ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Siemens Energy AG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.39%.
As of today (2026-06-26), Siemens Energy AG's WACC % is 16.17%. Siemens Energy AG's ROC % is 3.75% (calculated using TTM income statement data).
Siemens Energy AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Siemens Energy AG (XTER:ENR) 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, Siemens Energy AG's WACC % is 16.17%. Siemens Energy AG's ROC % is 3.75% (calculated using TTM income statement data).
Siemens Energy 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.
Siemens Energy AG ROC % Related Terms
Siemens Energy AG ROC % Historical Data
* Premium members only.
The historical data trend for Siemens Energy AG'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.
Siemens Energy AG (XTER:ENR) has a ROC % of 5.39% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Siemens Energy AG and its competitors.
Is Siemens Energy AG's ROC % too high?
Siemens Energy AG's current ROC % is 5.39%. The Industrial Products industry median ROC % is 5.23. Siemens Energy AG's value of 5.39% is 3.2% above this industry median. Overall, Siemens Energy AG has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Siemens Energy AG's ROC % compare to GEV and ETN?
Siemens Energy AG's ROC % of 5.39% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. Siemens Energy AG's value of 5.39% is 3.2% 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 Industrial Products company?
The median ROC % among Industrial Products companies is 5.23, based on 3,040 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. Siemens Energy AG's current ROC % of 5.39% is 3.2% 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 Siemens Energy AG and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Siemens Energy AG's current ROC % is 5.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Siemens Energy AG stock overvalued right now?
Based on GuruFocus' analysis, Siemens Energy AG (XTER:ENR) is currently considered Significantly Overvalued. The stock's GF Value™ is €57.40, compared to a current price of €163.46 — trading 184.8% above its estimated fair value. The current ROC % is 5.39% and 3.2% above the Industrial Products industry median of 5.23. Siemens Energy AG's overall GF Score™ is 64/100 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 Siemens Energy AG (XTER:ENR), the current ROC % is 5.39% 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 Siemens Energy AG (XTER:ENR) Overvalued in 2026?
Based on GuruFocus' analysis, Siemens Energy AG stock appears to be overvalued.
The current stock price of €163.46 is trading 184.8% above its estimated GF Value™ of €57.40.
GuruFocus considers Siemens Energy AG to be Significantly Overvalued.
Key valuation signals for XTER:ENR:
ROC %: 5.39%
GF Value™: €57.40 vs. price of €163.46 (184.8% above fair value)
Industry Position: 3.2% above the Industrial Products median
No single metric tells the full story. See the XTER:ENR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Siemens Energy manufactures a wide range of equipment used to generate and transmit energy. The group is a product of the spinout from Siemens in 2020, consisting of the power and gas segment and Siemens Gamesa, although its operations go back over 150 years. Approximately one-sixth of global electricity generation is based on its technology.
64GF Score
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