ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gatekeeper Systems's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 3.67%.
As of today (2026-06-29), Gatekeeper Systems's WACC % is 20.25%. Gatekeeper Systems's ROC % is -17.23% (calculated using TTM income statement data).
Gatekeeper Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Gatekeeper Systems (TSXV:GSI) 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, Gatekeeper Systems's WACC % is 20.25%. Gatekeeper Systems's ROC % is -17.23% (calculated using TTM income statement data).
Gatekeeper Systems 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.
Gatekeeper Systems ROC % Related Terms
Gatekeeper Systems ROC % Historical Data
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The historical data trend for Gatekeeper Systems'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 four times the quarterly (Feb. 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.
Gatekeeper Systems (TSXV:GSI) has a ROC % of 3.67% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gatekeeper Systems and its competitors.
Is Gatekeeper Systems' ROC % too high?
Gatekeeper Systems' current ROC % is 3.67%. The Business Services industry median ROC % is 5.93. Gatekeeper Systems' value of 3.67% is 38.1% below this industry median. Overall, Gatekeeper Systems has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gatekeeper Systems' ROC % compare to ALLE and MSA?
Gatekeeper Systems' ROC % of 3.67% can be compared against companies in the Business Services industry. The industry median ROC % is 5.93. Gatekeeper Systems' value of 3.67% is 38.1% below 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 Business Services company?
The median ROC % among Business Services companies is 5.93, based on 1,075 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. Gatekeeper Systems's current ROC % of 3.67% is 38.1% below 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 Gatekeeper Systems and its competitors. For the Business Services industry, the median ROC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gatekeeper Systems's current ROC % is 3.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gatekeeper Systems stock overvalued right now?
Based on GuruFocus' analysis, Gatekeeper Systems (TSXV:GSI) is currently considered Significantly Overvalued. The stock's GF Value™ is C$0.66, compared to a current price of C$1.42 — trading 115.2% above its estimated fair value. The current ROC % is 3.67% and 38.1% below the Business Services industry median of 5.93. Gatekeeper Systems' overall GF Score™ is 64/100 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 Gatekeeper Systems (TSXV:GSI), the current ROC % is 3.67% as of Feb. 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 Gatekeeper Systems (TSXV:GSI) Overvalued in 2026?
Based on GuruFocus' analysis, Gatekeeper Systems stock appears to be overvalued.
The current stock price of C$1.42 is trading 115.2% above its estimated GF Value™ of C$0.66.
GuruFocus considers Gatekeeper Systems to be Significantly Overvalued.
Key valuation signals for TSXV:GSI:
ROC %: 3.67%
GF Value™: C$0.66 vs. price of C$1.42 (115.2% above fair value)
Industry Position: 38.1% below the Business Services median
No single metric tells the full story. See the TSXV:GSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gatekeeper Systems Inc specializes in the design, manufacturing, and marketing of video security solutions for mobile and extreme environments and is a provider of intelligent video solutions designed to provide a safer transportation environment for children, passengers, and public safety personnel across multiple transportation modes. The Company operates in a single segment in which it develops, manufactures, markets, and sells high-resolution mobile surveillance camera systems, with performance evaluated regularly by the President and Chief Executive Officer as the chief operating decision maker. Revenue is generated from two regions, Canada and the United States, with the majority of revenue coming from Canada.
64GF Score
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