ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tialis Essential IT's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 7.24%.
As of today (2026-06-26), Tialis Essential IT's WACC % is 9.16%. Tialis Essential IT's ROC % is -0.75% (calculated using TTM income statement data).
Tialis Essential IT earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tialis Essential IT (LSE:TIA) 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, Tialis Essential IT's WACC % is 9.16%. Tialis Essential IT's ROC % is -0.75% (calculated using TTM income statement data).
Tialis Essential IT 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.
Tialis Essential IT ROC % Related Terms
Tialis Essential IT ROC % Historical Data
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The historical data trend for Tialis Essential IT'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.
Tialis Essential IT (LSE:TIA) has a ROC % of 7.24% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tialis Essential IT and its competitors.
Is Tialis Essential IT's ROC % too high?
Tialis Essential IT's current ROC % is 7.24%. The Software industry median ROC % is 3.11. Tialis Essential IT's value of 7.24% is 133.2% above this industry median. Overall, Tialis Essential IT has a GF Score™ of 36/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tialis Essential IT's ROC % compare to IBM and ACN?
Tialis Essential IT's ROC % of 7.24% can be compared against companies in the Software industry. The industry median ROC % is 3.11. Tialis Essential IT's value of 7.24% is 133.2% 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 Software company?
The median ROC % among Software companies is 3.11, based on 2,830 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. Tialis Essential IT's current ROC % of 7.24% is 133.2% 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 Tialis Essential IT and its competitors. For the Software industry, the median ROC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tialis Essential IT's current ROC % is 7.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tialis Essential IT stock overvalued right now?
Based on GuruFocus' analysis, Tialis Essential IT (LSE:TIA) is currently considered Fairly Valued. The stock's GF Value™ is £0.49, compared to a current price of £0.50 — trading 1% above its estimated fair value. The current ROC % is 7.24% and 133.2% above the Software industry median of 3.11. Tialis Essential IT's overall GF Score™ is 36/100 with 3 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 Tialis Essential IT (LSE:TIA), the current ROC % is 7.24% 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 Tialis Essential IT (LSE:TIA) Overvalued in 2026?
Based on GuruFocus' analysis, Tialis Essential IT stock appears to be overvalued.
The current stock price of £0.50 is trading 1% above its estimated GF Value™ of £0.49.
GuruFocus considers Tialis Essential IT to be Fairly Valued.
Key valuation signals for LSE:TIA:
ROC %: 7.24%
GF Value™: £0.49 vs. price of £0.50 (1% above fair value)
Industry Position: 133.2% above the Software median
No single metric tells the full story. See the LSE:TIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tialis Essential IT PLC is a specialist managed service provider with a broad portfolio of IT services and technology solutions. Its principal activities include the provision of end-to-end solutions to enterprise-scale end-customers, and public and private customers, concentrating on end-user device management and on-site support solutions. The company has two operating segment being the provision of end-to-end IT solutions, concentrating on end-user device management and on-site support solutions and AI consulting services. Geographically, it generates a majority of its revenue from the United Kingdom and the rest from Europe.
36GF Score
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