
As of today (2026-06-25), Lotus Bakeries NV's WACC % is 9.65%. Lotus Bakeries NV's ROC % is 15.79% (calculated using TTM income statement data).
Lotus Bakeries NV 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.
Lotus Bakeries NV (OTCPK:LOTBY) 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, Lotus Bakeries NV's WACC % is 9.65%. Lotus Bakeries NV's ROC % is 15.79% (calculated using TTM income statement data).
Lotus Bakeries NV 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.
Lotus Bakeries NV ROC % Related Terms
Lotus Bakeries NV ROC % Historical Data
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The historical data trend for Lotus Bakeries NV'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 (Dec. 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.
Lotus Bakeries NV (LOTBY) has a ROC % of 16.86% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Lotus Bakeries NV and its competitors.
Is Lotus Bakeries NV's ROC % too high?
Lotus Bakeries NV's current ROC % is 16.86%. The Consumer Packaged Goods industry median ROC % is 5.14. Lotus Bakeries NV's value of 16.86% is 228% above this industry median. Overall, Lotus Bakeries NV has a GF Score™ of 100/100, reflecting its overall financial health beyond just this single metric.
How does Lotus Bakeries NV's ROC % compare to KHC and GIS?
Lotus Bakeries NV's ROC % of 16.86% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.14. Lotus Bakeries NV's value of 16.86% is 228% 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.14, based on 1,948 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. Lotus Bakeries NV's current ROC % of 16.86% is 228% 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 Lotus Bakeries NV and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lotus Bakeries NV's current ROC % is 16.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lotus Bakeries NV stock overvalued right now?
Lotus Bakeries NV (LOTBY) has a current ROC % of 16.86%. The stock's GF Value™ is $112.83, compared to a current price of $114.50 — trading 1.5% above its estimated fair value. The current ROC % is 16.86% and 228% above the Consumer Packaged Goods industry median of 5.14. Lotus Bakeries NV's overall GF Score™ is 100/100 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 Lotus Bakeries NV (LOTBY), the current ROC % is 16.86% as of Dec. 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 Lotus Bakeries NV (LOTBY) Overvalued in 2026?
Based on GuruFocus' analysis, Lotus Bakeries NV stock appears to be overvalued.
The current stock price of $114.50 is trading 1.5% above its estimated GF Value™ of $112.83.
Key valuation signals for LOTBY:
ROC %: 16.86%
GF Value™: $112.83 vs. price of $114.50 (1.5% above fair value)
Industry Position: 228% above the Consumer Packaged Goods median
No single metric tells the full story. See the LOTBY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lotus Bakeries NV is active in the indulgent and better-for-you snacking segment and is engaged in the manufacture and sale of biscuits, waffles, cakes, and other snack products. The Group offers multiple products, including caramelized biscuits, waffles and galettes, cake specialties, gingerbread, and other biscuits, and distributes its products through retail, catering, and food service channels. Its brands include Biscoff, Nakd, TREK, BEAR, Kiddylicious, Lotus Dinosaurus, Peijnenburg, Snelle Jelle, Annas, and Peter's Yard. Its activities are organised under three strategic pillars, namely Lotus Biscoff, Lotus Natural Foods, and Lotus Local Heroes. The company operates in Continental Europe, which generates maximum revenue, as well as in the UK, the Americas, and the rest of the world.
100GF Score
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