ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SGL Carbon SE's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.81%.
As of today (2026-06-24), SGL Carbon SE's WACC % is 16.67%. SGL Carbon SE's ROC % is 6.98% (calculated using TTM income statement data).
SGL Carbon SE earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SGL Carbon SE (XTER:SGL) 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, SGL Carbon SE's WACC % is 16.67%. SGL Carbon SE's ROC % is 6.98% (calculated using TTM income statement data).
SGL Carbon SE 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.
SGL Carbon SE ROC % Related Terms
SGL Carbon SE ROC % Historical Data
* Premium members only.
The historical data trend for SGL Carbon SE'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.
SGL Carbon SE (XTER:SGL) has a ROC % of 5.81% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SGL Carbon SE and its competitors.
Is SGL Carbon SE's ROC % too high?
SGL Carbon SE's current ROC % is 5.81%. The Chemicals industry median ROC % is 4.46. SGL Carbon SE's value of 5.81% is 30.3% above this industry median. Overall, SGL Carbon SE has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SGL Carbon SE's ROC % compare to DOW?
SGL Carbon SE's ROC % of 5.81% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. SGL Carbon SE's value of 5.81% is 30.3% 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 Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,585 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. SGL Carbon SE's current ROC % of 5.81% is 30.3% 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 SGL Carbon SE and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SGL Carbon SE's current ROC % is 5.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SGL Carbon SE stock overvalued right now?
Based on GuruFocus' analysis, SGL Carbon SE (XTER:SGL) is currently considered Modestly Overvalued. The stock's GF Value™ is €4.01, compared to a current price of €4.78 — trading 19.1% above its estimated fair value. The current ROC % is 5.81% and 30.3% above the Chemicals industry median of 4.46. SGL Carbon SE's overall GF Score™ is 65/100 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 SGL Carbon SE (XTER:SGL), the current ROC % is 5.81% 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 SGL Carbon SE (XTER:SGL) Overvalued in 2026?
Based on GuruFocus' analysis, SGL Carbon SE stock appears to be overvalued.
The current stock price of €4.78 is trading 19.1% above its estimated GF Value™ of €4.01.
GuruFocus considers SGL Carbon SE to be Modestly Overvalued.
Key valuation signals for XTER:SGL:
ROC %: 5.81%
GF Value™: €4.01 vs. price of €4.78 (19.1% above fair value)
Industry Position: 30.3% above the Chemicals median
No single metric tells the full story. See the XTER:SGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SGL Carbon SE produces carbon and graphite-based products, operating through segments like Composite Solutions, Graphite Solutions, Process Technology, Carbon Fibers, and Corporate. Maximum revenue comes from the Graphite Solutions segment, offering graphite products for industrial applications and industries like semiconductors, energy, chemicals, and automotive. Process Technology specializes in constructing and repairing plants and equipment for the chemicals sector. The Carbon Fibers segment provides carbon fibers and related semi-finished products for wind energy and automotive uses. Composite Solutions delivers customized composite material components, mainly for the automotive sector. Geographically, the company generates maximum revenue from Germany, followed by other markets.
65GF Score
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