ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Webco Industries's annualized return on capital (ROC %) for the quarter that ended in Jul. 2023 was 8.36%.
As of today (2026-06-25), Webco Industries's WACC % is 0.00%. Webco Industries's ROC % is 0.00% (calculated using TTM income statement data).
Webco Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Webco Industries (OTCPK:WEBC) 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, Webco Industries's WACC % is 0.00%. Webco Industries's ROC % is 0.00% (calculated using TTM income statement data).
Webco Industries 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.
Webco Industries ROC % Related Terms
Webco Industries ROC % Historical Data
* Premium members only.
The historical data trend for Webco Industries'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 one times the annual (Jul. 2023) 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.
Webco Industries (WEBC) has a ROC % of 8.36% as of Jul. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Webco Industries and its competitors.
Is Webco Industries' ROC % too high?
Webco Industries' current ROC % is 8.36%. The Steel industry median ROC % is 2.61. Webco Industries' value of 8.36% is 220.3% above this industry median. Overall, Webco Industries has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Webco Industries' ROC % compare to ACNT and FRD?
Webco Industries' ROC % of 8.36% can be compared against companies in the Steel industry. The industry median ROC % is 2.61. Webco Industries' value of 8.36% is 220.3% 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 a Steel company?
The median ROC % among Steel companies is 2.61, based on 625 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. Webco Industries's current ROC % of 8.36% is 220.3% 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 Webco Industries and its competitors. For the Steel industry, the median ROC % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Webco Industries's current ROC % is 8.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Webco Industries stock overvalued right now?
Webco Industries (WEBC) has a current ROC % of 8.36%. The current ROC % is 8.36% and 220.3% above the Steel industry median of 2.61. Webco Industries' overall GF Score™ is 12/100. 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 Webco Industries (WEBC), the current ROC % is 8.36% as of Jul. 2023. 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.
Webco Industries Inc is a specialty manufacturer and seller of high-quality carbon and stainless steel tubing products that are designed to industry and customer specifications. The company's products includes Welded tubing; Cold drawn- Welded and Cold drawn- Seamless. Its value-added services include bending, custom mill length, end formed/swaged, finning, heat treating, packaging, precision cutting, product availability and responsiveness.
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