ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tyson Foods's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.20%.
As of today (2026-06-24), Tyson Foods's WACC % is 4.84%. Tyson Foods's ROC % is 3.11% (calculated using TTM income statement data).
Tyson Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tyson Foods (WBO:TSN) 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, Tyson Foods's WACC % is 4.84%. Tyson Foods's ROC % is 3.11% (calculated using TTM income statement data).
Tyson Foods 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.
Tyson Foods ROC % Related Terms
Tyson Foods ROC % Historical Data
* Premium members only.
The historical data trend for Tyson Foods'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.
Tyson Foods (WBO:TSN) has a ROC % of 4.20% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tyson Foods and its competitors.
Is Tyson Foods' ROC % too high?
Tyson Foods' current ROC % is 4.20%. The Consumer Packaged Goods industry median ROC % is 5.16. Tyson Foods' value of 4.20% is 18.6% below this industry median. Overall, Tyson Foods has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Tyson Foods' ROC % compare to BG and ADM?
Tyson Foods' ROC % of 4.20% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.16. Tyson Foods' value of 4.20% is 18.6% 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.16, based on 1,948 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. Tyson Foods's current ROC % of 4.20% is 18.6% 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 Tyson Foods and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tyson Foods's current ROC % is 4.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tyson Foods stock overvalued right now?
Tyson Foods (WBO:TSN) has a current ROC % of 4.20%. The stock's GF Value™ is €51.91, compared to a current price of €49.79 — trading 4.1% below its estimated fair value. The current ROC % is 4.20% and 18.6% below the Consumer Packaged Goods industry median of 5.16. Tyson Foods' overall GF Score™ is 76/100 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 Tyson Foods (WBO:TSN), the current ROC % is 4.20% 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 Tyson Foods (WBO:TSN) Overvalued in 2026?
Based on GuruFocus' analysis, Tyson Foods stock appears to be undervalued.
The current stock price of €49.79 is trading 4.1% below its estimated GF Value™ of €51.91.
Key valuation signals for WBO:TSN:
ROC %: 4.20%
GF Value™: €51.91 vs. price of €49.79 (4.1% below fair value)
Industry Position: 18.6% below the Consumer Packaged Goods median
No single metric tells the full story. See the WBO:TSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tyson Foods is a protein-focused food producer, selling raw chicken, beef, pork, and prepared foods. Chicken and beef are its two largest segments, composing about 40% and 30% of sales, respectively. Prepared foods constituted 18% of fiscal 2025 sales and include brands like Tyson, Jimmy Dean, Hillshire Farm, Ball Park, and Sara Lee. However, most of these are in product categories rife with competition where Tyson does not have a massive market share lead. Tyson sells some products overseas, but the international segment accounts for just 4% of total revenue. The company is an active acquirer, with more recent years' purchases focused on international and food-service markets.
76GF Score
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