ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sanderson Design Group's annualized return on capital (ROC %) for the quarter that ended in Jan. 2026 was 2.30%.
As of today (2026-06-28), Sanderson Design Group's WACC % is 8.51%. Sanderson Design Group's ROC % is 2.18% (calculated using TTM income statement data).
Sanderson Design Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sanderson Design Group (LSE:SDG) 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, Sanderson Design Group's WACC % is 8.51%. Sanderson Design Group's ROC % is 2.18% (calculated using TTM income statement data).
Sanderson Design Group 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 two times the semi-annual (Jan. 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.
Sanderson Design Group (LSE:SDG) has a ROC % of 2.30% as of Jan. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sanderson Design Group and its competitors.
Is Sanderson Design Group's ROC % too high?
Sanderson Design Group's current ROC % is 2.30%. The Furnishings, Fixtures & Appliances industry median ROC % is 3.46. Sanderson Design Group's value of 2.30% is 33.5% below this industry median. Overall, Sanderson Design Group has a GF Score™ of 50/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sanderson Design Group's ROC % compare to SN and SGI?
Sanderson Design Group's ROC % of 2.30% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROC % is 3.46. Sanderson Design Group's value of 2.30% is 33.5% 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 Furnishings, Fixtures & Appliances company?
The median ROC % among Furnishings, Fixtures & Appliances companies is 3.46, based on 428 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. Sanderson Design Group's current ROC % of 2.30% is 33.5% 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 Sanderson Design Group and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROC % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanderson Design Group's current ROC % is 2.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanderson Design Group stock overvalued right now?
Based on GuruFocus' analysis, Sanderson Design Group (LSE:SDG) is currently considered Fairly Valued. The stock's GF Value™ is £0.72, compared to a current price of £0.72 — trading right at its estimated fair value. The current ROC % is 2.30% and 33.5% below the Furnishings, Fixtures & Appliances industry median of 3.46. Sanderson Design Group's overall GF Score™ is 50/100 with 9 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 Sanderson Design Group (LSE:SDG), the current ROC % is 2.30% as of Jan. 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 Sanderson Design Group (LSE:SDG) Overvalued in 2026?
Based on GuruFocus' analysis, Sanderson Design Group stock appears to be undervalued.
The current stock price of £0.72 is trading 0% below its estimated GF Value™ of £0.72.
GuruFocus considers Sanderson Design Group to be Fairly Valued.
Key valuation signals for LSE:SDG:
ROC %: 2.30%
GF Value™: £0.72 vs. price of £0.72 (0% below fair value)
Industry Position: 33.5% below the Furnishings, Fixtures & Appliances median
No single metric tells the full story. See the LSE:SDG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sanderson Design Group PLC is a luxury interior furnishings company that designs, manufactures, and markets wallpapers and fabrics together with a wide range of ancillary interior products. Its reportable segments are Brands, Licensing, and Manufacturing. The Brands division comprises the design, marketing, sales, and distribution of Morris & Co., Sanderson, Zoffany, Clarke & Clarke, Harlequin, and Scion brands. The Licensing segment represents the licensing activities of various brands, and the Manufacturing segment represents the wallcovering and printed fabric manufacturing businesses operated by Anstey and Standfast & Barracks, respectively. The company generates a majority of its revenue from the Brands segment.
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