ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Theon International's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 36.55%.
As of today (2026-06-29), Theon International's WACC % is 10.23%. Theon International's ROC % is 33.61% (calculated using TTM income statement data).
Theon 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.
Theon International (STU:W8C) 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, Theon International's WACC % is 10.23%. Theon International's ROC % is 33.61% (calculated using TTM income statement data).
Theon 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.
Theon International ROC % Related Terms
Theon International ROC % Historical Data
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The historical data trend for Theon International'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.
Theon International (STU:W8C) has a ROC % of 36.55% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Theon International and its competitors.
Is Theon International's ROC % too high?
Theon International's current ROC % is 36.55%. The Aerospace & Defense industry median ROC % is 4.45. Theon International's value of 36.55% is 721.3% above this industry median. Overall, Theon International has a GF Score™ of 47/100, reflecting its overall financial health beyond just this single metric.
How does Theon International's ROC % compare to SPCX and GE?
Theon International's ROC % of 36.55% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.45. Theon International's value of 36.55% is 721.3% 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 Aerospace & Defense company?
The median ROC % among Aerospace & Defense companies is 4.45, based on 351 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. Theon International's current ROC % of 36.55% is 721.3% 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 Theon International and its competitors. For the Aerospace & Defense industry, the median ROC % is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Theon International's current ROC % is 36.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Theon International stock overvalued right now?
Theon International (STU:W8C) has a current ROC % of 36.55%. The current ROC % is 36.55% and 721.3% above the Aerospace & Defense industry median of 4.45. Theon International's overall GF Score™ is 47/100 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 Theon International (STU:W8C), the current ROC % is 36.55% 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.
Theon International PLC is a defense and security technology company specializing in electro-optical systems and integrated solutions for military and security applications. It develops and manufactures night vision and thermal imaging systems used by defense and security organizations. The company operates internationally through subsidiaries and production facilities across multiple regions. Its products are used by armed forces and security agencies in various countries. In addition to electro-optical systems, it develops integrated soldier systems, ISR optronics, and platform solutions for land and maritime environments.
47GF Score
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