ZFOXW (ZeroFox Holdings) ROC %: -11.42% (As of Jan. 2024)


What is ZeroFox Holdings ROC %?

ZeroFox Holdings ZFOXW +5.76% ROC % is -11.42% as of Jan. 2024. The stock has 4 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ZeroFox Holdings's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -11.42%.

As of today (2026-07-03), ZeroFox Holdings's WACC % is 8.96%. ZeroFox Holdings's ROC % is -9.80% (calculated using TTM income statement data). ZeroFox Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ZeroFox Holdings  (NAS:ZFOXW) 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, ZeroFox Holdings's WACC % is 8.96%. ZeroFox Holdings's ROC % is -9.80% (calculated using TTM income statement data). ZeroFox Holdings 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.

ZeroFox Holdings ROC % Related Terms

ZeroFox Holdings ROC % Historical Data

* Premium members only.

The historical data trend for ZeroFox Holdings'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.

ZeroFox Holdings ROC % Chart

ZeroFox Holdings Annual Data
Trend Jan20 Jan21 Jan22 Jan23 Jan24
ROC %
0.00 -21.15 -30.16 0.00 -10.95

ZeroFox Holdings Quarterly Data
Jan20 Jan21 Apr21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.57 -9.58 -6.68 -8.10 -11.42

ZeroFox Holdings ROC % Calculation

ZeroFox Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2024 is calculated as:

ROC % (A: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jan. 2023 ) + Invested Capital (A: Jan. 2024 ))/ count )
=-68.774 * ( 1 - 2.13% )/( (756.768 + 472.958)/ 2 )
=-67.3091138/614.863
=-10.95 %

where

Invested Capital(A: Jan. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=766.911 - 8.4 - ( 47.549 - max(0, 86.171 - 87.914+47.549))
=756.768

Invested Capital(A: Jan. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=464.837 - 8.134 - ( 33.149 - max(0, 101.88 - 85.625+33.149))
=472.958

ZeroFox Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=-66.116 * ( 1 - 0% )/( (685.304 + 472.958)/ 2 )
=-66.116/579.131
=-11.42 %

where

Invested Capital(Q: Oct. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=690.351 - 15.868 - ( 29.864 - max(0, 96.004 - 85.183+29.864))
=685.304

Invested Capital(Q: Jan. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=464.837 - 8.134 - ( 33.149 - max(0, 101.88 - 85.625+33.149))
=472.958

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -11.42% mean?
ZeroFox Holdings (ZFOXW) has a ROC % of -11.42% as of Jan. 2024. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ZeroFox Holdings and its competitors.
Is ZeroFox Holdings' ROC % too high?
ZeroFox Holdings' current ROC % is -11.42%.
How does ZeroFox Holdings' ROC % compare to ARQQ and HUBC?
ZeroFox Holdings' ROC % of -11.42% can be compared against companies in the Software industry. The industry median ROC % is 3.05. 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 Software company?
The median ROC % among Software companies is 3.05, based on 2,828 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. 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 ZeroFox Holdings and its competitors. For the Software industry, the median ROC % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZeroFox Holdings's current ROC % is -11.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZeroFox Holdings stock overvalued right now?
ZeroFox Holdings (ZFOXW) has a current ROC % of -11.42%. The current ROC % is -11.42%. 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 ZeroFox Holdings (ZFOXW), the current ROC % is -11.42% as of Jan. 2024. 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.

ZeroFox Holdings Business Description

Address 1834 South Charles Street, Baltimore, MD, USA, 21230
ZeroFox Holdings Inc is a cybersecurity company. It provides external threat intelligence and protection to disrupt threats to brands, people, assets and data across the public attack surface in one, comprehensive platform. With complete world-wide coverage across the surface, deep and dark web and an artificial intelligence-based analysis engine, the ZeroFox Platform identifies and remediates targeted phishing attacks, credential compromise, data exfiltration, brand hijacking, executive and location threats and more.