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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Quipt Home Medical's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.05%.
As of today (2026-09-09), Quipt Home Medical's WACC % is 9.10%. Quipt Home Medical's ROC % is -0.53% (calculated using TTM income statement data).
Quipt Home Medical earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Quipt Home Medical's WACC % is 9.10%. Quipt Home Medical's ROC % is -0.53% (calculated using TTM income statement data).
Quipt Home Medical 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.
Quipt Home Medical ROC % Related Terms
Quipt Home Medical ROC % Historical Data
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The historical data trend for Quipt Home Medical'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 (Dec. 2025) 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.
Quipt Home Medical (QIPT) has a ROC % of 3.05% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Quipt Home Medical and its competitors.
Is Quipt Home Medical's ROC % too high?
Quipt Home Medical's current ROC % is 3.05%. The Medical Distribution industry median ROC % is 5.29. Quipt Home Medical's value of 3.05% is 42.3% below this industry median. Overall, Quipt Home Medical has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does Quipt Home Medical's ROC % compare to ACH and EDAP?
Quipt Home Medical's ROC % of 3.05% can be compared against companies in the Medical Distribution industry. The industry median ROC % is 5.29. Quipt Home Medical's value of 3.05% is 42.3% 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 Medical Distribution company?
The median ROC % among Medical Distribution companies is 5.29, based on 121 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. Quipt Home Medical's current ROC % of 3.05% is 42.3% 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 Quipt Home Medical and its competitors. For the Medical Distribution industry, the median ROC % is 5.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quipt Home Medical's current ROC % is 3.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quipt Home Medical stock overvalued right now?
Quipt Home Medical (QIPT) has a current ROC % of 3.05%. The stock's GF Value™ is $3.77, compared to a current price of $3.65 — trading 3.2% below its estimated fair value. The current ROC % is 3.05% and 42.3% below the Medical Distribution industry median of 5.29. Quipt Home Medical's overall GF Score™ is 62/100 with 7 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 Quipt Home Medical (QIPT), the current ROC % is 3.05% as of Dec. 2025. 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 Quipt Home Medical (QIPT) Overvalued in 2026?
Based on GuruFocus' analysis, Quipt Home Medical stock appears to be undervalued.
The current stock price of $3.65 is trading 3.2% below its estimated GF Value™ of $3.77.
Key valuation signals for QIPT:
ROC %: 3.05%
GF Value™: $3.77 vs. price of $3.65 (3.2% below fair value)
Industry Position: 42.3% below the Medical Distribution median
No single metric tells the full story. See the QIPT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Quipt Home Medical Corp is a provider of durable medical equipment (DME) and home medical equipment (HME) in the United States. The Company specializes in delivering in-home treatments for the management of chronic conditions, with a primary focus on respiratory diseases, and supports patients with heart and pulmonary diseases, sleep apnea, reduced mobility, and other chronic health challenges. Its products and services include Sleep Apnea and PAP treatment, home medical equipment, home ventilation, and custom mobility solutions. The Company operates in a single business segment, comprising the sale and rental of medical equipment and related devices, and serves patients across 27 states in the United States.
62GF Score
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