ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Watches of Switzerland Group's annualized return on capital (ROC %) for the quarter that ended in Oct. 2025 was 9.18%.
As of today (2026-06-24), Watches of Switzerland Group's WACC % is 11.35%. Watches of Switzerland Group's ROC % is 10.26% (calculated using TTM income statement data).
Watches of Switzerland Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Watches of Switzerland Group (STU:5WS) 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, Watches of Switzerland Group's WACC % is 11.35%. Watches of Switzerland Group's ROC % is 10.26% (calculated using TTM income statement data).
Watches of Switzerland Group 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.
Watches of Switzerland Group ROC % Related Terms
Watches of Switzerland Group ROC % Historical Data
* 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 two times the semi-annual (Oct. 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.
Watches of Switzerland Group (STU:5WS) has a ROC % of 9.18% as of Oct. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Watches of Switzerland Group and its competitors.
Is Watches of Switzerland Group's ROC % too high?
Watches of Switzerland Group's current ROC % is 9.18%. The Retail - Cyclical industry median ROC % is 4.36. Watches of Switzerland Group's value of 9.18% is 110.6% above this industry median. Overall, Watches of Switzerland Group has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watches of Switzerland Group's ROC % compare to TPR and SIG?
Watches of Switzerland Group's ROC % of 9.18% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.36. Watches of Switzerland Group's value of 9.18% is 110.6% 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 Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.36, based on 1,114 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. Watches of Switzerland Group's current ROC % of 9.18% is 110.6% 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 Watches of Switzerland Group and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watches of Switzerland Group's current ROC % is 9.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watches of Switzerland Group stock overvalued right now?
Based on GuruFocus' analysis, Watches of Switzerland Group (STU:5WS) is currently considered Modestly Overvalued. The stock's GF Value™ is €6.26, compared to a current price of €8.05 — trading 28.6% above its estimated fair value. The current ROC % is 9.18% and 110.6% above the Retail - Cyclical industry median of 4.36. Watches of Switzerland Group's overall GF Score™ is 87/100 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 Watches of Switzerland Group (STU:5WS), the current ROC % is 9.18% as of Oct. 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 Watches of Switzerland Group (STU:5WS) Overvalued in 2026?
Based on GuruFocus' analysis, Watches of Switzerland Group stock appears to be overvalued.
The current stock price of €8.05 is trading 28.6% above its estimated GF Value™ of €6.26.
GuruFocus considers Watches of Switzerland Group to be Modestly Overvalued.
Key valuation signals for STU:5WS:
ROC %: 9.18%
GF Value™: €6.26 vs. price of €8.05 (28.6% above fair value)
Industry Position: 110.6% above the Retail - Cyclical median
No single metric tells the full story. See the STU:5WS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watches of Switzerland Group PLC is a retailer of luxury watches and jewellerys in the United Kingdom. Other than luxury watch offerings, the company also offers luxury jewellery, fashion, and classic watches and a range of watch and jewellery aftercare services. The company's geographical segments are the United Kingdom and Europe, and the United States, of which the majority of the revenue comes from the United Kingdom and Europe segment.
87GF Score
Get the complete analysis for STU:5WS
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:5WS has been successfully added to your 
