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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tactile Systems Technology's annualized ROCE % for the quarter that ended in Jun. 2026 was 12.40%.
Tactile Systems Technology (FRA:3L3) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
* 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.
(1) Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT 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.
Tactile Systems Technology (FRA:3L3) has a ROCE % of 12.40% as of Jun. 2026.
Is Tactile Systems Technology's ROCE % too high?
Tactile Systems Technology's current ROCE % is 12.40%. The Medical Devices & Instruments industry median ROCE % is 2.65. Tactile Systems Technology's value of 12.40% is 367.9% above this industry median. Overall, Tactile Systems Technology has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tactile Systems Technology's ROCE % compare to CBLL and CERS?
Tactile Systems Technology's ROCE % of 12.40% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROCE % is 2.65. Tactile Systems Technology's value of 12.40% is 367.9% 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 ROCE % for a Medical Devices & Instruments company?
The median ROCE % among Medical Devices & Instruments companies is 2.65, based on 813 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tactile Systems Technology's current ROCE % of 12.40% is 367.9% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Medical Devices & Instruments industry, the median ROCE % is 2.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tactile Systems Technology's current ROCE % is 12.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tactile Systems Technology stock overvalued right now?
Based on GuruFocus' analysis, Tactile Systems Technology (FRA:3L3) is currently considered Modestly Overvalued. The stock's GF Value™ is €16.69, compared to a current price of €20.38 — trading 22.1% above its estimated fair value. The current ROCE % is 12.40% and 367.9% above the Medical Devices & Instruments industry median of 2.65. Tactile Systems Technology's overall GF Score™ is 79/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Tactile Systems Technology (FRA:3L3), the current ROCE % is 12.40% as of Jun. 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 Tactile Systems Technology (FRA:3L3) Overvalued in 2026?
Based on GuruFocus' analysis, Tactile Systems Technology stock appears to be overvalued.
The current stock price of €20.38 is trading 22.1% above its estimated GF Value™ of €16.69.
GuruFocus considers Tactile Systems Technology to be Modestly Overvalued.
Key valuation signals for FRA:3L3:
ROCE %: 12.40%
GF Value™: €16.69 vs. price of €20.38 (22.1% above fair value)
Industry Position: 367.9% above the Medical Devices & Instruments median
No single metric tells the full story. See the FRA:3L3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tactile Systems Technology Inc is a medical technology company. The company is engaged in developing and providing medical devices for the treatment of chronic diseases. The firm's proprietary platform flexitouch system, provides a home-based solution for lymphedema patients. The entire system is another home solution for patients with chronic swelling and actitouch system for chronic venous insufficiency patients that may be worn throughout the day.
79GF Score
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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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