Phoslock Environmental Technologies (ASX:PET) ROC %: -101.18% (As of Dec. 2025)

What is Phoslock Environmental Technologies ROC %?

Phoslock Environmental Technologies ASX:PET -14.29% ROC % is -101.18% as of Dec. 2025. The stock has 3 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Phoslock Environmental Technologies's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -101.18%.

As of today (2026-06-24), Phoslock Environmental Technologies's WACC % is 8.28%. Phoslock Environmental Technologies's ROC % is -116.53% (calculated using TTM income statement data). Phoslock Environmental Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Phoslock Environmental Technologies (ASX:PET) 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, Phoslock Environmental Technologies's WACC % is 8.28%. Phoslock Environmental Technologies's ROC % is -116.53% (calculated using TTM income statement data). Phoslock Environmental Technologies 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.

Phoslock Environmental Technologies ROC % Related Terms

Phoslock Environmental Technologies ROC % Historical Data

* Premium members only.

The historical data trend for Phoslock Environmental Technologies'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.

Phoslock Environmental Technologies ROC % Chart

Phoslock Environmental Technologies Annual Data

Trend

Jun16

Jun17

Jun18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROC %

Get a 7-Day Free Trial

-34.15

-426.90

-119.98

-139.19

-123.51

Phoslock Environmental Technologies Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
ROC %	Get a 7-Day Free Trial															74.77	-88.91	-148.24	-125.08	-101.18

Phoslock Environmental Technologies ROC % Calculation

Phoslock Environmental Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2025 is calculated as:

	ROC % (A: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2024 )	+	Invested Capital (A: Dec. 2025 ))	/ count )
=	-2.971 * ( 1 - 0% )	/	( (2.49	+	2.321)	/ 2 )
=	-2.971	/	2.4055
=	-123.51 %

where

	Invested Capital		(A: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	11.233	-	0.784	-	( 7.959	-	max(0, 0.864	-	11.233	+	7.959	))
=	2.49

	Invested Capital		(A: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8.438	-	0.812	-	( 5.305	-	max(0, 1.387	-	8.438	+	5.305	))
=	2.321

Phoslock Environmental Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2025 is calculated as:

	ROC % (Q: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2025 )	+	Invested Capital (Q: Dec. 2025 ))	/ count )
=	-2.61 * ( 1 - 0% )	/	( (2.838	+	2.321)	/ 2 )
=	-2.61	/	2.5795
=	-101.18 %

where

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	9.334	-	0.215	-	( 6.281	-	max(0, 0.332	-	9.334	+	6.281	))
=	2.838

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8.438	-	0.812	-	( 5.305	-	max(0, 1.387	-	8.438	+	5.305	))
=	2.321

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%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -101.18% mean?

Phoslock Environmental Technologies (ASX:PET) has a ROC % of -101.18% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Phoslock Environmental Technologies and its competitors.

Is Phoslock Environmental Technologies' ROC % too high?

Phoslock Environmental Technologies' current ROC % is -101.18%.

How does Phoslock Environmental Technologies' ROC % compare to VLTO and ZWS?

Phoslock Environmental Technologies' ROC % of -101.18% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. 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 Industrial Products company?

The median ROC % among Industrial Products companies is 5.23, based on 3,039 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. 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 Phoslock Environmental Technologies and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Phoslock Environmental Technologies's current ROC % is -101.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Phoslock Environmental Technologies stock overvalued right now?

Based on GuruFocus' analysis, Phoslock Environmental Technologies (ASX:PET) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.03, compared to a current price of A$0.01 — trading 80% below its estimated fair value. The current ROC % is -101.18%. 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 Phoslock Environmental Technologies (ASX:PET), the current ROC % is -101.18% 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.

Phoslock Environmental Technologies Business Description

Industry Industrials Industrial Products

Comparable Companies ASX:AEI ASX:DEM VLTO SZSE:300390 ZWS TSE:6370 TSE:6368 OSTO:MTRS SHSE:600388 CECO HKSE:00586 TPE:6944 PCT ASX:SRL TSE:6013 SZSE:300137 TSE:7004 SHSE:688376 SHSE:603279 SHSE:603200

Address 75 Elizabeth Street, Suite3, Level 12, Sydney, NSW, AUS, 2000

Website http://www.phoslock.com.au

Phoslock Environmental Technologies Ltd provides water technologies and engineering solutions to manage nutrients and other water pollutants. The company is engaged in providing design, engineering, and project implementation solutions for water-related projects and water treatment products to clean up lakes, rivers, canals, wetlands, and drinking water reservoirs. The geographical segments of the group are Australia/New Zealand, Europe/UK, U.S/Canada/Brazil, and China. The majority of revenue is from U.S/Canada/Brazil geographical area.