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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. MGI Digital Graphic Technology's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 6.78%.
As of today (2026-07-14), MGI Digital Graphic Technology's WACC % is 5.97%. MGI Digital Graphic Technology's ROC % is 4.04% (calculated using TTM income statement data).
MGI Digital Graphic Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.
MGI Digital Graphic Technology (XPAR:ALMDG) 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, MGI Digital Graphic Technology's WACC % is 5.97%. MGI Digital Graphic Technology's ROC % is 4.04% (calculated using TTM income statement data).
MGI Digital Graphic Technology 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.
MGI Digital Graphic Technology ROC % Related Terms
MGI Digital Graphic Technology ROC % Historical Data
* 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.
MGI Digital Graphic Technology (XPAR:ALMDG) has a ROC % of 6.78% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on MGI Digital Graphic Technology and its competitors.
Is MGI Digital Graphic Technology's ROC % too high?
MGI Digital Graphic Technology's current ROC % is 6.78%. The Hardware industry median ROC % is 4.12. MGI Digital Graphic Technology's value of 6.78% is 64.6% above this industry median. Overall, MGI Digital Graphic Technology has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MGI Digital Graphic Technology's ROC % compare to SNDK and DELL?
MGI Digital Graphic Technology's ROC % of 6.78% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. MGI Digital Graphic Technology's value of 6.78% is 64.6% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,451 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. MGI Digital Graphic Technology's current ROC % of 6.78% is 64.6% 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 MGI Digital Graphic Technology and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGI Digital Graphic Technology's current ROC % is 6.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MGI Digital Graphic Technology stock overvalued right now?
Based on GuruFocus' analysis, MGI Digital Graphic Technology (XPAR:ALMDG) is currently considered Significantly Undervalued. The stock's GF Value™ is €21.24, compared to a current price of €10.84 — trading 49% below its estimated fair value. The current ROC % is 6.78% and 64.6% above the Hardware industry median of 4.12. MGI Digital Graphic Technology's overall GF Score™ is 79/100 with 5 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 MGI Digital Graphic Technology (XPAR:ALMDG), the current ROC % is 6.78% 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 MGI Digital Graphic Technology (XPAR:ALMDG) Overvalued in 2026?
Based on GuruFocus' analysis, MGI Digital Graphic Technology stock appears to be undervalued.
The current stock price of €10.84 is trading 49% below its estimated GF Value™ of €21.24.
GuruFocus considers MGI Digital Graphic Technology to be Significantly Undervalued.
Key valuation signals for XPAR:ALMDG:
ROC %: 6.78%
GF Value™: €21.24 vs. price of €10.84 (49% below fair value)
Industry Position: 64.6% above the Hardware median
No single metric tells the full story. See the XPAR:ALMDG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MGI Digital Graphic Technology Business Description
MGI Digital Graphic Technology SA is a France-based company engaged in designing, manufacturing, and selling digital printing and finishing equipment for the graphics industry. The company offers digital printing and finishing equipment in the areas of inkjet technology, digital printing, spot UV coating, embossed hot foiling, adhesive labels, digital finishing, plastic card production, envelope solutions, and turnkey paper solutions.
79GF Score
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