ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sesa SpA's annualized return on capital (ROC %) for the quarter that ended in Jan. 2026 was 8.01%.
As of today (2026-06-26), Sesa SpA's WACC % is 6.27%. Sesa SpA's ROC % is 5.08% (calculated using TTM income statement data).
Sesa SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sesa SpA (OTCPK:SESPF) 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, Sesa SpA's WACC % is 6.27%. Sesa SpA's ROC % is 5.08% (calculated using TTM income statement data).
Sesa SpA 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.
Sesa SpA ROC % Related Terms
Sesa SpA ROC % Historical Data
* Premium members only.
The historical data trend for Sesa SpA'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 (Jan. 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.
Sesa SpA (SESPF) has a ROC % of 8.01% as of Jan. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sesa SpA and its competitors.
Is Sesa SpA's ROC % too high?
Sesa SpA's current ROC % is 8.01%. The Software industry median ROC % is 3.11. Sesa SpA's value of 8.01% is 158% above this industry median. Overall, Sesa SpA has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sesa SpA's ROC % compare to IBM and ACN?
Sesa SpA's ROC % of 8.01% can be compared against companies in the Software industry. The industry median ROC % is 3.11. Sesa SpA's value of 8.01% is 158% 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 a Software company?
The median ROC % among Software companies is 3.11, based on 2,828 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. Sesa SpA's current ROC % of 8.01% is 158% 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 Sesa SpA 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. Sesa SpA's current ROC % is 8.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sesa SpA stock overvalued right now?
Based on GuruFocus' analysis, Sesa SpA (SESPF) is currently considered Modestly Undervalued. The stock's GF Value™ is $128.63, compared to a current price of $104.00 — trading 19.1% below its estimated fair value. The current ROC % is 8.01% and 158% above the Software industry median of 3.11. Sesa SpA's overall GF Score™ is 87/100 with 11 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 Sesa SpA (SESPF), the current ROC % is 8.01% as of Jan. 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 Sesa SpA (SESPF) Overvalued in 2026?
Based on GuruFocus' analysis, Sesa SpA stock appears to be undervalued.
The current stock price of $104.00 is trading 19.1% below its estimated GF Value™ of $128.63.
GuruFocus considers Sesa SpA to be Modestly Undervalued.
Key valuation signals for SESPF:
ROC %: 8.01%
GF Value™: $128.63 vs. price of $104.00 (19.1% below fair value)
No single metric tells the full story. See the SESPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sesa SpA and its subsidiaries are in the business of the distribution of value-added IT solutions and products. The firm functions through the Business Services Sector, Value Added Distribution, Corporate Sector, and the Software and System Integration segment. The activities of these segments include the distribution of software and hardware technologies, the supply of IT services and solutions, administrative and financial services, organization, planning, and control, management of information technologies, human resources, general, corporate, and legal affairs, activities related to logistics services and cloud computing.
87GF Score
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