ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ebos Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 6.32%.
As of today (2026-06-26), Ebos Group's WACC % is 6.32%. Ebos Group's ROC % is 6.37% (calculated using TTM income statement data).
Ebos Group 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.
Ebos Group (ASX:EBO) 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, Ebos Group's WACC % is 6.32%. Ebos Group's ROC % is 6.37% (calculated using TTM income statement data).
Ebos Group 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.
Ebos Group ROC % Related Terms
Ebos Group ROC % Historical Data
* Premium members only.
The historical data trend for Ebos Group'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.
Ebos Group (ASX:EBO) has a ROC % of 6.32% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ebos Group and its competitors.
Is Ebos Group's ROC % too high?
Ebos Group's current ROC % is 6.32%. The Medical Distribution industry median ROC % is 5.43. Ebos Group's value of 6.32% is 16.5% above this industry median. Overall, Ebos Group has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ebos Group's ROC % compare to MCK and COR?
Ebos Group's ROC % of 6.32% can be compared against companies in the Medical Distribution industry. The industry median ROC % is 5.43. Ebos Group's value of 6.32% is 16.5% 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 Medical Distribution company?
The median ROC % among Medical Distribution companies is 5.43, based on 118 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. Ebos Group's current ROC % of 6.32% is 16.5% 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 Ebos Group and its competitors. For the Medical Distribution industry, the median ROC % is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ebos Group's current ROC % is 6.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ebos Group stock overvalued right now?
Based on GuruFocus' analysis, Ebos Group (ASX:EBO) is currently considered Significantly Undervalued. The stock's GF Value™ is A$31.49, compared to a current price of A$16.76 — trading 46.8% below its estimated fair value. The current ROC % is 6.32% and 16.5% above the Medical Distribution industry median of 5.43. Ebos Group's overall GF Score™ is 77/100 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 Ebos Group (ASX:EBO), the current ROC % is 6.32% 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 Ebos Group (ASX:EBO) Overvalued in 2026?
Based on GuruFocus' analysis, Ebos Group stock appears to be undervalued.
The current stock price of A$16.76 is trading 46.8% below its estimated GF Value™ of A$31.49.
GuruFocus considers Ebos Group to be Significantly Undervalued.
Key valuation signals for ASX:EBO:
ROC %: 6.32%
GF Value™: A$31.49 vs. price of A$16.76 (46.8% below fair value)
Industry Position: 16.5% above the Medical Distribution median
No single metric tells the full story. See the ASX:EBO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ebos is the largest pharmaceutical wholesaler across Australia and New Zealand. It services community pharmacies and hospitals, which contribute around 50% and 30% of revenue, respectively. Drug pricing and wholesale margins for PBS medicine are governed by the Australian government's Pharmaceutical Benefits Scheme, or PBS. Wholesale gross margins are capped at 7% for community pharmacy and 10% for hospitals, and ongoing price reform typically results in low-single-digit revenue growth. Aside from pharma distribution, Ebos operates an animal health product wholesale, manufacturing and retail business, as well as undertaking third party logistics services. These segments are smaller contributors to group revenue but due to the unregulated nature are higher-margin operations.
77GF Score
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