PGS Software (LTS:0RK2) ROCE %: 76.92% (As of Sep. 2021)


What is PGS Software ROCE %?

PGS Software LTS:0RK2 4 ROCE % is 76.92% as of Sep. 2021. GuruFocus rates LTS:0RK2 with a GF Score™ of 4/100. The stock has 6 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. PGS Software's annualized ROCE % for the quarter that ended in Sep. 2021 was 76.92%.

PGS Software  (LTS:0RK2) 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.

PGS Software ROCE % Related Terms

PGS Software ROCE % Historical Data

* Premium members only.

The historical data trend for PGS Software'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.

PGS Software ROCE % Chart

PGS Software Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 116.57 114.08 98.83 69.37 39.92

PGS Software Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 42.82 45.24 68.19 61.97 76.92

PGS Software ROCE % Calculation

PGS Software's annualized ROCE % for the fiscal year that ended in Dec. 2020 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2020 )  (A: Dec. 2019 )(A: Dec. 2020 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2020 )  (A: Dec. 2019 )(A: Dec. 2020 )
=22.751/( ( (67.616 - 12.279) + (65.766 - 7.116) )/ 2 )
=22.751/( (55.337+58.65)/ 2 )
=22.751/56.9935
=39.92 %

PGS Software's ROCE % of for the quarter that ended in Sep. 2021 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2021 )  (Q: Jun. 2021 )(Q: Sep. 2021 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2021 )  (Q: Jun. 2021 )(Q: Sep. 2021 )
=53.568/( ( (105.919 - 41.545) + (99.833 - 24.933) )/ 2 )
=53.568/( ( 64.374 + 74.9 )/ 2 )
=53.568/69.637
=76.92 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2021) 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 76.92% mean?
PGS Software (LTS:0RK2) has a ROCE % of 76.92% as of Sep. 2021.
Is PGS Software's ROCE % too high?
PGS Software's current ROCE % is 76.92%. The Software industry median ROCE % is 5.27. PGS Software's value of 76.92% is 1359.6% above this industry median. Overall, PGS Software has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PGS Software's ROCE % compare to CRM and INTU?
PGS Software's ROCE % of 76.92% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. PGS Software's value of 76.92% is 1359.6% 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 5.27, based on 2,713 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. PGS Software's current ROCE % of 76.92% is 1359.6% 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 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PGS Software's current ROCE % is 76.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PGS Software stock overvalued right now?
PGS Software (LTS:0RK2) has a current ROCE % of 76.92%. The current ROCE % is 76.92% and 1359.6% above the Software industry median of 5.27. PGS Software's overall GF Score™ is 4/100 with 6 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 PGS Software (LTS:0RK2), the current ROCE % is 76.92% as of Sep. 2021. 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.

PGS Software Business Description

Address ul. Klecinska 123, Wroclaw, POL, 54-413
PGS Software SA provides software development and IT outsourcing services in Poland. It offers nearshore software outsourcing; mobile and web; application development; continuous delivery, quality analysis, and automation; and cloud services.