ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nitro Games's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.97%.
As of today (2026-06-26), Nitro Games's WACC % is 7.47%. Nitro Games's ROC % is 4.98% (calculated using TTM income statement data).
Nitro Games earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Nitro Games (OSTO:NITRO) 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, Nitro Games's WACC % is 7.47%. Nitro Games's ROC % is 4.98% (calculated using TTM income statement data).
Nitro Games 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.
Nitro Games ROC % Related Terms
Nitro Games ROC % Historical Data
* Premium members only.
The historical data trend for Nitro Games'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.
Nitro Games (OSTO:NITRO) has a ROC % of 8.97% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nitro Games and its competitors.
Is Nitro Games' ROC % too high?
Nitro Games' current ROC % is 8.97%. The Interactive Media industry median ROC % is 1.88. Nitro Games' value of 8.97% is 377.1% above this industry median. Overall, Nitro Games has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nitro Games' ROC % compare to NTES and EA?
Nitro Games' ROC % of 8.97% can be compared against companies in the Interactive Media industry. The industry median ROC % is 1.88. Nitro Games' value of 8.97% is 377.1% 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 Interactive Media company?
The median ROC % among Interactive Media companies is 1.88, based on 560 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. Nitro Games's current ROC % of 8.97% is 377.1% 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 Nitro Games and its competitors. For the Interactive Media industry, the median ROC % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nitro Games's current ROC % is 8.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nitro Games stock overvalued right now?
Based on GuruFocus' analysis, Nitro Games (OSTO:NITRO) is currently considered Significantly Overvalued. The stock's GF Value™ is kr1.44, compared to a current price of kr2.00 — trading 38.9% above its estimated fair value. The current ROC % is 8.97% and 377.1% above the Interactive Media industry median of 1.88. Nitro Games' overall GF Score™ is 59/100 with 8 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 Nitro Games (OSTO:NITRO), the current ROC % is 8.97% 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 Nitro Games (OSTO:NITRO) Overvalued in 2026?
Based on GuruFocus' analysis, Nitro Games stock appears to be overvalued.
The current stock price of kr2.00 is trading 38.9% above its estimated GF Value™ of kr1.44.
GuruFocus considers Nitro Games to be Significantly Overvalued.
Key valuation signals for OSTO:NITRO:
ROC %: 8.97%
GF Value™: kr1.44 vs. price of kr2.00 (38.9% above fair value)
Industry Position: 377.1% above the Interactive Media median
No single metric tells the full story. See the OSTO:NITRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nitro Games PLC is a free-to-play mobile game developer and publisher. It develops and publishes games for international distribution and sells its expertise as a service to international gaming players as part of its services business. The company specializes in action and shooter games. It has developed games such as East India Company, Commander: Conquest of the Americas, Pirates of Black Cove, Raids of Glory, and many more. Geographically, the company generates the majority of its revenue from North America, and the rest from the EU, the United Kingdom, and other countries.
59GF Score
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