ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Power Solutions International's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 10.51%.
As of today (2026-06-28), Power Solutions International's WACC % is 18.00%. Power Solutions International's ROC % is 32.31% (calculated using TTM income statement data).
Power Solutions International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Power Solutions International (STU:VE9) 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, Power Solutions International's WACC % is 18.00%. Power Solutions International's ROC % is 32.31% (calculated using TTM income statement data).
Power Solutions International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Power Solutions International ROC % Related Terms
Power Solutions International 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 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.
Power Solutions International (STU:VE9) has a ROC % of 10.51% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Power Solutions International and its competitors.
Is Power Solutions International's ROC % too high?
Power Solutions International's current ROC % is 10.51%. The Industrial Products industry median ROC % is 5.22. Power Solutions International's value of 10.51% is 101.5% above this industry median. Overall, Power Solutions International has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Power Solutions International's ROC % compare to GHM and SERV?
Power Solutions International's ROC % of 10.51% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.22. Power Solutions International's value of 10.51% is 101.5% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.22, based on 3,034 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. Power Solutions International's current ROC % of 10.51% is 101.5% 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 Power Solutions International and its competitors. For the Industrial Products industry, the median ROC % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Power Solutions International's current ROC % is 10.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Solutions International stock overvalued right now?
Based on GuruFocus' analysis, Power Solutions International (STU:VE9) is currently considered Fairly Valued. The stock's GF Value™ is €31.25, compared to a current price of €33.07 — trading 5.8% above its estimated fair value. The current ROC % is 10.51% and 101.5% above the Industrial Products industry median of 5.22. Power Solutions International's overall GF Score™ is 80/100 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 Power Solutions International (STU:VE9), the current ROC % is 10.51% 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 Power Solutions International (STU:VE9) Overvalued in 2026?
Based on GuruFocus' analysis, Power Solutions International stock appears to be overvalued.
The current stock price of €33.07 is trading 5.8% above its estimated GF Value™ of €31.25.
GuruFocus considers Power Solutions International to be Fairly Valued.
Key valuation signals for STU:VE9:
ROC %: 10.51%
GF Value™: €31.25 vs. price of €33.07 (5.8% above fair value)
Industry Position: 101.5% above the Industrial Products median
No single metric tells the full story. See the STU:VE9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Power Solutions International Business Description
Power Solutions International Inc is an America-based company that manufactures, distributes, and services power systems that run on nondiesel fuels, including natural gas, propane, and gasoline. The company's products are designed to meet emission standards imposed by environmental regulatory bodies like the Environmental Protection Agency. Its products are distributed to a wide range of industrial original equipment manufacturers that supply equipment to sectors including power generation, oil and gas, material handling, airport ground support, agricultural, turf, construction and irrigation. The company generates majority of its sales from United States, and also has its presence in North America (outside of United States), Pacific Rim, Europe and Others.
80GF Score
Get the complete analysis for STU:VE9
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:VE9 has been successfully added to your 
