ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Heavy Rare Earths's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -4,200.00%.
As of today (2026-06-24), Heavy Rare Earths's WACC % is 7.56%. Heavy Rare Earths's ROC % is -8150.00% (calculated using TTM income statement data).
Heavy Rare Earths earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Heavy Rare Earths (ASX:HRE) 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, Heavy Rare Earths's WACC % is 7.56%. Heavy Rare Earths's ROC % is -8150.00% (calculated using TTM income statement data).
Heavy 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.
Heavy Rare Earths ROC % Related Terms
Heavy Rare Earths ROC % Historical Data
* Premium members only.
The historical data trend for Heavy 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.
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.
Heavy Rare Earths (ASX:HRE) has a ROC % of -4,200.00% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Heavy Rare Earths and its competitors.
Is Heavy Rare Earths' ROC % too high?
Heavy Rare Earths' current ROC % is -4,200.00%.
How does Heavy Rare Earths' ROC % compare to UEC and LEU?
Heavy Rare Earths' ROC % of -4,200.00% can be compared against companies in the Other Energy Sources 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 an Other Energy Sources company?
A good ROC % depends on the Other Energy Sources 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 Heavy Rare Earths and its competitors. Heavy Rare Earths's current ROC % is -4,200.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heavy Rare Earths stock overvalued right now?
Heavy Rare Earths (ASX:HRE) has a current ROC % of -4,200.00%. The current ROC % is -4,200.00%. 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 Heavy Rare Earths (ASX:HRE), the current ROC % is -4,200.00% 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.
Heavy Rare Earths Ltd is engaged in the evaluation and exploration of heavy rare earths and other resources at its areas of interest located in Western and Southern Australia. Its project portfolio includes: Radium Hill uranium critical minerals project, Prospect Hill uranium critical minerals project, Lake Namba Billeroo uranium project, Perenjori uranium project, Cowalinya rare earth project, and Duke project.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:HRE has been successfully added to your