ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Steven Madden's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 21.20%.
As of today (2026-06-25), Steven Madden's WACC % is 12.82%. Steven Madden's ROC % is 6.80% (calculated using TTM income statement data).
Steven Madden earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Steven Madden (NAS:SHOO) 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, Steven Madden's WACC % is 12.82%. Steven Madden's ROC % is 6.80% (calculated using TTM income statement data).
Steven Madden 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.
Steven Madden ROC % Related Terms
Steven Madden ROC % Historical Data
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The historical data trend for Steven Madden'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.
Steven Madden (SHOO) has a ROC % of 21.20% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Steven Madden and its competitors.
Is Steven Madden's ROC % too high?
Steven Madden's current ROC % is 21.20%. The Manufacturing - Apparel & Accessories industry median ROC % is 2.90. Steven Madden's value of 21.20% is 631% above this industry median. Overall, Steven Madden has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Steven Madden's ROC % compare to WWW and CROX?
Steven Madden's ROC % of 21.20% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 2.90. Steven Madden's value of 21.20% is 631% 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 Manufacturing - Apparel & Accessories company?
The median ROC % among Manufacturing - Apparel & Accessories companies is 2.90, based on 1,049 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. Steven Madden's current ROC % of 21.20% is 631% 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 Steven Madden and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steven Madden's current ROC % is 21.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steven Madden stock overvalued right now?
Based on GuruFocus' analysis, Steven Madden (SHOO) is currently considered Modestly Undervalued. The stock's GF Value™ is $49.26, compared to a current price of $42.29 — trading 14.1% below its estimated fair value. The current ROC % is 21.20% and 631% above the Manufacturing - Apparel & Accessories industry median of 2.90. Steven Madden's overall GF Score™ is 92/100 with 6 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 Steven Madden (SHOO), the current ROC % is 21.20% 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 Steven Madden (SHOO) Overvalued in 2026?
Based on GuruFocus' analysis, Steven Madden stock appears to be undervalued.
The current stock price of $42.29 is trading 14.1% below its estimated GF Value™ of $49.26.
GuruFocus considers Steven Madden to be Modestly Undervalued.
Key valuation signals for SHOO:
ROC %: 21.20%
GF Value™: $49.26 vs. price of $42.29 (14.1% below fair value)
Industry Position: 631% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the SHOO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Steven Madden Ltd and its subsidiaries design, source, and market branded and private label footwear, accessories, and apparel. Its offerings include contemporary styles and core products, known for design creativity, trend-right offerings, high quality, and accessible price points. It operates through four segments: Wholesale Footwear, which generates maximum revenue and sells footwear globally; Wholesale Accessories/Apparel, which sells handbags and apparel through wholesale channels; Direct-to-Consumer, which sells footwear, handbags, apparel, and accessories through stores, outlets, e-commerce, and concessions; and Licensing, which licenses Steve Madden, Betsey Johnson, and Kurt Geiger trademarks, with the Company generating the majority of its revenue from the USA.
92GF Score
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