ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Incap Oyj's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 10.78%.
As of today (2026-06-26), Incap Oyj's WACC % is 10.20%. Incap Oyj's ROC % is 13.40% (calculated using TTM income statement data).
Incap Oyj 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.
Incap Oyj (LTS:0ERY) 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, Incap Oyj's WACC % is 10.20%. Incap Oyj's ROC % is 13.40% (calculated using TTM income statement data).
Incap Oyj 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.
Incap Oyj ROC % Related Terms
Incap Oyj ROC % Historical Data
* Premium members only.
The historical data trend for Incap Oyj'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.
Incap Oyj (LTS:0ERY) has a ROC % of 10.78% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Incap Oyj and its competitors.
Is Incap Oyj's ROC % too high?
Incap Oyj's current ROC % is 10.78%. The Hardware industry median ROC % is 4.12. Incap Oyj's value of 10.78% is 162% above this industry median. Overall, Incap Oyj has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Incap Oyj's ROC % compare to APH and GLW?
Incap Oyj's ROC % of 10.78% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Incap Oyj's value of 10.78% is 162% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Incap Oyj's current ROC % of 10.78% is 162% 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 Incap Oyj and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Incap Oyj's current ROC % is 10.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Incap Oyj stock overvalued right now?
Based on GuruFocus' analysis, Incap Oyj (LTS:0ERY) is currently considered Modestly Undervalued. The stock's GF Value™ is €10.74, compared to a current price of €8.74 — trading 18.6% below its estimated fair value. The current ROC % is 10.78% and 162% above the Hardware industry median of 4.12. Incap Oyj's overall GF Score™ is 90/100 with 2 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 Incap Oyj (LTS:0ERY), the current ROC % is 10.78% 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 Incap Oyj (LTS:0ERY) Overvalued in 2026?
Based on GuruFocus' analysis, Incap Oyj stock appears to be undervalued.
The current stock price of €8.74 is trading 18.6% below its estimated GF Value™ of €10.74.
GuruFocus considers Incap Oyj to be Modestly Undervalued.
Key valuation signals for LTS:0ERY:
ROC %: 10.78%
GF Value™: €10.74 vs. price of €8.74 (18.6% below fair value)
No single metric tells the full story. See the LTS:0ERY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Incap Oyj operates as a full-service provider in Electronics Manufacturing Services (EMS), supporting customers ranging from large multinational corporations, mid-sized companies, and small start-ups across the complete manufacturing value chain. Its services include material procurement, prototyping and engineering, production ramp-up, serial production, design, project management, final assembly, testing, and logistics, along with key offerings such as prototyping and engineering, PCB assembly manufacturing, box-build assembly, and customised solutions. The Company operates across Europe, North America, Asia, Africa, and Australia, with Europe generating the majority of its revenue.
90GF Score
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