ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ALA SpA's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was 20.86%.
As of today (2026-06-25), ALA SpA's WACC % is 9.17%. ALA SpA's ROC % is 19.62% (calculated using TTM income statement data).
ALA SpA 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.
ALA SpA (MIL:ALA) 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, ALA SpA's WACC % is 9.17%. ALA SpA's ROC % is 19.62% (calculated using TTM income statement data).
ALA SpA 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.
ALA SpA ROC % Related Terms
ALA SpA ROC % Historical Data
* Premium members only.
The historical data trend for ALA SpA'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 (Jun. 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.
ALA SpA (MIL:ALA) has a ROC % of 20.86% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ALA SpA and its competitors.
Is ALA SpA's ROC % too high?
ALA SpA's current ROC % is 20.86%. The Industrial Distribution industry median ROC % is 6.25. ALA SpA's value of 20.86% is 234% above this industry median. Overall, ALA SpA has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does ALA SpA's ROC % compare to GWW and FAST?
ALA SpA's ROC % of 20.86% can be compared against companies in the Industrial Distribution industry. The industry median ROC % is 6.25. ALA SpA's value of 20.86% is 234% 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 an Industrial Distribution company?
The median ROC % among Industrial Distribution companies is 6.25, based on 156 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. ALA SpA's current ROC % of 20.86% is 234% 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 ALA SpA and its competitors. For the Industrial Distribution industry, the median ROC % is 6.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALA SpA's current ROC % is 20.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALA SpA stock overvalued right now?
ALA SpA (MIL:ALA) has a current ROC % of 20.86%. The stock's GF Value™ is €30.35, compared to a current price of €36.00 — trading 18.6% above its estimated fair value. The current ROC % is 20.86% and 234% above the Industrial Distribution industry median of 6.25. ALA SpA's overall GF Score™ is 66/100 with 6 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 ALA SpA (MIL:ALA), the current ROC % is 20.86% 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.
Is ALA SpA (MIL:ALA) Overvalued in 2026?
Based on GuruFocus' analysis, ALA SpA stock appears to be overvalued.
The current stock price of €36.00 is trading 18.6% above its estimated GF Value™ of €30.35.
Key valuation signals for MIL:ALA:
ROC %: 20.86%
GF Value™: €30.35 vs. price of €36.00 (18.6% above fair value)
Industry Position: 234% above the Industrial Distribution median
No single metric tells the full story. See the MIL:ALA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ALA SpA is a distributor and supply chain solutions provider to the industrial markets. It is involved in the distribution of components and equipment for use in the civil and military aeronautical sectors. The company also offers integrated logistics services for the rail, energy, and marine sectors. Its various product offerings include power systems, oxygen systems, gate valves, protection valves, fasteners, regulators, and others. Geographically, the company derives maximum revenue from its business in Italy and the rest from other parts of the European Union and other regions.
66GF Score
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