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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 %. Al Dhafra Insurance Co PSC's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.13%.
As of today (2026-07-15), Al Dhafra Insurance Co PSC's WACC % is 10.55%. Al Dhafra Insurance Co PSC's ROC % is 3.28% (calculated using TTM income statement data).
Al Dhafra Insurance Co PSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Al Dhafra Insurance Co PSC (ADX:DHAFRA) 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, Al Dhafra Insurance Co PSC's WACC % is 10.55%. Al Dhafra Insurance Co PSC's ROC % is 3.28% (calculated using TTM income statement data).
Al Dhafra Insurance Co PSC 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.
* 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.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) 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.
Al Dhafra Insurance Co PSC (ADX:DHAFRA) has a ROC % of 7.13% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Al Dhafra Insurance Co PSC and its competitors.
Is Al Dhafra Insurance Co PSC's ROC % too high?
Al Dhafra Insurance Co PSC's current ROC % is 7.13%. The Insurance industry median ROC % is 3.36. Al Dhafra Insurance Co PSC's value of 7.13% is 112.2% above this industry median. Overall, Al Dhafra Insurance Co PSC has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al Dhafra Insurance Co PSC's ROC % compare to BRK.A and AIG?
Al Dhafra Insurance Co PSC's ROC % of 7.13% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. Al Dhafra Insurance Co PSC's value of 7.13% is 112.2% 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 ROC % for an Insurance company?
The median ROC % among Insurance companies is 3.36, based on 371 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. Al Dhafra Insurance Co PSC's current ROC % of 7.13% is 112.2% 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 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 Al Dhafra Insurance Co PSC and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Dhafra Insurance Co PSC's current ROC % is 7.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Dhafra Insurance Co PSC stock overvalued right now?
Based on GuruFocus' analysis, Al Dhafra Insurance Co PSC (ADX:DHAFRA) is currently considered Significantly Overvalued. The stock's GF Value™ is د.إ5.63, compared to a current price of د.إ7.79 — trading 38.4% above its estimated fair value. The current ROC % is 7.13% and 112.2% above the Insurance industry median of 3.36. Al Dhafra Insurance Co PSC's overall GF Score™ is 46/100 with 10 warning signs to review. 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 Al Dhafra Insurance Co PSC (ADX:DHAFRA), the current ROC % is 7.13% 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 Al Dhafra Insurance Co PSC (ADX:DHAFRA) Overvalued in 2026?
Based on GuruFocus' analysis, Al Dhafra Insurance Co PSC stock appears to be overvalued.
The current stock price of د.إ7.79 is trading 38.4% above its estimated GF Value™ of د.إ5.63.
GuruFocus considers Al Dhafra Insurance Co PSC to be Significantly Overvalued.
Key valuation signals for ADX:DHAFRA:
ROC %: 7.13%
GF Value™: د.إ5.63 vs. price of د.إ7.79 (38.4% above fair value)
Industry Position: 112.2% above the Insurance median
No single metric tells the full story. See the ADX:DHAFRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Dhafra Insurance Co PSC is a direct Insurer in the U.A.E. market, underwriting both Life and Non-Life business. The classes of business underwritten by the company are Fire & General Accident; Contract Works and Contractor's Plant & Equipment; Electronic Equipment & Machinery Breakdown; Workmen's Compensation & Employer's Liability; Public Liability, Medical Malpractice and other Professional Indemnity risks; Marine Cargo, Marine Hull & Pleasure Craft; Oil & Gas on and offshore operations; Personal Accident, Medical & Life; Visit visa and House maid policies; and Motor. It operates in two segments namely Underwriting of general insurance business that incorporates all classes of general insurance such as fire, marine, motor, medical, general accident and miscellaneous, and Investments.
46GF Score
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