OTMOW (Otonomo Technologies) ROC %: -125.78% (As of Jun. 2023)

What is Otonomo Technologies ROC %?

Otonomo Technologies OTMOW +34.57% 18 ROC % is -125.78% as of Jun. 2023. GuruFocus rates OTMOW with a GF Score™ of 18/100. The stock has 3 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Otonomo Technologies's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -125.78%.

As of today (2026-06-26), Otonomo Technologies's WACC % is 9.57%. Otonomo Technologies's ROC % is -223.46% (calculated using TTM income statement data). Otonomo Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Otonomo Technologies (NAS:OTMOW) 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, Otonomo Technologies's WACC % is 9.57%. Otonomo Technologies's ROC % is -223.46% (calculated using TTM income statement data). Otonomo Technologies 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.

Otonomo Technologies ROC % Related Terms

Otonomo Technologies ROC % Historical Data

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The historical data trend for Otonomo Technologies'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.

Otonomo Technologies ROC % Chart

Otonomo Technologies Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

ROC %

0.00

-168.89

-112.38

-212.55

Otonomo Technologies Quarterly Data
	Dec19	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROC %	Get a 7-Day Free Trial							-173.52	-189.13	-347.37	-679.96	-125.78

18GF Score

Otonomo Technologies Ltd OTMOW

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Otonomo Technologies ROC % Calculation

Otonomo Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-70.294 * ( 1 - 0% )	/	( (53.854	+	12.289)	/ 2 )
=	-70.294	/	33.0715
=	-212.55 %

where

	Invested Capital		(A: Dec. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	259.439	-	2.498	-	( 207.842	-	max(0, 8.752	-	211.839	+	207.842	))
=	53.854

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	148.646	-	4.488	-	( 140.297	-	max(0, 13.088	-	144.957	+	140.297	))
=	12.289

Otonomo Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-29.996 * ( 1 - 0% )	/	( (6.232	+	41.463)	/ 2 )
=	-29.996	/	23.8475
=	-125.78 %

where

	Invested Capital		(Q: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	135.736	-	11.858	-	( 129.467	-	max(0, 14.989	-	132.635	+	129.467	))
=	6.232

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	124.136	-	6.073	-	( 76.6	-	max(0, 9.919	-	121.238	+	76.6	))
=	41.463

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -125.78% mean?

Otonomo Technologies (OTMOW) has a ROC % of -125.78% as of Jun. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Otonomo Technologies and its competitors.

Is Otonomo Technologies' ROC % too high?

Otonomo Technologies' current ROC % is -125.78%. Overall, Otonomo Technologies has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.

How does Otonomo Technologies' ROC % compare to AEYE and GOLQ?

Otonomo Technologies' ROC % of -125.78% can be compared against companies in the Software industry. The industry median ROC % is 3.11. 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 3.11, based on 2,830 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 Otonomo Technologies and its competitors. For the Software industry, the median ROC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otonomo Technologies's current ROC % is -125.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Otonomo Technologies stock overvalued right now?

Otonomo Technologies (OTMOW) has a current ROC % of -125.78%. The current ROC % is -125.78%. Otonomo Technologies' overall GF Score™ is 18/100 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 Otonomo Technologies (OTMOW), the current ROC % is -125.78% as of Jun. 2023. 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.

Otonomo Technologies Business Description

Industry Technology Software

Comparable Companies AEYE GOLQ PRCH RBT KWIK LVER ULY ZENV INVU DAVE CRM XTER:SAP INTU NOW UBER CDNS SHOP WDAY XPAR:DSY ROP

Address 16 Abba Eban Boulevard, Herzliya Pituach, ISR, 467256

Website https://www.otonomo.io

Otonomo Technologies Ltd is a provider of vehicle data. It delivers the Otonomo Vehicle Data Platform and marketplace that enables car manufacturers, drivers, and service providers to be part of a connected ecosystem. Its vehicle data marketplace is a neutral intermediary between vehicle data providers and data consumers. It provides secure and equal access to hundreds of data attributes that reveal insights into driver behaviour, vehicle health, road hazards, environmental conditions, and traffic trends. Geographically it operates in APAC, and USA whilst earning key revenue from the EMEA region.

18GF Score

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