Rackspace Technology (HAM:RT3) ROCE %: 6.90% (As of Mar. 2026)

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HAM:RT3 Rackspace Technology Inc HAM:RT3
38 GF Score
Price €3.51
GF Value €1.05
! 5 Warning Signs
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What is Rackspace Technology ROCE %?

Rackspace Technology HAM:RT3 +10.03% 38 ROCE % is 6.90% as of Mar. 2026. GuruFocus rates HAM:RT3 with a GF Score™ of 38/100 and a GF Value™ of €1.05. The stock has 5 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. Rackspace Technology's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.90%.

Rackspace Technology  (HAM:RT3) 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.

Rackspace Technology ROCE % Related Terms

Rackspace Technology ROCE % Historical Data

* Premium members only.

The historical data trend for Rackspace Technology'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.

Rackspace Technology ROCE % Chart

Rackspace Technology Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only -0.82 -14.14 -15.76 -28.74 -5.19

Rackspace Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 -7.65 -5.02 -7.04 -1.71 6.90
HAM:RT3
38GF Score
Rackspace Technology Inc HAM:RT3
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Rackspace Technology ROCE % Calculation

Rackspace Technology's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=-101.711/( ( (2916.666 - 732.103) + (2391.029 - 654.762) )/ 2 )
=-101.711/( (2184.563+1736.267)/ 2 )
=-101.711/1960.415
=-5.19 %

Rackspace Technology's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=119.024/( ( (2391.029 - 654.762) + (2392.071 - 679.544) )/ 2 )
=119.024/( ( 1736.267 + 1712.527 )/ 2 )
=119.024/1724.397
=6.90 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 6.90% mean?
Rackspace Technology (HAM:RT3) has a ROCE % of 6.90% as of Mar. 2026.
Is Rackspace Technology's ROCE % too high?
Rackspace Technology's current ROCE % is 6.90%. The Software industry median ROCE % is 5.35. Rackspace Technology's value of 6.90% is 29.1% above this industry median. Overall, Rackspace Technology has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's ROCE % compare to AEVA and TUYA?
Rackspace Technology's ROCE % of 6.90% can be compared against companies in the Software industry. The industry median ROCE % is 5.35. Rackspace Technology's value of 6.90% is 29.1% 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 Software company?
The median ROCE % among Software companies is 5.35, based on 2,726 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. Rackspace Technology's current ROCE % of 6.90% is 29.1% 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 Software industry, the median ROCE % is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current ROCE % is 6.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rackspace Technology stock overvalued right now?
Rackspace Technology (HAM:RT3) has a current ROCE % of 6.90%. The stock's GF Value™ is €1.05, compared to a current price of €3.51 — trading 234.3% above its estimated fair value. The current ROCE % is 6.90% and 29.1% above the Software industry median of 5.35. Rackspace Technology's overall GF Score™ is 38/100 with 5 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 Rackspace Technology (HAM:RT3), the current ROCE % is 6.90% 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 Rackspace Technology (HAM:RT3) Overvalued in 2026?

Based on GuruFocus' analysis, Rackspace Technology stock appears to be overvalued. The current stock price of €3.51 is trading 234.3% above its estimated GF Value™ of €1.05.

Key valuation signals for HAM:RT3:

  • ROCE %: 6.90%
  • GF Value™: €1.05 vs. price of €3.51 (234.3% above fair value)
  • GF Score™: 38/100 with 5 warning signs
  • Industry Position: 29.1% above the Software median

No single metric tells the full story. See the HAM:RT3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Rackspace Technology Business Description

Other Exchanges RXT:USA
Address 19122 US Highway 281 N, Suite 128, San Antonio, TX, USA, 78258-7667
Rackspace Technology Inc is an end-to-end, hybrid, multi-cloud technology services company. It designs, builds, and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services, Data, Colocation, Cloud, Managed Hosting, Professional Services, and Security and Compliance. It has two reportable segments: Private Cloud and Public Cloud. Maximum revenue is generated from the Public Cloud segment, which offers cloud solutions through managed services, elastic engineering, and professional services offerings for customer environments hosted on the AWS, Microsoft Azure, and Google Cloud public cloud platforms. Geographically, the company derives its key revenue from the U.S.
38GF Score

Get the complete analysis for HAM:RT3

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

€3.51
Price
€1.05
GF Value