Solution Dynamics (NZSE:SDL) ROCE %: 5.14% (As of Dec. 2025)

What is Solution Dynamics ROCE %?

Solution Dynamics NZSE:SDL +5.17% 59 ROCE % is 5.14% as of Dec. 2025. GuruFocus rates NZSE:SDL with a GF Score™ of 59/100 and a GF Value™ of NZ$0.99 (Significantly Undervalued). The stock has 3 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. Solution Dynamics's annualized ROCE % for the quarter that ended in Dec. 2025 was 5.14%.

Solution Dynamics (NZSE:SDL) 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.

Solution Dynamics ROCE % Related Terms

Solution Dynamics ROCE % Historical Data

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The historical data trend for Solution Dynamics'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.

Solution Dynamics ROCE % Chart

Solution Dynamics Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Jun25

ROCE %

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29.57

50.43

53.81

42.82

29.67

Solution Dynamics 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															63.78	16.38	56.55	3.19	5.14

59GF Score

Solution Dynamics Ltd NZSE:SDL

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Solution Dynamics ROCE % Calculation

Solution Dynamics'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 )
	=	3.311	/	( ( (16.092 - 6.01)	+	(18.854 - 6.618) )	/ 2 )
	=	3.311	/	( (10.082	+	12.236)	/ 2 )
	=	3.311	/	11.159
	=	29.67 %

Solution Dynamics'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 )
	=	0.624	/	( ( (18.854 - 6.618)	+	(16.737 - 4.672) )	/ 2 )
	=	0.624	/	( ( 12.236	+	12.065 )	/ 2 )
	=	0.624	/	12.1505
	=	5.14 %

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

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 5.14% mean?

Solution Dynamics (NZSE:SDL) has a ROCE % of 5.14% as of Dec. 2025.

Is Solution Dynamics' ROCE % too high?

Solution Dynamics' current ROCE % is 5.14%. The Software industry median ROCE % is 5.27. Solution Dynamics' value of 5.14% is 2.5% below this industry median. Overall, Solution Dynamics has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Solution Dynamics' ROCE % compare to CRM and SHOP?

Solution Dynamics' ROCE % of 5.14% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. Solution Dynamics' value of 5.14% is 2.5% below 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. Solution Dynamics's current ROCE % of 5.14% is 2.5% below 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. Solution Dynamics's current ROCE % is 5.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Solution Dynamics stock overvalued right now?

Based on GuruFocus' analysis, Solution Dynamics (NZSE:SDL) is currently considered Significantly Undervalued. The stock's GF Value™ is NZ$0.99, compared to a current price of NZ$0.61 — trading 38.4% below its estimated fair value. The current ROCE % is 5.14% and 2.5% below the Software industry median of 5.27. Solution Dynamics' overall GF Score™ is 59/100 with 3 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 Solution Dynamics (NZSE:SDL), the current ROCE % is 5.14% 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 Solution Dynamics (NZSE:SDL) Overvalued in 2026?

Based on GuruFocus' analysis, Solution Dynamics stock appears to be undervalued. The current stock price of NZ$0.61 is trading 38.4% below its estimated GF Value™ of NZ$0.99. GuruFocus considers Solution Dynamics to be Significantly Undervalued.

Key valuation signals for NZSE:SDL:

ROCE %: 5.14%
GF Value™: NZ$0.99 vs. price of NZ$0.61 (38.4% below fair value)
GF Score™: 59/100 with 3 warning signs
Industry Position: 2.5% below the Software median

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

Solution Dynamics Business Description

Industry Technology Software

Comparable Companies NZSE:ENS NZSE:LOC NZSE:TWL NZSE:PYS XTER:SAP CRM SHOP UBER NOW ADBE CDNS INTU ADP SNOW DDOG MSTR ADSK TSX:CSU WDAY PAYX

Address 18 Canaveral Drive, PO Box 301248, Albany, Auckland, NZL, 0752

Website https://www.solutiondynamics.com

Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional materials. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.

59GF Score

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NZ$0.61

Price

NZ$0.99

GF Value

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