ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Optical Cable's annualized return on capital (ROC %) for the quarter that ended in Apr. 2026 was 16.39%.
As of today (2026-06-25), Optical Cable's WACC % is 9.04%. Optical Cable's ROC % is 6.20% (calculated using TTM income statement data).
Optical Cable earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Optical Cable (NAS:OCC) 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, Optical Cable's WACC % is 9.04%. Optical Cable's ROC % is 6.20% (calculated using TTM income statement data).
Optical Cable 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.
Optical Cable ROC % Related Terms
Optical Cable ROC % Historical Data
* Premium members only.
The historical data trend for Optical Cable'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 (Apr. 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.
Optical Cable (OCC) has a ROC % of 16.39% as of Apr. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Optical Cable and its competitors.
Is Optical Cable's ROC % too high?
Optical Cable's current ROC % is 16.39%. The Hardware industry median ROC % is 4.12. Optical Cable's value of 16.39% is 298.3% above this industry median. Overall, Optical Cable has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Optical Cable's ROC % compare to AMPG and WATT?
Optical Cable's ROC % of 16.39% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Optical Cable's value of 16.39% is 298.3% 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 4.12, based on 2,444 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. Optical Cable's current ROC % of 16.39% is 298.3% 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 Optical Cable and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Optical Cable's current ROC % is 16.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optical Cable stock overvalued right now?
Based on GuruFocus' analysis, Optical Cable (OCC) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.22, compared to a current price of $18.81 — trading 484.2% above its estimated fair value. The current ROC % is 16.39% and 298.3% above the Hardware industry median of 4.12. Optical Cable's overall GF Score™ is 46/100 with 1 warning sign 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 Optical Cable (OCC), the current ROC % is 16.39% as of Apr. 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 Optical Cable (OCC) Overvalued in 2026?
Based on GuruFocus' analysis, Optical Cable stock appears to be overvalued.
The current stock price of $18.81 is trading 484.2% above its estimated GF Value™ of $3.22.
GuruFocus considers Optical Cable to be Significantly Overvalued.
Key valuation signals for OCC:
ROC %: 16.39%
GF Value™: $3.22 vs. price of $18.81 (484.2% above fair value)
Industry Position: 298.3% above the Hardware median
No single metric tells the full story. See the OCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Optical Cable Corp manufactures a broad range of fiber optic and copper data communication cabling and connectivity solutions for the enterprise, wireless carrier, and specialty markets. The Company offers high quality products that operate as a system solution or integrate with other components, including fiber, copper, hybrid cabling, cabinets, racks, enclosures, and deployable solutions for enterprise networks, data centers, residential, campus, Passive Optical LAN installations, and customized applications in military, industrial, mining, petrochemical, renewable energy, and broadcast industries. It operates a single reportable segment covering the design, development, manufacture, and marketing of its cabling and connectivity solutions.
46GF Score
Get the complete analysis for OCC
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
OCC has been successfully added to your 
