ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Montana Aerospace AG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.80%.
As of today (2026-06-25), Montana Aerospace AG's WACC % is 6.30%. Montana Aerospace AG's ROC % is 3.85% (calculated using TTM income statement data).
Montana Aerospace AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Montana Aerospace AG (XSWX:AERO) 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, Montana Aerospace AG's WACC % is 6.30%. Montana Aerospace AG's ROC % is 3.85% (calculated using TTM income statement data).
Montana Aerospace AG 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.
* 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.
Montana Aerospace AG (XSWX:AERO) has a ROC % of 4.80% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Montana Aerospace AG and its competitors.
Is Montana Aerospace AG's ROC % too high?
Montana Aerospace AG's current ROC % is 4.80%. The Aerospace & Defense industry median ROC % is 4.45. Montana Aerospace AG's value of 4.80% is 7.9% above this industry median. Overall, Montana Aerospace AG has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Montana Aerospace AG's ROC % compare to GE and RTX?
Montana Aerospace AG's ROC % of 4.80% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.45. Montana Aerospace AG's value of 4.80% is 7.9% 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 an Aerospace & Defense company?
The median ROC % among Aerospace & Defense companies is 4.45, based on 351 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. Montana Aerospace AG's current ROC % of 4.80% is 7.9% 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 Montana Aerospace AG and its competitors. For the Aerospace & Defense industry, the median ROC % is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Montana Aerospace AG's current ROC % is 4.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Montana Aerospace AG stock overvalued right now?
Based on GuruFocus' analysis, Montana Aerospace AG (XSWX:AERO) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF16.41, compared to a current price of CHF20.70 — trading 26.1% above its estimated fair value. The current ROC % is 4.80% and 7.9% above the Aerospace & Defense industry median of 4.45. Montana Aerospace AG's overall GF Score™ is 57/100 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 Montana Aerospace AG (XSWX:AERO), the current ROC % is 4.80% 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 Montana Aerospace AG (XSWX:AERO) Overvalued in 2026?
Based on GuruFocus' analysis, Montana Aerospace AG stock appears to be overvalued.
The current stock price of CHF20.70 is trading 26.1% above its estimated GF Value™ of CHF16.41.
GuruFocus considers Montana Aerospace AG to be Modestly Overvalued.
Key valuation signals for XSWX:AERO:
ROC %: 4.80%
GF Value™: CHF16.41 vs. price of CHF20.70 (26.1% above fair value)
Industry Position: 7.9% above the Aerospace & Defense median
No single metric tells the full story. See the XSWX:AERO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Montana Aerospace AG is a vertically integrated manufacturer and supplier of complex components, structures, and customized assemblies, as well as semi-finished products for specialized applications in a wide array of end markets. The company's reportable segments are Aerostructures and Alpine Metal Tech. Maximum revenue is generated from the Aerostructures segment, which develops and manufactures aircraft parts. Its product portfolio ranges from structural components for fuselage, wings, and landing gear to critical engine components subject to high thermal and mechanical loads, and functional components for the cabin interior. Geographically, the company generates maximum revenue from the USA, followed by Brazil, Germany, China, the United Kingdom, Belgium, and other countries.
57GF Score
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