ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Bell Equipment's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 5.53%.
As of today (2026-06-27), Bell Equipment's WACC % is 11.54%. Bell Equipment's ROC % is 5.52% (calculated using TTM income statement data).
Bell Equipment earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Bell Equipment (STU:B2K) 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, Bell Equipment's WACC % is 11.54%. Bell Equipment's ROC % is 5.52% (calculated using TTM income statement data).
Bell Equipment 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.
Bell Equipment ROC % Related Terms
Bell Equipment ROC % Historical Data
* Premium members only.
The historical data trend for Bell Equipment'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 two times the semi-annual (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.
Bell Equipment (STU:B2K) has a ROC % of 5.53% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Bell Equipment and its competitors.
Is Bell Equipment's ROC % too high?
Bell Equipment's current ROC % is 5.53%. The Farm & Heavy Construction Machinery industry median ROC % is 5.47. Bell Equipment's value of 5.53% is 1.1% above this industry median. Overall, Bell Equipment has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bell Equipment's ROC % compare to CAT and DE?
Bell Equipment's ROC % of 5.53% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROC % is 5.47. Bell Equipment's value of 5.53% is 1.1% 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 Farm & Heavy Construction Machinery company?
The median ROC % among Farm & Heavy Construction Machinery companies is 5.47, based on 207 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. Bell Equipment's current ROC % of 5.53% is 1.1% 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 Bell Equipment and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROC % is 5.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bell Equipment's current ROC % is 5.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bell Equipment stock overvalued right now?
Based on GuruFocus' analysis, Bell Equipment (STU:B2K) is currently considered Modestly Overvalued. The stock's GF Value™ is €1.59, compared to a current price of €1.78 — trading 11.9% above its estimated fair value. The current ROC % is 5.53% and 1.1% above the Farm & Heavy Construction Machinery industry median of 5.47. Bell Equipment's overall GF Score™ is 78/100 with 4 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 Bell Equipment (STU:B2K), the current ROC % is 5.53% 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 Bell Equipment (STU:B2K) Overvalued in 2026?
Based on GuruFocus' analysis, Bell Equipment stock appears to be overvalued.
The current stock price of €1.78 is trading 11.9% above its estimated GF Value™ of €1.59.
GuruFocus considers Bell Equipment to be Modestly Overvalued.
Key valuation signals for STU:B2K:
ROC %: 5.53%
GF Value™: €1.59 vs. price of €1.78 (11.9% above fair value)
Industry Position: 1.1% above the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the STU:B2K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bell Equipment Ltd designs and manufactures a wide Collection of products. This includes a complete range of Bell forestry and agriculture products. It seeks to develop and support local suppliers and invests in outreach initiatives with a focus on education, training, and development both internally and externally. It conducts two main business operations Manufacturing, assembly, logistics and dealer sales operations which is OEM operations comprising manufacturing, assembly and sales of equipment and aftermarket products to independent dealers for their distribution to market; and Direct Sales operations which is owned distribution operations for direct sales of own manufactured products, other third party products and the supply of aftermarket support and products to market.
78GF Score
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