ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sterling and Wilson Renewable Energy's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 19.67%.
As of today (2026-06-26), Sterling and Wilson Renewable Energy's WACC % is 21.03%. Sterling and Wilson Renewable Energy's ROC % is 12.57% (calculated using TTM income statement data).
Sterling and Wilson Renewable Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sterling and Wilson Renewable Energy (NSE:SWSOLAR) 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, Sterling and Wilson Renewable Energy's WACC % is 21.03%. Sterling and Wilson Renewable Energy's ROC % is 12.57% (calculated using TTM income statement data).
Sterling and Wilson Renewable Energy 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.
Sterling and Wilson Renewable Energy ROC % Related Terms
Sterling and Wilson Renewable Energy ROC % Historical Data
* 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.
Sterling and Wilson Renewable Energy (NSE:SWSOLAR) has a ROC % of 19.67% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sterling and Wilson Renewable Energy and its competitors.
Is Sterling and Wilson Renewable Energy's ROC % too high?
Sterling and Wilson Renewable Energy's current ROC % is 19.67%. The Semiconductors industry median ROC % is 3.74. Sterling and Wilson Renewable Energy's value of 19.67% is 425.9% above this industry median. Overall, Sterling and Wilson Renewable Energy has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sterling and Wilson Renewable Energy's ROC % compare to FSLR and NXT?
Sterling and Wilson Renewable Energy's ROC % of 19.67% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.74. Sterling and Wilson Renewable Energy's value of 19.67% is 425.9% 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 Semiconductors company?
The median ROC % among Semiconductors companies is 3.74, based on 1,012 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. Sterling and Wilson Renewable Energy's current ROC % of 19.67% is 425.9% 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 Sterling and Wilson Renewable Energy and its competitors. For the Semiconductors industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling and Wilson Renewable Energy's current ROC % is 19.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling and Wilson Renewable Energy stock overvalued right now?
Based on GuruFocus' analysis, Sterling and Wilson Renewable Energy (NSE:SWSOLAR) is currently considered Possible Value Trap. The stock's GF Value™ is ₹922.52, compared to a current price of ₹246.68 — trading 73.3% below its estimated fair value. The current ROC % is 19.67% and 425.9% above the Semiconductors industry median of 3.74. Sterling and Wilson Renewable Energy's overall GF Score™ is 62/100 with 3 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 Sterling and Wilson Renewable Energy (NSE:SWSOLAR), the current ROC % is 19.67% 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 Sterling and Wilson Renewable Energy (NSE:SWSOLAR) Overvalued in 2026?
Based on GuruFocus' analysis, Sterling and Wilson Renewable Energy stock appears to be undervalued.
The current stock price of ₹246.68 is trading 73.3% below its estimated GF Value™ of ₹922.52.
GuruFocus considers Sterling and Wilson Renewable Energy to be Possible Value Trap.
Key valuation signals for NSE:SWSOLAR:
ROC %: 19.67%
GF Value™: ₹922.52 vs. price of ₹246.68 (73.3% below fair value)
Industry Position: 425.9% above the Semiconductors median
No single metric tells the full story. See the NSE:SWSOLAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sterling and Wilson Renewable Energy Business Description
Sterling and Wilson Renewable Energy Ltd principal activity includes import, export and trading of solar modules, structures, invertors and related accessories, installation and maintenance of renewable energy power generating facilities and other related activities. It is also engaged in the business of setting up of power plants, solar energy systems, renewable energy systems or any other facility including Hybrid Energy Systems & Energy Storage (BESS) & (ESS) plants with predominantly non fossil fuels to generate power and to produce. Its segment is Engineering, Procurement and Construction ('EPC' business) and Operation and Maintenance service. The company has majority of sales from EPC business. Majority of revenue comes from India followed by Europe, and other countries.
62GF Score
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