ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gefran SpA's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 18.45%.
As of today (2026-06-30), Gefran SpA's WACC % is 8.34%. Gefran SpA's ROC % is 11.75% (calculated using TTM income statement data).
Gefran 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.
Gefran SpA (MIL:GE) 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, Gefran SpA's WACC % is 8.34%. Gefran SpA's ROC % is 11.75% (calculated using TTM income statement data).
Gefran 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.
Gefran SpA ROC % Related Terms
Gefran SpA ROC % Historical Data
* Premium members only.
The historical data trend for Gefran 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 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.
Gefran SpA (MIL:GE) has a ROC % of 18.45% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gefran SpA and its competitors.
Is Gefran SpA's ROC % too high?
Gefran SpA's current ROC % is 18.45%. The Hardware industry median ROC % is 4.09. Gefran SpA's value of 18.45% is 351.7% above this industry median. Overall, Gefran SpA has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Gefran SpA's ROC % compare to APH and GLW?
Gefran SpA's ROC % of 18.45% can be compared against companies in the Hardware industry. The industry median ROC % is 4.09. Gefran SpA's value of 18.45% is 351.7% 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 4.09, based on 2,448 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. Gefran SpA's current ROC % of 18.45% is 351.7% 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 Gefran SpA and its competitors. For the Hardware industry, the median ROC % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gefran SpA's current ROC % is 18.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gefran SpA stock overvalued right now?
Based on GuruFocus' analysis, Gefran SpA (MIL:GE) is currently considered Fairly Valued. The stock's GF Value™ is €9.71, compared to a current price of €10.60 — trading 9.2% above its estimated fair value. The current ROC % is 18.45% and 351.7% above the Hardware industry median of 4.09. Gefran SpA's overall GF Score™ is 76/100. 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 Gefran SpA (MIL:GE), the current ROC % is 18.45% 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 Gefran SpA (MIL:GE) Overvalued in 2026?
Based on GuruFocus' analysis, Gefran SpA stock appears to be overvalued.
The current stock price of €10.60 is trading 9.2% above its estimated GF Value™ of €9.71.
GuruFocus considers Gefran SpA to be Fairly Valued.
Key valuation signals for MIL:GE:
ROC %: 18.45%
GF Value™: €9.71 vs. price of €10.60 (9.2% above fair value)
Industry Position: 351.7% above the Hardware median
No single metric tells the full story. See the MIL:GE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gefran SpA operates in two business divisions namely, industrial sensors, and automation components. The sensors business offers a complete for measuring four physical parameters position, pressure, force, and temperature. The automation components business is divided into three product lines: instrumentation, power controllers, and automation platforms. It generates the majority of the revenue from sensors. Geographically, the company has presence in Italy, the European Union, Europe non-EU, North America, South America, Asia, and the Rest of the World.
76GF Score
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