ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Energy Action's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 12.14%.
As of today (2026-06-26), Energy Action's WACC % is 5.26%. Energy Action's ROC % is 21.83% (calculated using TTM income statement data).
Energy Action generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Energy Action (ASX:EAX) 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, Energy Action's WACC % is 5.26%. Energy Action's ROC % is 21.83% (calculated using TTM income statement data).
Energy Action generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Energy Action ROC % Related Terms
Energy Action ROC % Historical Data
* Premium members only.
The historical data trend for Energy Action'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 (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.
Energy Action (ASX:EAX) has a ROC % of 12.14% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Energy Action and its competitors.
Is Energy Action's ROC % too high?
Energy Action's current ROC % is 12.14%. The Business Services industry median ROC % is 5.93. Energy Action's value of 12.14% is 104.7% above this industry median. Overall, Energy Action has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Energy Action's ROC % compare to CTAS and CPRT?
Energy Action's ROC % of 12.14% can be compared against companies in the Business Services industry. The industry median ROC % is 5.93. Energy Action's value of 12.14% is 104.7% 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 Business Services company?
The median ROC % among Business Services companies is 5.93, based on 1,075 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. Energy Action's current ROC % of 12.14% is 104.7% 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 Energy Action and its competitors. For the Business Services industry, the median ROC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Action's current ROC % is 12.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Action stock overvalued right now?
Based on GuruFocus' analysis, Energy Action (ASX:EAX) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.24, compared to a current price of A$0.42 — trading 72.9% above its estimated fair value. The current ROC % is 12.14% and 104.7% above the Business Services industry median of 5.93. Energy Action's overall GF Score™ is 45/100 with 2 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 Energy Action (ASX:EAX), the current ROC % is 12.14% 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.
Is Energy Action (ASX:EAX) Overvalued in 2026?
Based on GuruFocus' analysis, Energy Action stock appears to be overvalued.
The current stock price of A$0.42 is trading 72.9% above its estimated GF Value™ of A$0.24.
GuruFocus considers Energy Action to be Significantly Overvalued.
Key valuation signals for ASX:EAX:
ROC %: 12.14%
GF Value™: A$0.24 vs. price of A$0.42 (72.9% above fair value)
Industry Position: 104.7% above the Business Services median
No single metric tells the full story. See the ASX:EAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Energy Action Ltd is engaged in providing integrated energy management services to a diverse base of commercial, industrial, and small and medium-sized business customers. It offers electricity and gas procurement services in Australia. The company's core services include Procurement, Energy Managed Services, Retail Services, and Other. The company has one operating segment, which provides electricity and gas procurement services, energy management, and retail billing services in Australia. The company provides various services such as Energy Buying, Energy Management, and Embedded Networks. It derives a majority of its revenues from Energy procurement.
45GF Score
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