ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ESG Emirates Stallions Group PJSC's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.07%.
As of today (2026-06-24), ESG Emirates Stallions Group PJSC's WACC % is 10.12%. ESG Emirates Stallions Group PJSC's ROC % is 9.84% (calculated using TTM income statement data).
ESG Emirates Stallions Group PJSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ESG Emirates Stallions Group PJSC (ADX:ESG) 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, ESG Emirates Stallions Group PJSC's WACC % is 10.12%. ESG Emirates Stallions Group PJSC's ROC % is 9.84% (calculated using TTM income statement data).
ESG Emirates Stallions Group 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.
ESG Emirates Stallions Group PJSC ROC % Related Terms
ESG Emirates Stallions Group 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.
Note:
The Operating Income 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.
ESG Emirates Stallions Group PJSC (ADX:ESG) has a ROC % of 6.07% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ESG Emirates Stallions Group PJSC and its competitors.
Is ESG Emirates Stallions Group PJSC's ROC % too high?
ESG Emirates Stallions Group PJSC's current ROC % is 6.07%. The Conglomerates industry median ROC % is 2.82. ESG Emirates Stallions Group PJSC's value of 6.07% is 115.2% above this industry median. Overall, ESG Emirates Stallions Group PJSC has a GF Score™ of 94/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ESG Emirates Stallions Group PJSC's ROC % compare to HON and MMM?
ESG Emirates Stallions Group PJSC's ROC % of 6.07% can be compared against companies in the Conglomerates industry. The industry median ROC % is 2.82. ESG Emirates Stallions Group PJSC's value of 6.07% is 115.2% 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 a Conglomerates company?
The median ROC % among Conglomerates companies is 2.82, based on 552 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. ESG Emirates Stallions Group PJSC's current ROC % of 6.07% is 115.2% 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 ESG Emirates Stallions Group PJSC and its competitors. For the Conglomerates industry, the median ROC % is 2.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESG Emirates Stallions Group PJSC's current ROC % is 6.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESG Emirates Stallions Group PJSC stock overvalued right now?
Based on GuruFocus' analysis, ESG Emirates Stallions Group PJSC (ADX:ESG) is currently considered Significantly Undervalued. The stock's GF Value™ is د.إ20.69, compared to a current price of د.إ12.32 — trading 40.5% below its estimated fair value. The current ROC % is 6.07% and 115.2% above the Conglomerates industry median of 2.82. ESG Emirates Stallions Group PJSC's overall GF Score™ is 94/100 with 3 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 ESG Emirates Stallions Group PJSC (ADX:ESG), the current ROC % is 6.07% 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 ESG Emirates Stallions Group PJSC (ADX:ESG) Overvalued in 2026?
Based on GuruFocus' analysis, ESG Emirates Stallions Group PJSC stock appears to be undervalued.
The current stock price of د.إ12.32 is trading 40.5% below its estimated GF Value™ of د.إ20.69.
GuruFocus considers ESG Emirates Stallions Group PJSC to be Significantly Undervalued.
Key valuation signals for ADX:ESG:
ROC %: 6.07%
GF Value™: د.إ20.69 vs. price of د.إ12.32 (40.5% below fair value)
Industry Position: 115.2% above the Conglomerates median
No single metric tells the full story. See the ADX:ESG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESG Emirates Stallions Group PJSC Business Description
ESG Emirates Stallions Group PJSC is a diversified group operating across and delivering solutions in manpower, real estate, retail, interior design, and the manufacturing industry. The group's operating business segments are: Contracting and consultancy, Landscaping, agriculture and maintenance, Business process/manpower, Furniture manufacturing, Retail and interior fit out, and Others. Maximum revenue is generated from the Furniture manufacturing, Retail and interior fit out segment, which includes retail trading of household, office furniture, and interior decoration material, wooden door manufacturing, house and furniture manufacturing. Geographically, the group generates maximum revenue from its business in the United Arab Emirates, and the rest from markets located outside the UAE.
94GF Score
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