ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. InCoax Networks AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -39.81%.
As of today (2026-07-01), InCoax Networks AB's WACC % is 8.36%. InCoax Networks AB's ROC % is -31.47% (calculated using TTM income statement data).
InCoax Networks AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.
InCoax Networks AB (OSTO:INCOAX) 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, InCoax Networks AB's WACC % is 8.36%. InCoax Networks AB's ROC % is -31.47% (calculated using TTM income statement data).
InCoax Networks AB 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.
InCoax Networks AB ROC % Related Terms
InCoax Networks AB ROC % Historical Data
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The historical data trend for InCoax Networks AB'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.
InCoax Networks AB (OSTO:INCOAX) has a ROC % of -39.81% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on InCoax Networks AB and its competitors.
Is InCoax Networks AB's ROC % too high?
InCoax Networks AB's current ROC % is -39.81%. Overall, InCoax Networks AB has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does InCoax Networks AB's ROC % compare to CSCO and CIEN?
InCoax Networks AB's ROC % of -39.81% can be compared against companies in the Hardware industry. The industry median ROC % is 4.10. 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 4.10, 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. 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 InCoax Networks AB and its competitors. For the Hardware industry, the median ROC % is 4.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InCoax Networks AB's current ROC % is -39.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is InCoax Networks AB stock overvalued right now?
Based on GuruFocus' analysis, InCoax Networks AB (OSTO:INCOAX) is currently considered Significantly Overvalued. The stock's GF Value™ is kr0.46, compared to a current price of kr1.04 — trading 126.1% above its estimated fair value. The current ROC % is -39.81%. InCoax Networks AB's overall GF Score™ is 47/100 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 InCoax Networks AB (OSTO:INCOAX), the current ROC % is -39.81% 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 InCoax Networks AB (OSTO:INCOAX) Overvalued in 2026?
Based on GuruFocus' analysis, InCoax Networks AB stock appears to be overvalued.
The current stock price of kr1.04 is trading 126.1% above its estimated GF Value™ of kr0.46.
GuruFocus considers InCoax Networks AB to be Significantly Overvalued.
Key valuation signals for OSTO:INCOAX:
ROC %: -39.81%
GF Value™: kr0.46 vs. price of kr1.04 (126.1% above fair value)
No single metric tells the full story. See the OSTO:INCOAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
InCoax Networks AB is a Swedish technology company that develops system solutions for broadband access in multi-dwelling buildings and other properties with existing coaxial cabling. The company's products include Incoax, Fiber Access & Fixed Wireless Access (FWA) Extension Over Coax, MoCA Access 2.5 standard, Whitepaper, in:xtnd Control, 5 Gbps InCoax Access, InCoax Combine, InCoax Manage CLM. The business model is mainly based on hardware sales, complemented by software, support, and maintenance. In larger rollouts, market development and delivery often take place together with distributors, resellers, and system integrators. Its customer mainly targets operators that need a faster and more cost-effective and second important customer group is FWA operators.
47GF Score
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