ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Pierce Group AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -1.57%.
As of today (2026-07-03), Pierce Group AB's WACC % is 5.03%. Pierce Group AB's ROC % is 4.61% (calculated using TTM income statement data).
Pierce Group AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pierce Group AB (OSTO:PIERCE) 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, Pierce Group AB's WACC % is 5.03%. Pierce Group AB's ROC % is 4.61% (calculated using TTM income statement data).
Pierce Group 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.
Pierce Group AB ROC % Related Terms
Pierce Group AB ROC % Historical Data
* Premium members only.
The historical data trend for Pierce Group 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.
Pierce Group AB (OSTO:PIERCE) has a ROC % of -1.57% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Pierce Group AB and its competitors.
Is Pierce Group AB's ROC % too high?
Pierce Group AB's current ROC % is -1.57%. Overall, Pierce Group AB has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pierce Group AB's ROC % compare to ORLY and AZO?
Pierce Group AB's ROC % of -1.57% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.07. 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.07, based on 1,314 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 Pierce Group AB and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pierce Group AB's current ROC % is -1.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pierce Group AB stock overvalued right now?
Based on GuruFocus' analysis, Pierce Group AB (OSTO:PIERCE) is currently considered Fairly Valued. The stock's GF Value™ is kr9.79, compared to a current price of kr10.38 — trading 6% above its estimated fair value. The current ROC % is -1.57%. Pierce Group AB's overall GF Score™ is 66/100 with 4 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 Pierce Group AB (OSTO:PIERCE), the current ROC % is -1.57% 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 Pierce Group AB (OSTO:PIERCE) Overvalued in 2026?
Based on GuruFocus' analysis, Pierce Group AB stock appears to be overvalued.
The current stock price of kr10.38 is trading 6% above its estimated GF Value™ of kr9.79.
GuruFocus considers Pierce Group AB to be Fairly Valued.
Key valuation signals for OSTO:PIERCE:
ROC %: -1.57%
GF Value™: kr9.79 vs. price of kr10.38 (6% above fair value)
No single metric tells the full story. See the OSTO:PIERCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pierce Group AB is an e-commerce company engaged in the sale of motorcycle and snowmobile gear, parts, accessories, and streetwear through its online stores, including 24MX, XLMOTO, and Sledstore. The company operates across European markets with a local online presence. It reports its business as a single operating segment. Geographically, the company generates the majority of its revenue from markets outside the Nordics, particularly Germany, France, Italy, and the United Kingdom, followed by Sweden and other Nordic regions.
66GF Score
Get the complete analysis for OSTO:PIERCE
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
OSTO:PIERCE has been successfully added to your 
