ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ermenegildo Zegna NV's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 6.17%.
As of today (2026-06-30), Ermenegildo Zegna NV's WACC % is 11.16%. Ermenegildo Zegna NV's ROC % is 5.24% (calculated using TTM income statement data).
Ermenegildo Zegna NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ermenegildo Zegna NV (STU:JN0) 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, Ermenegildo Zegna NV's WACC % is 11.16%. Ermenegildo Zegna NV's ROC % is 5.24% (calculated using TTM income statement data).
Ermenegildo Zegna NV 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.
* 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.
Ermenegildo Zegna NV (STU:JN0) has a ROC % of 6.17% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ermenegildo Zegna NV and its competitors.
Is Ermenegildo Zegna NV's ROC % too high?
Ermenegildo Zegna NV's current ROC % is 6.17%. The Manufacturing - Apparel & Accessories industry median ROC % is 2.91. Ermenegildo Zegna NV's value of 6.17% is 112% above this industry median. Overall, Ermenegildo Zegna NV has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ermenegildo Zegna NV's ROC % compare to PVH and COLM?
Ermenegildo Zegna NV's ROC % of 6.17% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 2.91. Ermenegildo Zegna NV's value of 6.17% is 112% 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 2.91, based on 1,047 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. Ermenegildo Zegna NV's current ROC % of 6.17% is 112% 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 Ermenegildo Zegna NV and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ermenegildo Zegna NV's current ROC % is 6.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ermenegildo Zegna NV stock overvalued right now?
Based on GuruFocus' analysis, Ermenegildo Zegna NV (STU:JN0) is currently considered Modestly Overvalued. The stock's GF Value™ is €9.87, compared to a current price of €11.18 — trading 13.3% above its estimated fair value. The current ROC % is 6.17% and 112% above the Manufacturing - Apparel & Accessories industry median of 2.91. Ermenegildo Zegna NV's overall GF Score™ is 82/100 with 3 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 Ermenegildo Zegna NV (STU:JN0), the current ROC % is 6.17% 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 Ermenegildo Zegna NV (STU:JN0) Overvalued in 2026?
Based on GuruFocus' analysis, Ermenegildo Zegna NV stock appears to be overvalued.
The current stock price of €11.18 is trading 13.3% above its estimated GF Value™ of €9.87.
GuruFocus considers Ermenegildo Zegna NV to be Modestly Overvalued.
Key valuation signals for STU:JN0:
ROC %: 6.17%
GF Value™: €9.87 vs. price of €11.18 (13.3% above fair value)
Industry Position: 112% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the STU:JN0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ermenegildo Zegna NV designs creates, and distributes luxury menswear and accessories under the Zegna brand, as well as womenswear, menswear, and accessories under the Thom Browne brand. The company operates in three segments: the Zegna segment (comprising three product lines: Zegna Branded Products, Textile, and Third Party Brands); the Thom Browne segment, and the Tom Ford Fashion segment. The company generates the majority of revenue from the Zegna segment.
82GF Score
Get the complete analysis for STU:JN0
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:JN0 has been successfully added to your 
