ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sopharma Trading AD's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 13.88%.
As of today (2026-07-01), Sopharma Trading AD's WACC % is 5.70%. Sopharma Trading AD's ROC % is 11.08% (calculated using TTM income statement data).
Sopharma Trading AD 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.
Sopharma Trading AD (XBUL:SFT) 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, Sopharma Trading AD's WACC % is 5.70%. Sopharma Trading AD's ROC % is 11.08% (calculated using TTM income statement data).
Sopharma Trading AD 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.
Sopharma Trading AD ROC % Related Terms
Sopharma Trading AD ROC % Historical Data
* Premium members only.
The historical data trend for Sopharma Trading AD'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.
Sopharma Trading AD (XBUL:SFT) has a ROC % of 13.88% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sopharma Trading AD and its competitors.
Is Sopharma Trading AD's ROC % too high?
Sopharma Trading AD's current ROC % is 13.88%. The Medical Distribution industry median ROC % is 5.32. Sopharma Trading AD's value of 13.88% is 161.1% above this industry median. Overall, Sopharma Trading AD has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sopharma Trading AD's ROC % compare to MCK and CAH?
Sopharma Trading AD's ROC % of 13.88% can be compared against companies in the Medical Distribution industry. The industry median ROC % is 5.32. Sopharma Trading AD's value of 13.88% is 161.1% 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 Medical Distribution company?
The median ROC % among Medical Distribution companies is 5.32, based on 116 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. Sopharma Trading AD's current ROC % of 13.88% is 161.1% 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 Sopharma Trading AD and its competitors. For the Medical Distribution industry, the median ROC % is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sopharma Trading AD's current ROC % is 13.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sopharma Trading AD stock overvalued right now?
Based on GuruFocus' analysis, Sopharma Trading AD (XBUL:SFT) is currently considered Significantly Undervalued. The stock's GF Value™ is €7.62, compared to a current price of €3.00 — trading 60.6% below its estimated fair value. The current ROC % is 13.88% and 161.1% above the Medical Distribution industry median of 5.32. Sopharma Trading AD's overall GF Score™ is 84/100 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 Sopharma Trading AD (XBUL:SFT), the current ROC % is 13.88% 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 Sopharma Trading AD (XBUL:SFT) Overvalued in 2026?
Based on GuruFocus' analysis, Sopharma Trading AD stock appears to be undervalued.
The current stock price of €3.00 is trading 60.6% below its estimated GF Value™ of €7.62.
GuruFocus considers Sopharma Trading AD to be Significantly Undervalued.
Key valuation signals for XBUL:SFT:
ROC %: 13.88%
GF Value™: €7.62 vs. price of €3.00 (60.6% below fair value)
Industry Position: 161.1% above the Medical Distribution median
No single metric tells the full story. See the XBUL:SFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sopharma Trading AD is a Bulgaria based company operating in the pharmaceutical sector. The company is engaged in the distribution of pharmaceutical items, including a portfolio of international brands, medicinal products, medical supplies, sanitary and hygienic materials, vitamins, nutritional supplements, cosmetics, medical equipment, and equipment. It also provides turnkey solutions for the construction of medical and hospital establishments. In addition, the group also caters logistics solutions for import, storage, and distribution of goods to end customers.
84GF Score
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