Ermes Department Stores (LTS:0GZY) ROC %: -2.61% (As of Jun. 2025)

What is Ermes Department Stores ROC %?

Ermes Department Stores LTS:0GZY ROC % is -2.61% as of Jun. 2025. The stock has 4 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ermes Department Stores's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was -2.61%.

As of today (2026-07-01), Ermes Department Stores's WACC % is 4.93%. Ermes Department Stores's ROC % is -2.27% (calculated using TTM income statement data). Ermes Department Stores earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ermes Department Stores (LTS:0GZY) 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, Ermes Department Stores's WACC % is 4.93%. Ermes Department Stores's ROC % is -2.27% (calculated using TTM income statement data). Ermes Department Stores 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.

Ermes Department Stores ROC % Related Terms

Ermes Department Stores ROC % Historical Data

* Premium members only.

The historical data trend for Ermes Department Stores'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.

Ermes Department Stores ROC % Chart

Ermes Department Stores Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

Get a 7-Day Free Trial

-1.33

0.00

-1.15

-1.92

Ermes Department Stores Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25
ROC %	Get a 7-Day Free Trial															2.29	-6.25	-1.85	-1.91	-2.61

Ermes Department Stores ROC % Calculation

Ermes Department Stores's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	-3.292 * ( 1 - 0.82% )	/	( (178.299	+	161.185)	/ 2 )
=	-3.2650056	/	169.742
=	-1.92 %

where

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	178.257	-	33.482	-	( 2.243	-	max(0, 71.552	-	38.028	+	2.243	))
=	178.299

	Invested Capital		(A: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	173.233	-	18.178	-	( 0.548	-	max(0, 107.375	-	101.245	+	0.548	))
=	161.185

Ermes Department Stores's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2025 is calculated as:

	ROC % (Q: Jun. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2024 )	+	Invested Capital (Q: Jun. 2025 ))	/ count )
=	-3.268 * ( 1 - 0% )	/	( (161.185	+	89.671)	/ 2 )
=	-3.268	/	125.428
=	-2.61 %

where

	Invested Capital		(Q: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	173.233	-	18.178	-	( 0.548	-	max(0, 107.375	-	101.245	+	0.548	))
=	161.185

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	84.405	-	13.181	-	( 0.951	-	max(0, 70.142	-	51.695	+	0.951	))
=	89.671

Note: The Operating Income data used here is two times the semi-annual (Jun. 2025) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -2.61% mean?

Ermes Department Stores (LTS:0GZY) has a ROC % of -2.61% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ermes Department Stores and its competitors.

Is Ermes Department Stores' ROC % too high?

Ermes Department Stores' current ROC % is -2.61%.

How does Ermes Department Stores' ROC % compare to DDS and M?

Ermes Department Stores' ROC % of -2.61% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.38. 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 Retail - Cyclical company?

The median ROC % among Retail - Cyclical companies is 4.38, based on 1,108 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. 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 Ermes Department Stores and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ermes Department Stores's current ROC % is -2.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Ermes Department Stores stock overvalued right now?

Ermes Department Stores (LTS:0GZY) has a current ROC % of -2.61%. The current ROC % is -2.61%. 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 Ermes Department Stores (LTS:0GZY), the current ROC % is -2.61% as of Jun. 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.

Ermes Department Stores Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies TSE:8267 XSGO:FALABELLA PHS:SM TSE:7453 LSE:MKS JSE:SHP DDS TSE:3099 MEX:LIVEPOL1 XKLS:5326 M XSGO:CENCOSUD TSE:9005 NSE:VMM TSE:3086 JSE:PPH TSE:8233 BKK:CRC XKRX:004170 MEX:SORIANAB

Other Exchanges ERME:Cyprus

Address Mansion, Old Nicosia - Limassol Road, Shacolas, Athalassa, Nicosia, CYP, 1584

Website http://www.ermes.com.cy

Ermes Department Stores PLC is engaged in operation of department stores. It sells fashion, cosmetics, toys, home goods and other goods and services for all ages and the family.