Reef Casino Trust (ASX:RCT) ROC %: 15.70% (As of Dec. 2025)

What is Reef Casino Trust ROC %?

Reef Casino Trust ASX:RCT +3.33% 74 ROC % is 15.70% as of Dec. 2025. GuruFocus rates ASX:RCT with a GF Score™ of 74/100 and a GF Value™ of A$3.01 (Modestly Overvalued). The stock has 9 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 %. Reef Casino Trust's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 15.70%.

As of today (2026-07-12), Reef Casino Trust's WACC % is 5.29%. Reef Casino Trust's ROC % is 11.32% (calculated using TTM income statement data). Reef Casino Trust 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.

Reef Casino Trust (ASX:RCT) 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, Reef Casino Trust's WACC % is 5.29%. Reef Casino Trust's ROC % is 11.32% (calculated using TTM income statement data). Reef Casino Trust 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.

Reef Casino Trust ROC % Related Terms

Reef Casino Trust ROC % Historical Data

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The historical data trend for Reef Casino Trust'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.

Reef Casino Trust ROC % Chart

Reef Casino Trust Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROC %

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15.79

19.50

11.39

10.61

11.29

Reef Casino Trust 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															12.78	9.07	12.08	6.94	15.70

74GF Score

Reef Casino Trust ASX:RCT

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Reef Casino Trust ROC % Calculation

Reef Casino Trust'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 )
=	10.877 * ( 1 - 0% )	/	( (95.482	+	97.217)	/ 2 )
=	10.877	/	96.3495
=	11.29 %

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	))
=	101.131	-	4.72	-	( 3.186	-	max(0, 4.72	-	5.649	+	3.186	))
=	95.482

	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	))
=	103.618	-	5.365	-	( 3.812	-	max(0, 5.365	-	6.401	+	3.812	))
=	97.217

Reef Casino Trust'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 )
=	15.126 * ( 1 - 0% )	/	( (95.508	+	97.217)	/ 2 )
=	15.126	/	96.3625
=	15.70 %

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	))
=	100.957	-	3.812	-	( 1.783	-	max(0, 3.812	-	5.449	+	1.783	))
=	95.508

	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	))
=	103.618	-	5.365	-	( 3.812	-	max(0, 5.365	-	6.401	+	3.812	))
=	97.217

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 15.70% mean?

Reef Casino Trust (ASX:RCT) has a ROC % of 15.70% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Reef Casino Trust and its competitors.

Is Reef Casino Trust's ROC % too high?

Reef Casino Trust's current ROC % is 15.70%. The Travel & Leisure industry median ROC % is 3.77. Reef Casino Trust's value of 15.70% is 316.4% above this industry median. Overall, Reef Casino Trust has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Reef Casino Trust's ROC % compare to LVS and MGM?

Reef Casino Trust's ROC % of 15.70% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.77. Reef Casino Trust's value of 15.70% is 316.4% 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 Travel & Leisure company?

The median ROC % among Travel & Leisure companies is 3.77, based on 833 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. Reef Casino Trust's current ROC % of 15.70% is 316.4% 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 Reef Casino Trust and its competitors. For the Travel & Leisure industry, the median ROC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reef Casino Trust's current ROC % is 15.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Reef Casino Trust stock overvalued right now?

Based on GuruFocus' analysis, Reef Casino Trust (ASX:RCT) is currently considered Modestly Overvalued. The stock's GF Value™ is A$3.01, compared to a current price of A$3.72 — trading 23.6% above its estimated fair value. The current ROC % is 15.70% and 316.4% above the Travel & Leisure industry median of 3.77. Reef Casino Trust's overall GF Score™ is 74/100 with 9 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 Reef Casino Trust (ASX:RCT), the current ROC % is 15.70% 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 Reef Casino Trust (ASX:RCT) Overvalued in 2026?

Based on GuruFocus' analysis, Reef Casino Trust stock appears to be overvalued. The current stock price of A$3.72 is trading 23.6% above its estimated GF Value™ of A$3.01. GuruFocus considers Reef Casino Trust to be Modestly Overvalued.

Key valuation signals for ASX:RCT:

ROC %: 15.70%
GF Value™: A$3.01 vs. price of A$3.72 (23.6% above fair value)
GF Score™: 74/100 with 9 warning signs
Industry Position: 316.4% above the Travel & Leisure median

No single metric tells the full story. See the ASX:RCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Reef Casino Trust Business Description

Industry Consumer Cyclical Travel & Leisure

Comparable Companies ASX:SGR LVS HKSE:00027 HKSE:01928 MGM WYNN BYD CZR STC:VPL SGX:G13 MTN HKSE:02282 HGV RRR XPAR:BAIN BOM:544325 VAC HKSE:01128 PENN IST:PKENT

Address 35-41 Wharf Street, PO Box 7320, Cairns, QLD, AUS, 4870

Website https://www.reefcasino.com.au

Reef Casino Trust is engaged in the operation of the Reef Hotel-Casino Complex located in Cairns, Queensland, Australia. The company derives revenue from the casino, which includes electronic gaming and table games, and the hotel, which includes room accommodation and food and beverage, and others. The majority of the revenue is generated from the rental income received from the casino operations. The company operates in two segments, which includes Casino operations and Hotel segment.

74GF Score

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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$3.72

Price

A$3.01

GF Value

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