ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ABL Diagnostics's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 7.96%.
As of today (2026-07-06), ABL Diagnostics's WACC % is 13.86%. ABL Diagnostics's ROC % is 3.15% (calculated using TTM income statement data).
ABL Diagnostics earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ABL Diagnostics (XPAR:ABLD) 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, ABL Diagnostics's WACC % is 13.86%. ABL Diagnostics's ROC % is 3.15% (calculated using TTM income statement data).
ABL Diagnostics 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.
ABL Diagnostics ROC % Related Terms
ABL Diagnostics ROC % Historical Data
* Premium members only.
The historical data trend for ABL Diagnostics'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 two times the semi-annual (Dec. 2025) 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.
ABL Diagnostics (XPAR:ABLD) has a ROC % of 7.96% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ABL Diagnostics and its competitors.
Is ABL Diagnostics' ROC % too high?
ABL Diagnostics' current ROC % is 7.96%. The Healthcare Providers & Services industry median ROC % is 3.09. ABL Diagnostics' value of 7.96% is 157.6% above this industry median. Overall, ABL Diagnostics has a GF Score™ of 51/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ABL Diagnostics' ROC % compare to VEEV and BTSG?
ABL Diagnostics' ROC % of 7.96% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.09. ABL Diagnostics' value of 7.96% is 157.6% 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 Healthcare Providers & Services company?
The median ROC % among Healthcare Providers & Services companies is 3.09, based on 667 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. ABL Diagnostics's current ROC % of 7.96% is 157.6% 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 ABL Diagnostics and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABL Diagnostics's current ROC % is 7.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABL Diagnostics stock overvalued right now?
Based on GuruFocus' analysis, ABL Diagnostics (XPAR:ABLD) is currently considered Significantly Undervalued. The stock's GF Value™ is €7.71, compared to a current price of €2.66 — trading 65.5% below its estimated fair value. The current ROC % is 7.96% and 157.6% above the Healthcare Providers & Services industry median of 3.09. ABL Diagnostics' overall GF Score™ is 51/100 with 4 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 ABL Diagnostics (XPAR:ABLD), the current ROC % is 7.96% as of Dec. 2025. 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 ABL Diagnostics (XPAR:ABLD) Overvalued in 2026?
Based on GuruFocus' analysis, ABL Diagnostics stock appears to be undervalued.
The current stock price of €2.66 is trading 65.5% below its estimated GF Value™ of €7.71.
GuruFocus considers ABL Diagnostics to be Significantly Undervalued.
Key valuation signals for XPAR:ABLD:
ROC %: 7.96%
GF Value™: €7.71 vs. price of €2.66 (65.5% below fair value)
Industry Position: 157.6% above the Healthcare Providers & Services median
No single metric tells the full story. See the XPAR:ABLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ABL Diagnostics is a diagnostic and medical software company. The group has focused on the development of software for collecting and processing medical databases, measuring the quality of care, diagnosing infectious diseases by genotyping, and providing decision support for doctors and nurses, virology and microbiology laboratories, and researchers dealing with patients suffering from chronic and complex diseases. It also develops, manufactures, and markets kits for clinical specimen collection.
51GF Score
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