ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hensoldt AG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -0.37%.
As of today (2026-06-27), Hensoldt AG's WACC % is 3.94%. Hensoldt AG's ROC % is 3.92% (calculated using TTM income statement data).
Hensoldt AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hensoldt AG (WBO:HAG) 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, Hensoldt AG's WACC % is 3.94%. Hensoldt AG's ROC % is 3.92% (calculated using TTM income statement data).
Hensoldt AG 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.
Hensoldt AG ROC % Related Terms
Hensoldt AG ROC % Historical Data
* Premium members only.
The historical data trend for Hensoldt AG'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 (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.
Hensoldt AG (WBO:HAG) has a ROC % of -0.37% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hensoldt AG and its competitors.
Is Hensoldt AG's ROC % too high?
Hensoldt AG's current ROC % is -0.37%. Overall, Hensoldt AG has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hensoldt AG's ROC % compare to GE and RTX?
Hensoldt AG's ROC % of -0.37% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.45. 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. 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 Hensoldt AG 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. Hensoldt AG's current ROC % is -0.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hensoldt AG stock overvalued right now?
Based on GuruFocus' analysis, Hensoldt AG (WBO:HAG) is currently considered Significantly Overvalued. The stock's GF Value™ is €47.65, compared to a current price of €64.72 — trading 35.8% above its estimated fair value. The current ROC % is -0.37%. Hensoldt AG's overall GF Score™ is 58/100 with 2 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 Hensoldt AG (WBO:HAG), the current ROC % is -0.37% 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 Hensoldt AG (WBO:HAG) Overvalued in 2026?
Based on GuruFocus' analysis, Hensoldt AG stock appears to be overvalued.
The current stock price of €64.72 is trading 35.8% above its estimated GF Value™ of €47.65.
GuruFocus considers Hensoldt AG to be Significantly Overvalued.
Key valuation signals for WBO:HAG:
ROC %: -0.37%
GF Value™: €47.65 vs. price of €64.72 (35.8% above fair value)
No single metric tells the full story. See the WBO:HAG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hensoldt AG specializes in defense and security electronics, operating across two main segments: sensors and optronics, with the majority of its revenue generated by the sensors division. Hensoldt has deep roots and its strongest market presence in Germany, but it also maintains production sites in France, the United Kingdom, and South Africa. Its sales footprint extends across Europe, the Middle East, Asia-Pacific, North America, Africa, Latin America, and other regions.
58GF Score
Get the complete analysis for WBO:HAG
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
WBO:HAG has been successfully added to your 
