ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kentima Holding AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.87%.
As of today (2026-07-12), Kentima Holding AB's WACC % is 3.98%. Kentima Holding AB's ROC % is 12.93% (calculated using TTM income statement data).
Kentima Holding AB 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.
Kentima Holding AB (OSTO:KENH) 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, Kentima Holding AB's WACC % is 3.98%. Kentima Holding AB's ROC % is 12.93% (calculated using TTM income statement data).
Kentima Holding AB 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.
Kentima Holding AB ROC % Related Terms
Kentima Holding AB ROC % Historical Data
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The historical data trend for Kentima Holding 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.
Kentima Holding AB (OSTO:KENH) has a ROC % of 2.87% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kentima Holding AB and its competitors.
Is Kentima Holding AB's ROC % too high?
Kentima Holding AB's current ROC % is 2.87%. The Software industry median ROC % is 3.09. Kentima Holding AB's value of 2.87% is 7.1% below this industry median. Overall, Kentima Holding AB has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kentima Holding AB's ROC % compare to UBER and SHOP?
Kentima Holding AB's ROC % of 2.87% can be compared against companies in the Software industry. The industry median ROC % is 3.09. Kentima Holding AB's value of 2.87% is 7.1% 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 a Software company?
The median ROC % among Software companies is 3.09, based on 2,829 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. Kentima Holding AB's current ROC % of 2.87% is 7.1% 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 Kentima Holding AB and its competitors. For the Software industry, the median ROC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kentima Holding AB's current ROC % is 2.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kentima Holding AB stock overvalued right now?
Based on GuruFocus' analysis, Kentima Holding AB (OSTO:KENH) is currently considered Modestly Undervalued. The stock's GF Value™ is kr2.91, compared to a current price of kr2.46 — trading 15.5% below its estimated fair value. The current ROC % is 2.87% and 7.1% below the Software industry median of 3.09. Kentima Holding AB's overall GF Score™ is 58/100 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 Kentima Holding AB (OSTO:KENH), the current ROC % is 2.87% 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 Kentima Holding AB (OSTO:KENH) Overvalued in 2026?
Based on GuruFocus' analysis, Kentima Holding AB stock appears to be undervalued.
The current stock price of kr2.46 is trading 15.5% below its estimated GF Value™ of kr2.91.
GuruFocus considers Kentima Holding AB to be Modestly Undervalued.
Key valuation signals for OSTO:KENH:
ROC %: 2.87%
GF Value™: kr2.91 vs. price of kr2.46 (15.5% below fair value)
No single metric tells the full story. See the OSTO:KENH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kentima Holding AB develops, manufactures and sells products for the automation and security sector. Within the business area of Automation, it develops products that monitor machines and whole process plants. The products have a wide range of applications, are easy to integrate with other products and provide the operator with a modern, easy-to-use interface. Its automation products include HMI/SCADA software, industrial computers, and operator panels/boxes. Within the business area Security , it develops products for increased safety in the community. It offers VMS systems and security management platforms that meet market demands for flexibility, stability, and easy integration with other systems.
58GF Score
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