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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Colefax Group's annualized return on capital (ROC %) for the quarter that ended in Apr. 2026 was 16.96%.
As of today (2026-08-03), Colefax Group's WACC % is 6.42%. Colefax Group's ROC % is 16.71% (calculated using TTM income statement data).
Colefax Group 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.
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, Colefax Group's WACC % is 6.42%. Colefax Group's ROC % is 16.71% (calculated using TTM income statement data).
Colefax Group 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.
Colefax Group ROC % Related Terms
Colefax Group ROC % Historical Data
* Premium members only.
The historical data trend for Colefax Group'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 (Apr. 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.
Colefax Group (LSE:CFX) has a ROC % of 16.96% as of Apr. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Colefax Group and its competitors.
Is Colefax Group's ROC % too high?
Colefax Group's current ROC % is 16.96%. The Furnishings, Fixtures & Appliances industry median ROC % is 3.42. Colefax Group's value of 16.96% is 395.9% above this industry median. Overall, Colefax Group has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Colefax Group's ROC % compare to SN and SGI?
Colefax Group's ROC % of 16.96% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROC % is 3.42. Colefax Group's value of 16.96% is 395.9% 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 Furnishings, Fixtures & Appliances company?
The median ROC % among Furnishings, Fixtures & Appliances companies is 3.42, based on 429 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. Colefax Group's current ROC % of 16.96% is 395.9% 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 Colefax Group and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROC % is 3.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Colefax Group's current ROC % is 16.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Colefax Group stock overvalued right now?
Based on GuruFocus' analysis, Colefax Group (LSE:CFX) is currently considered Significantly Overvalued. The stock's GF Value™ is £10.76, compared to a current price of £14.80 — trading 37.5% above its estimated fair value. The current ROC % is 16.96% and 395.9% above the Furnishings, Fixtures & Appliances industry median of 3.42. Colefax Group's overall GF Score™ is 84/100 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 Colefax Group (LSE:CFX), the current ROC % is 16.96% as of Apr. 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 Colefax Group (LSE:CFX) Overvalued in 2026?
Based on GuruFocus' analysis, Colefax Group stock appears to be overvalued.
The current stock price of £14.80 is trading 37.5% above its estimated GF Value™ of £10.76.
GuruFocus considers Colefax Group to be Significantly Overvalued.
Key valuation signals for LSE:CFX:
ROC %: 16.96%
GF Value™: £10.76 vs. price of £14.80 (37.5% above fair value)
Industry Position: 395.9% above the Furnishings, Fixtures & Appliances median
No single metric tells the full story. See the LSE:CFX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Colefax Group PLC is an international designer and distributor of furnishing fabrics and wallpapers and an international decorating company. The company also sells antiques, interior and architectural design, project management, decorating, and furnishing for private and commercial clients. Its operating segments include the Product division and the Decorating division. It generates maximum revenue from the Product Division segment. Geographically, it derives the majority of its revenue from the United States and has a presence in the United Kingdom, Europe, and the Rest of the World.
84GF Score
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