Cochlear (FRA:OC5) ROCE %: 19.74% (As of Dec. 2025)


FRA:OC5 Cochlear Ltd FRA:OC5
75 GF Score
Price €70.64
GF Value €185.38
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is Cochlear ROCE %?

Cochlear FRA:OC5 +3.02% 75 ROCE % is 19.74% as of Dec. 2025. GuruFocus rates FRA:OC5 with a GF Score™ of 75/100 and a GF Value™ of €185.38 (Significantly Undervalued). The stock has 2 warning signs investors should review.

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. Cochlear's annualized ROCE % for the quarter that ended in Dec. 2025 was 19.74%.

Cochlear  (FRA:OC5) 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.

Cochlear ROCE % Related Terms

Cochlear ROCE % Historical Data

* Premium members only.

The historical data trend for Cochlear's ROCE % 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.

Cochlear ROCE % Chart

Cochlear Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.23 20.74 19.95 24.02 23.36

Cochlear Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.28 22.32 26.14 21.82 19.74
FRA:OC5
75GF Score
Cochlear Ltd FRA:OC5
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cochlear ROCE % Calculation

Cochlear's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=298.878/( ( (1693.358 - 389.551) + (1594.58 - 339.97) )/ 2 )
=298.878/( (1303.807+1254.61)/ 2 )
=298.878/1279.2085
=23.36 %

Cochlear's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=248.994/( ( (1594.58 - 339.97) + (1585.262 - 317.143) )/ 2 )
=248.994/( ( 1254.61 + 1268.119 )/ 2 )
=248.994/1261.3645
=19.74 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 19.74% mean?
Cochlear (FRA:OC5) has a ROCE % of 19.74% as of Dec. 2025.
Is Cochlear's ROCE % too high?
Cochlear's current ROCE % is 19.74%. The Medical Devices & Instruments industry median ROCE % is 2.23. Cochlear's value of 19.74% is 785.2% above this industry median. Overall, Cochlear has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cochlear's ROCE % compare to ABT and SYK?
Cochlear's ROCE % of 19.74% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROCE % is 2.23. Cochlear's value of 19.74% is 785.2% 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 ROCE % for a Medical Devices & Instruments company?
The median ROCE % among Medical Devices & Instruments companies is 2.23, based on 814 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. Cochlear's current ROCE % of 19.74% is 785.2% 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 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 2.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cochlear's current ROCE % is 19.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cochlear stock overvalued right now?
Based on GuruFocus' analysis, Cochlear (FRA:OC5) is currently considered Significantly Undervalued. The stock's GF Value™ is €185.38, compared to a current price of €70.64 — trading 61.9% below its estimated fair value. The current ROCE % is 19.74% and 785.2% above the Medical Devices & Instruments industry median of 2.23. Cochlear's overall GF Score™ is 75/100 with 2 warning signs 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 Cochlear (FRA:OC5), the current ROCE % is 19.74% as of Dec. 2025. 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 Cochlear (FRA:OC5) Overvalued in 2026?

Based on GuruFocus' analysis, Cochlear stock appears to be undervalued. The current stock price of €70.64 is trading 61.9% below its estimated GF Value™ of €185.38. GuruFocus considers Cochlear to be Significantly Undervalued.

Key valuation signals for FRA:OC5:

  • ROCE %: 19.74%
  • GF Value™: €185.38 vs. price of €70.64 (61.9% below fair value)
  • GF Score™: 75/100 with 2 warning signs
  • Industry Position: 785.2% above the Medical Devices & Instruments median

No single metric tells the full story. See the FRA:OC5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Cochlear Business Description

Address 1 University Avenue, Macquarie University, Sydney, NSW, AUS, 2109
Cochlear is the leading cochlear implant device manufacturer, with around 60% global market share. Developed markets contribute 80% of group revenue, where cochlear implants are the standard of care for children with severe-to-profound hearing loss. The company also actively targets the growing cohort of seniors in developed markets. Tender-oriented emerging markets contribute the remaining 20% of group revenue. Main products include cochlear implants, bone-anchored hearing aids, and associated sound processors. In fiscal 2025, 49% of revenue came from the Americas, 34% from Europe, the Middle East, and Africa, and 18% from the Asia-Pacific segment.
75GF Score

Get the complete analysis for FRA:OC5

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€70.64
Price
€185.38
GF Value