AMRRY (American Rare Earths) ROC %: -44.66% (As of Dec. 2025)


AMRRY American Rare Earths Ltd AMRRY
12 GF Score
Price $12.55
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What is American Rare Earths ROC %?

American Rare Earths AMRRY -2.49% 12 ROC % is -44.66% as of Dec. 2025. GuruFocus rates AMRRY with a GF Score™ of 12/100. The stock has 3 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. American Rare Earths's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -44.66%.

As of today (2026-06-25), American Rare Earths's WACC % is 12.05%. American Rare Earths's ROC % is -35.13% (calculated using TTM income statement data). American Rare Earths earns returns that do not match up to its cost of capital. It will destroy value as it grows.

American Rare Earths  (OTCPK:AMRRY) 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, American Rare Earths's WACC % is 12.05%. American Rare Earths's ROC % is -35.13% (calculated using TTM income statement data). American Rare Earths 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.

American Rare Earths ROC % Related Terms

American Rare Earths ROC % Historical Data

* Premium members only.

The historical data trend for American Rare Earths's ROC % 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.

American Rare Earths ROC % Chart

American Rare Earths Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -38.18 -48.60 -33.73 -42.64 -35.34

American Rare Earths Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -46.09 -32.31 -49.17 -24.51 -44.66
AMRRY
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American Rare Earths Ltd AMRRY
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
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American Rare Earths ROC % Calculation

American Rare Earths's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2025 is calculated as:

ROC % (A: Jun. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2024 ) + Invested Capital (A: Jun. 2025 ))/ count )
=-4.124 * ( 1 - 0% )/( (9.724 + 13.615)/ 2 )
=-4.124/11.6695
=-35.34 %

where

Invested Capital(A: Jun. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=22.59 - 0.394 - ( 12.963 - max(0, 0.525 - 12.997+12.963))
=9.724

Invested Capital(A: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=20.4 - 0.622 - ( 6.758 - max(0, 0.779 - 6.942+6.758))
=13.615

American Rare Earths's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=-6.426 * ( 1 - 0% )/( (13.615 + 15.161)/ 2 )
=-6.426/14.388
=-44.66 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=20.4 - 0.622 - ( 6.758 - max(0, 0.779 - 6.942+6.758))
=13.615

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=32.581 - 0.421 - ( 17.287 - max(0, 0.551 - 17.55+17.287))
=15.161

Note: The Operating Income data used here is two times the semi-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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -44.66% mean?
American Rare Earths (AMRRY) has a ROC % of -44.66% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on American Rare Earths and its competitors.
Is American Rare Earths' ROC % too high?
American Rare Earths' current ROC % is -44.66%. Overall, American Rare Earths has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does American Rare Earths' ROC % compare to competitors?
American Rare Earths' ROC % of -44.66% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. 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 American Rare Earths and its competitors. American Rare Earths's current ROC % is -44.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Rare Earths stock overvalued right now?
American Rare Earths (AMRRY) has a current ROC % of -44.66%. The current ROC % is -44.66%. American Rare Earths' overall GF Score™ is 12/100 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 American Rare Earths (AMRRY), the current ROC % is -44.66% 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.

American Rare Earths Business Description

Address Level 7, 89 York Street, Suite 706, Sydney, NSW, AUS, 2000
American Rare Earths Ltd is an Australian-based company engaged in the exploration and development of rare earth minerals in the United States, focusing on critical materials vital for renewable energy, electric vehicles, national security, and a carbon-reduced future. The company owns several projects, out of which the La Paz project in Arizona and the Halleck Creek project in Wyoming are notable rare earth deposits in the United States with low levels of radioactive elements. Revenue is derived from mineral exploration activities and associated project development. The company has two geographic segments, located in the United States and Australia.
12GF Score

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