ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. NCS Multistage Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.84%.
As of today (2026-06-25), NCS Multistage Holdings's WACC % is -1.13%. NCS Multistage Holdings's ROC % is 6.07% (calculated using TTM income statement data).
NCS Multistage Holdings 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.
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, NCS Multistage Holdings's WACC % is -1.13%. NCS Multistage Holdings's ROC % is 6.07% (calculated using TTM income statement data).
NCS Multistage Holdings 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.
* 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.
NCS Multistage Holdings (NCSM) has a ROC % of 1.84% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on NCS Multistage Holdings and its competitors.
Is NCS Multistage Holdings' ROC % too high?
NCS Multistage Holdings' current ROC % is 1.84%. The Oil & Gas industry median ROC % is 3.63. NCS Multistage Holdings' value of 1.84% is 49.3% below this industry median. Overall, NCS Multistage Holdings has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NCS Multistage Holdings' ROC % compare to GEOS and DWSN?
NCS Multistage Holdings' ROC % of 1.84% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. NCS Multistage Holdings' value of 1.84% is 49.3% below 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 Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.63, based on 997 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. NCS Multistage Holdings's current ROC % of 1.84% is 49.3% below 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 NCS Multistage Holdings and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NCS Multistage Holdings's current ROC % is 1.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NCS Multistage Holdings stock overvalued right now?
Based on GuruFocus' analysis, NCS Multistage Holdings (NCSM) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.91, compared to a current price of $45.97 — trading 77.4% above its estimated fair value. The current ROC % is 1.84% and 49.3% below the Oil & Gas industry median of 3.63. NCS Multistage Holdings' overall GF Score™ is 66/100 with 4 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 NCS Multistage Holdings (NCSM), the current ROC % is 1.84% 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 NCS Multistage Holdings (NCSM) Overvalued in 2026?
Based on GuruFocus' analysis, NCS Multistage Holdings stock appears to be overvalued.
The current stock price of $45.97 is trading 77.4% above its estimated GF Value™ of $25.91.
GuruFocus considers NCS Multistage Holdings to be Significantly Overvalued.
Key valuation signals for NCSM:
ROC %: 1.84%
GF Value™: $25.91 vs. price of $45.97 (77.4% above fair value)
Industry Position: 49.3% below the Oil & Gas median
No single metric tells the full story. See the NCSM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NCS Multistage Holdings Inc is a provider of engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completion, and field development strategies. The company provides its products and services to E&P companies for use in onshore and offshore wells, predominantly those drilled with horizontal laterals in unconventional and conventional oil and natural gas formations. It also provides tracer diagnostics services and sells products for well construction including casing buoyancy systems, liner hanger systems and toe initiation sleeves, along with certain complementary products from third parties. The company operates in the United States, Canada and other countries, with the majority of its revenue generated from Canada.
66GF Score
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