ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Shepherd Neame's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was 2.44%.
As of today (2026-06-29), Shepherd Neame's WACC % is 5.08%. Shepherd Neame's ROC % is 2.67% (calculated using TTM income statement data).
Shepherd Neame earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Shepherd Neame (AQSE:SHEP) 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, Shepherd Neame's WACC % is 5.08%. Shepherd Neame's ROC % is 2.67% (calculated using TTM income statement data).
Shepherd Neame 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.
Shepherd Neame ROC % Related Terms
Shepherd Neame ROC % Historical Data
* Premium members only.
The historical data trend for Shepherd Neame'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.
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
Shepherd Neame (AQSE:SHEP) has a ROC % of 2.44% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shepherd Neame and its competitors.
Is Shepherd Neame's ROC % too high?
Shepherd Neame's current ROC % is 2.44%. The Restaurants industry median ROC % is 4.24. Shepherd Neame's value of 2.44% is 42.5% below this industry median. Overall, Shepherd Neame has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shepherd Neame's ROC % compare to MCD and SBUX?
Shepherd Neame's ROC % of 2.44% can be compared against companies in the Restaurants industry. The industry median ROC % is 4.24. Shepherd Neame's value of 2.44% is 42.5% 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 Restaurants company?
The median ROC % among Restaurants companies is 4.24, based on 358 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. Shepherd Neame's current ROC % of 2.44% is 42.5% 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 Shepherd Neame and its competitors. For the Restaurants industry, the median ROC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shepherd Neame's current ROC % is 2.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shepherd Neame stock overvalued right now?
Based on GuruFocus' analysis, Shepherd Neame (AQSE:SHEP) is currently considered Modestly Undervalued. The stock's GF Value™ is £6.75, compared to a current price of £5.05 — trading 25.2% below its estimated fair value. The current ROC % is 2.44% and 42.5% below the Restaurants industry median of 4.24. Shepherd Neame's overall GF Score™ is 72/100 with 4 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 Shepherd Neame (AQSE:SHEP), the current ROC % is 2.44% as of Jun. 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.
Is Shepherd Neame (AQSE:SHEP) Overvalued in 2026?
Based on GuruFocus' analysis, Shepherd Neame stock appears to be undervalued.
The current stock price of £5.05 is trading 25.2% below its estimated GF Value™ of £6.75.
GuruFocus considers Shepherd Neame to be Modestly Undervalued.
Key valuation signals for AQSE:SHEP:
ROC %: 2.44%
GF Value™: £6.75 vs. price of £5.05 (25.2% below fair value)
Industry Position: 42.5% below the Restaurants median
No single metric tells the full story. See the AQSE:SHEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shepherd Neame Ltd brews and packages beer, wholesales and retails beer, cider, wines, spirits, and minerals, owns property and public houses, and provides hotel management services. Its segments are Brewing and Brands, Retail Pubs and Hotels, and Tenanted Pubs, with the majority of revenue coming from Retail Pubs and Hotels. The company brews and distributes its own beers, including Spitfire, Bishops Finger, Whitstable Bay, Bear Island, Creekside IPA, First Drop Session IPA, and Iron Wharf Stout. It also brews licensed international lagers like Singha. The company operates in the UK and internationally, with the majority of revenue coming from the UK.
72GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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