ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. PURE Bioscience's annualized return on capital (ROC %) for the quarter that ended in Apr. 2026 was -84.38%.
As of today (2026-06-24), PURE Bioscience's WACC % is 4.45%. PURE Bioscience's ROC % is -135.94% (calculated using TTM income statement data).
PURE Bioscience earns returns that do not match up to its cost of capital. It will destroy value as it grows.
PURE Bioscience (OTCPK:PURE) 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, PURE Bioscience's WACC % is 4.45%. PURE Bioscience's ROC % is -135.94% (calculated using TTM income statement data).
PURE Bioscience 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.
PURE Bioscience ROC % Related Terms
PURE Bioscience ROC % Historical Data
* Premium members only.
The historical data trend for PURE Bioscience'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 (Apr. 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.
PURE Bioscience (PURE) has a ROC % of -84.38% as of Apr. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on PURE Bioscience and its competitors.
Is PURE Bioscience's ROC % too high?
PURE Bioscience's current ROC % is -84.38%.
How does PURE Bioscience's ROC % compare to RAY and DSY?
PURE Bioscience's ROC % of -84.38% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.16. 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.16, based on 1,948 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 PURE Bioscience and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PURE Bioscience's current ROC % is -84.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PURE Bioscience stock overvalued right now?
Based on GuruFocus' analysis, PURE Bioscience (PURE) is currently considered Possible Value Trap. The stock's GF Value™ is $0.10, compared to a current price of $0.07 — trading 33.3% below its estimated fair value. The current ROC % is -84.38%. 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 PURE Bioscience (PURE), the current ROC % is -84.38% as of Apr. 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.
PURE Bioscience Inc is engaged in developing and commercializing proprietary antimicrobial products. The company's technology platform is based on patented stabilized ionic silver, and its initial products contain silver dihydrogen citrate, or SDC. It offers PURE Hard Surface as a food contact surface sanitizer and disinfectant to restaurant chains, food processors and food transportation companies and PURE Control as a direct food contact processing aid. It also manufactures and sells SDC-based products for end use, and products preserved with SDC and SDC as a raw material ingredient for manufacturing use. The company generates revenue from the sale of its antimicrobial products.
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