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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Abu Dhabi National Co for Building Materials PJSC's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -1.76%.
Abu Dhabi National Co for Building Materials PJSC (ADX:BILDCO) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Abu Dhabi National Co for Building Materials PJSC's WACC % is 7.37%. Abu Dhabi National Co for Building Materials PJSC's ROC % is -1.76% (calculated using TTM income statement data).
Abu Dhabi National Co for Building Materials PJSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Abu Dhabi National Co for Building Materials PJSC ROC % Related Terms
Abu Dhabi National Co for Building Materials PJSC ROC % Historical 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.
Abu Dhabi National Co for Building Materials PJSC ROC % Chart
Abu Dhabi National Co for Building Materials PJSC Annual Data
Note:
The Operating Income data used here is one times the annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Abu Dhabi National Co for Building Materials PJSC (ADX:BILDCO) has a ROC % of -1.76% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Abu Dhabi National Co for Building Materials PJSC and its competitors.
Is Abu Dhabi National Co for Building Materials PJSC's ROC % too high?
Abu Dhabi National Co for Building Materials PJSC's current ROC % is -1.76%.
How does Abu Dhabi National Co for Building Materials PJSC's ROC % compare to CRH and VMC?
Abu Dhabi National Co for Building Materials PJSC's ROC % of -1.76% can be compared against companies in the Building Materials industry. The industry median ROC % is 3.34. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Building Materials company?
The median ROC % among Building Materials companies is 3.34, based on 398 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Abu Dhabi National Co for Building Materials PJSC and its competitors. For the Building Materials industry, the median ROC % is 3.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abu Dhabi National Co for Building Materials PJSC's current ROC % is -1.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abu Dhabi National Co for Building Materials PJSC stock overvalued right now?
Based on GuruFocus' analysis, Abu Dhabi National Co for Building Materials PJSC (ADX:BILDCO) is currently considered Significantly Overvalued. The stock's GF Value™ is د.إ0.51, compared to a current price of د.إ1.73 — trading 239.2% above its estimated fair value. The current ROC % is -1.76%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Abu Dhabi National Co for Building Materials PJSC (ADX:BILDCO), the current ROC % is -1.76% 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.
Abu Dhabi National Co for Building Materials PJSC is engaged in the manufacturing, trading, and supply of building and construction materials, including steel, cement, and concrete-related products, along with related services. The company mainly operates in the United Arab Emirates.
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