ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Freightways Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 9.53%.
As of today (2026-06-25), Freightways Group's WACC % is 14.17%. Freightways Group's ROC % is 4.92% (calculated using TTM income statement data).
Freightways Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Freightways Group (ASX:FRW) 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, Freightways Group's WACC % is 14.17%. Freightways Group's ROC % is 4.92% (calculated using TTM income statement data).
Freightways Group 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.
Freightways Group ROC % Related Terms
Freightways Group ROC % Historical Data
* Premium members only.
The historical data trend for Freightways 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.
Freightways Group (ASX:FRW) has a ROC % of 9.53% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Freightways Group and its competitors.
Is Freightways Group's ROC % too high?
Freightways Group's current ROC % is 9.53%. The Transportation industry median ROC % is 4.69. Freightways Group's value of 9.53% is 103.2% above this industry median. Overall, Freightways Group has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Freightways Group's ROC % compare to FDX and UPS?
Freightways Group's ROC % of 9.53% can be compared against companies in the Transportation industry. The industry median ROC % is 4.69. Freightways Group's value of 9.53% is 103.2% 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 Transportation company?
The median ROC % among Transportation companies is 4.69, based on 994 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. Freightways Group's current ROC % of 9.53% is 103.2% 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 Freightways Group and its competitors. For the Transportation industry, the median ROC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freightways Group's current ROC % is 9.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freightways Group stock overvalued right now?
Based on GuruFocus' analysis, Freightways Group (ASX:FRW) is currently considered Modestly Overvalued. The stock's GF Value™ is A$9.76, compared to a current price of A$11.40 — trading 16.8% above its estimated fair value. The current ROC % is 9.53% and 103.2% above the Transportation industry median of 4.69. Freightways Group's overall GF Score™ is 71/100 with 5 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 Freightways Group (ASX:FRW), the current ROC % is 9.53% 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 Freightways Group (ASX:FRW) Overvalued in 2026?
Based on GuruFocus' analysis, Freightways Group stock appears to be overvalued.
The current stock price of A$11.40 is trading 16.8% above its estimated GF Value™ of A$9.76.
GuruFocus considers Freightways Group to be Modestly Overvalued.
Key valuation signals for ASX:FRW:
ROC %: 9.53%
GF Value™: A$9.76 vs. price of A$11.40 (16.8% above fair value)
Industry Position: 103.2% above the Transportation median
No single metric tells the full story. See the ASX:FRW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Freightways Group Ltd is a provider of express package services throughout New Zealand and Australia. The company is organized into three reportable segments: Express Package and Business Mail, Information Management, and Corporate and others. The Express Package and Business Mail segment covers network courier, point-to-point courier, and postal services. Information management comprises secure paper-based and electronic business information management services. Corporate and other comprises corporate, financing, and property management services. Key revenue is derived from the Express Package and Business Mail divisions.
71GF Score
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