ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ready Mix Concrete and Construction Supplies's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.27%.
Ready Mix Concrete and Construction Supplies (AMM:RMCC) 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, Ready Mix Concrete and Construction Supplies's WACC % is 9.61%. Ready Mix Concrete and Construction Supplies's ROC % is 4.92% (calculated using TTM income statement data).
Ready Mix Concrete and Construction Supplies 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.
Ready Mix Concrete and Construction Supplies ROC % Related Terms
Ready Mix Concrete and Construction Supplies 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.
Ready Mix Concrete and Construction Supplies ROC % Chart
Ready Mix Concrete and Construction Supplies Annual Data
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.
Ready Mix Concrete and Construction Supplies (AMM:RMCC) has a ROC % of 2.27% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ready Mix Concrete and Construction Supplies and its competitors.
Is Ready Mix Concrete and Construction Supplies' ROC % too high?
Ready Mix Concrete and Construction Supplies' current ROC % is 2.27%. The Building Materials industry median ROC % is 3.57. Ready Mix Concrete and Construction Supplies' value of 2.27% is 36.3% below this industry median. Overall, Ready Mix Concrete and Construction Supplies has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ready Mix Concrete and Construction Supplies' ROC % compare to CRH and VMC?
Ready Mix Concrete and Construction Supplies' ROC % of 2.27% can be compared against companies in the Building Materials industry. The industry median ROC % is 3.57. Ready Mix Concrete and Construction Supplies' value of 2.27% is 36.3% 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 ROC % for a Building Materials company?
The median ROC % among Building Materials companies is 3.57, based on 400 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. Ready Mix Concrete and Construction Supplies's current ROC % of 2.27% is 36.3% 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 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 Ready Mix Concrete and Construction Supplies and its competitors. For the Building Materials industry, the median ROC % is 3.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ready Mix Concrete and Construction Supplies's current ROC % is 2.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ready Mix Concrete and Construction Supplies stock overvalued right now?
Based on GuruFocus' analysis, Ready Mix Concrete and Construction Supplies (AMM:RMCC) is currently considered Significantly Overvalued. The stock's GF Value™ is JOD0.99, compared to a current price of JOD1.30 — trading 31.3% above its estimated fair value. The current ROC % is 2.27% and 36.3% below the Building Materials industry median of 3.57. Ready Mix Concrete and Construction Supplies' overall GF Score™ is 66/100 with 7 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 Ready Mix Concrete and Construction Supplies (AMM:RMCC), the current ROC % is 2.27% 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 Ready Mix Concrete and Construction Supplies (AMM:RMCC) Overvalued in 2026?
Based on GuruFocus' analysis, Ready Mix Concrete and Construction Supplies stock appears to be overvalued.
The current stock price of JOD1.30 is trading 31.3% above its estimated GF Value™ of JOD0.99.
GuruFocus considers Ready Mix Concrete and Construction Supplies to be Significantly Overvalued.
Key valuation signals for AMM:RMCC:
ROC %: 2.27%
GF Value™: JOD0.99 vs. price of JOD1.30 (31.3% above fair value)
Industry Position: 36.3% below the Building Materials median
No single metric tells the full story. See the AMM:RMCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ready Mix Concrete and Construction Supplies Business Description
Ready Mix Concrete and Construction Supplies are engaged in supplying ready-mix concrete to the construction industry. The company's projects profile includes Commercial, Educational, Governmental, Industrial, Infrastructure, Medical, Private, Public, and Residential. It is dedicated to evolve the concrete industry by developing its products in both range and quality. The products of the company are: Stamped concrete, Exposed concrete, Polished concrete, Troweled concrete, Foam concrete, Screed, and Steel-fiber reinforced concrete.
66GF Score
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