ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Omnitech Engineering's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 14.49%.
As of today (2026-07-04), Omnitech Engineering's WACC % is 12.65%. Omnitech Engineering's ROC % is 13.02% (calculated using TTM income statement data).
Omnitech Engineering 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.
Omnitech Engineering (NSE:OMNI) 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, Omnitech Engineering's WACC % is 12.65%. Omnitech Engineering's ROC % is 13.02% (calculated using TTM income statement data).
Omnitech Engineering 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 two times the semi-annual (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.
Omnitech Engineering (NSE:OMNI) has a ROC % of 14.49% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Omnitech Engineering and its competitors.
Is Omnitech Engineering's ROC % too high?
Omnitech Engineering's current ROC % is 14.49%. The Industrial Products industry median ROC % is 5.21. Omnitech Engineering's value of 14.49% is 178.1% above this industry median. Overall, Omnitech Engineering has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Omnitech Engineering's ROC % compare to GEV and ETN?
Omnitech Engineering's ROC % of 14.49% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.21. Omnitech Engineering's value of 14.49% is 178.1% 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 Products company?
The median ROC % among Industrial Products companies is 5.21, based on 3,033 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. Omnitech Engineering's current ROC % of 14.49% is 178.1% 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 Omnitech Engineering and its competitors. For the Industrial Products industry, the median ROC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Omnitech Engineering's current ROC % is 14.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Omnitech Engineering stock overvalued right now?
Omnitech Engineering (NSE:OMNI) has a current ROC % of 14.49%. The current ROC % is 14.49% and 178.1% above the Industrial Products industry median of 5.21. Omnitech Engineering's overall GF Score™ is 19/100 with 7 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 Omnitech Engineering (NSE:OMNI), the current ROC % is 14.49% 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.
Omnitech Engineering Ltd is a manufacturer of turned and machined parts, focusing on precision engineering for various industries. The group provides services such as Machining Capacity, Raw Materials, Quality Control and Assurance, Product Development, and Component Gallery Old. The Group's business model, manufacturing of high precision and OEM components, has been considered as a single business segment. Its Geographic segments are India, the United States of America, the United Arab Emirates, and Others. The majority of its revenue comes from the United States of America. It caters to diverse end-use industries and customers in the Energy, Motion control and automation, Metal forming and Other diverse industries, Industrial equipment systems, and others.
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